AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
USA - NASDAQ:AFYA - KYG011251066 - Common Stock
15.04 USD
+0.15 (+1.01%)
15.04 USD
0 (0%)
Taking everything into account, AFYA scores 6 out of 10 in our fundamental rating. AFYA was compared to 77 industry peers in the Diversified Consumer Services industry. AFYA scores excellent on profitability, but there are some minor concerns on its financial health. AFYA is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year AFYA was profitable.
In the past year AFYA had a positive cash flow from operations.
Each year in the past 5 years AFYA has been profitable.
AFYA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFYA has a Return On Assets of 7.51%. This is in the better half of the industry: AFYA outperforms 76.62% of its industry peers.
With a decent Return On Equity value of 15.10%, AFYA is doing good in the industry, outperforming 76.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.57%, AFYA belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFYA is in line with the industry average of 9.48%.
The last Return On Invested Capital (12.57%) for AFYA is above the 3 year average (9.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.51% | ||
| ROE | 15.1% | ||
| ROIC | 12.57% |
ROA(3y)5.81%
ROA(5y)5.4%
ROE(3y)12.4%
ROE(5y)11.05%
ROIC(3y)9.34%
ROIC(5y)8.2%
1.3 Margins
Looking at the Profit Margin, with a value of 19.58%, AFYA belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
AFYA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 32.42%, AFYA belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
In the last couple of years the Operating Margin of AFYA has grown nicely.
The Gross Margin of AFYA (64.56%) is better than 76.62% of its industry peers.
In the last couple of years the Gross Margin of AFYA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.42% | ||
| PM (TTM) | 19.58% | ||
| GM | 64.56% |
OM growth 3Y6.1%
OM growth 5Y2.29%
PM growth 3Y13.74%
PM growth 5Y-3.65%
GM growth 3Y0.61%
GM growth 5Y1.44%
2. Health
2.1 Basic Checks
AFYA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AFYA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AFYA has been increased compared to 5 years ago.
Compared to 1 year ago, AFYA has a worse debt to assets ratio.
2.2 Solvency
AFYA has an Altman-Z score of 2.14. This is not the best score and indicates that AFYA is in the grey zone with still only limited risk for bankruptcy at the moment.
AFYA's Altman-Z score of 2.14 is fine compared to the rest of the industry. AFYA outperforms 64.94% of its industry peers.
The Debt to FCF ratio of AFYA is 2.94, which is a good value as it means it would take AFYA, 2.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFYA (2.94) is better than 74.03% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that AFYA is not too dependend on debt financing.
The Debt to Equity ratio of AFYA (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.18
WACC10.63%
2.3 Liquidity
A Current Ratio of 0.94 indicates that AFYA may have some problems paying its short term obligations.
AFYA's Current ratio of 0.94 is in line compared to the rest of the industry. AFYA outperforms 41.56% of its industry peers.
A Quick Ratio of 0.94 indicates that AFYA may have some problems paying its short term obligations.
AFYA has a Quick ratio (0.94) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.15%, which is quite good.
The Earnings Per Share has been growing by 25.00% on average over the past years. This is a very strong growth
The Revenue has grown by 15.60% in the past year. This is quite good.
The Revenue has been growing by 34.50% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)14.15%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%-0.87%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%13.52%
3.2 Future
The Earnings Per Share is expected to grow by 9.27% on average over the next years. This is quite good.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.
EPS Next Y3.36%
EPS Next 2Y8.01%
EPS Next 3Y9.27%
EPS Next 5YN/A
Revenue Next Year12.37%
Revenue Next 2Y10.38%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.64 indicates a reasonable valuation of AFYA.
AFYA's Price/Earnings ratio is rather cheap when compared to the industry. AFYA is cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of AFYA to the average of the S&P500 Index (27.67), we can say AFYA is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.78, the valuation of AFYA can be described as very cheap.
Based on the Price/Forward Earnings ratio, AFYA is valued cheaper than 96.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AFYA to the average of the S&P500 Index (23.33), we can say AFYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFYA is valued cheaply inside the industry as 88.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AFYA is valued cheaper than 94.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.92 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AFYA may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)0.35
EPS Next 2Y8.01%
EPS Next 3Y9.27%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.57%.
AFYA's Dividend Yield is rather good when compared to the industry average which is at 2.02. AFYA pays more dividend than 90.91% of the companies in the same industry.
AFYA's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
AFYA does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.01%
EPS Next 3Y9.27%
15.04
+0.15 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners19.3%
Inst Owner Change-0.13%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.41B
Revenue(TTM)3.55B
Net Income(TTM)694.24M
Analysts77.14
Price Target19.09 (26.93%)
Short Float %1.76%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11%
Min EPS beat(2)7.76%
Max EPS beat(2)14.25%
EPS beat(4)3
Avg EPS beat(4)8.36%
Min EPS beat(4)-10.08%
Max EPS beat(4)21.5%
EPS beat(8)6
Avg EPS beat(8)9.45%
EPS beat(12)6
Avg EPS beat(12)4.28%
EPS beat(16)9
Avg EPS beat(16)5.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)-0.92%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-1.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)0.38%
PT rev (3m)-6.09%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 7.78 | ||
| P/S | 2.14 | ||
| P/FCF | 6.92 | ||
| P/OCF | 4.94 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)1.74
EY11.57%
EPS(NY)1.93
Fwd EY12.85%
FCF(TTM)2.17
FCFY14.44%
OCF(TTM)3.05
OCFY20.25%
SpS7.03
BVpS9.11
TBVpS-1.96
PEG (NY)2.57
PEG (5Y)0.35
Graham Number18.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.51% | ||
| ROE | 15.1% | ||
| ROCE | 15.91% | ||
| ROIC | 12.57% | ||
| ROICexc | 14.82% | ||
| ROICexgc | 166.98% | ||
| OM | 32.42% | ||
| PM (TTM) | 19.58% | ||
| GM | 64.56% | ||
| FCFM | 30.92% |
ROA(3y)5.81%
ROA(5y)5.4%
ROE(3y)12.4%
ROE(5y)11.05%
ROIC(3y)9.34%
ROIC(5y)8.2%
ROICexc(3y)10.67%
ROICexc(5y)9.63%
ROICexgc(3y)53.37%
ROICexgc(5y)48.58%
ROCE(3y)11.82%
ROCE(5y)10.37%
ROICexgc growth 3Y23.68%
ROICexgc growth 5Y4.99%
ROICexc growth 3Y18.62%
ROICexc growth 5Y3.52%
OM growth 3Y6.1%
OM growth 5Y2.29%
PM growth 3Y13.74%
PM growth 5Y-3.65%
GM growth 3Y0.61%
GM growth 5Y1.44%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 123.59% | ||
| Cap/Sales | 12.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.05% | ||
| Profit Quality | 157.94% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 2.14 |
F-Score6
WACC10.63%
ROIC/WACC1.18
Cap/Depr(3y)115.53%
Cap/Depr(5y)130.54%
Cap/Sales(3y)11.06%
Cap/Sales(5y)12.14%
Profit Quality(3y)172.56%
Profit Quality(5y)151.27%
High Growth Momentum
Growth
EPS 1Y (TTM)14.15%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%-0.87%
EPS Next Y3.36%
EPS Next 2Y8.01%
EPS Next 3Y9.27%
EPS Next 5YN/A
Revenue 1Y (TTM)15.6%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%13.52%
Revenue Next Year12.37%
Revenue Next 2Y10.38%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
EBIT growth 1Y30.49%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year60.99%
EBIT Next 3Y23.03%
EBIT Next 5YN/A
FCF growth 1Y64.44%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y61.2%
OCF growth 3Y31.44%
OCF growth 5Y36.78%