AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD
AFYA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. AFYA scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: AFYA is growing strongly while it also seems undervalued.
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.
In the past 5 years AFYA has always been profitable.
Each year in the past 5 years AFYA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AFYA (7.46%) is better than 76.39% of its industry peers.
AFYA has a Return On Equity of 15.45%. This is in the better half of the industry: AFYA outperforms 77.78% of its industry peers.
AFYA's Return On Invested Capital of 11.11% is amongst the best of the industry. AFYA outperforms 86.11% of its industry peers.
AFYA had an Average Return On Invested Capital over the past 3 years of 9.34%. This is in line with the industry average of 10.64%.
The last Return On Invested Capital (11.11%) for AFYA is above the 3 year average (9.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 15.45% | ||
| ROIC | 11.11% |
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
With an excellent Profit Margin value of 19.79%, AFYA belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of AFYA has declined.
Looking at the Operating Margin, with a value of 31.87%, AFYA belongs to the top of the industry, outperforming 98.61% of the companies in the same industry.
AFYA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 64.24%, AFYA is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
AFYA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.87% | ||
| PM (TTM) | 19.79% | ||
| GM | 64.24% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFYA is destroying value.
The number of shares outstanding for AFYA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AFYA has more shares outstanding
AFYA has a worse debt/assets ratio than last year.
2.2 Solvency
AFYA has an Altman-Z score of 2.22. 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 has a Altman-Z score of 2.22. This is comparable to the rest of the industry: AFYA outperforms 59.72% of its industry peers.
The Debt to FCF ratio of AFYA is 2.85, which is a good value as it means it would take AFYA, 2.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, AFYA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that AFYA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, AFYA is doing worse than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.22 |
ROIC/WACC1
WACC11.11%
2.3 Liquidity
AFYA has a Current Ratio of 1.42. This is a normal value and indicates that AFYA is financially healthy and should not expect problems in meeting its short term obligations.
AFYA's Current ratio of 1.42 is in line compared to the rest of the industry. AFYA outperforms 58.33% of its industry peers.
A Quick Ratio of 1.42 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA has a Quick ratio of 1.42. This is in the better half of the industry: AFYA outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.97%, which is quite impressive.
Measured over the past years, AFYA shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.00% on average per year.
AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.70%.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.50% yearly.
EPS 1Y (TTM)27.97%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.79%
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
3.2 Future
Based on estimates for the next years, AFYA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.98% yearly.
EPS Next Y5.2%
EPS Next 2Y9.72%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue Next Year13.23%
Revenue Next 2Y10.94%
Revenue Next 3Y9.98%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 8.96, the valuation of AFYA can be described as very reasonable.
AFYA's Price/Earnings ratio is rather cheap when compared to the industry. AFYA is cheaper than 91.67% of the companies in the same industry.
AFYA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.48.
Based on the Price/Forward Earnings ratio of 7.84, the valuation of AFYA can be described as very cheap.
Based on the Price/Forward Earnings ratio, AFYA is valued cheaper than 97.22% of the companies in the same industry.
AFYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFYA is valued cheaply inside the industry as 84.72% of the companies are valued more expensively.
AFYA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFYA is cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
AFYA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AFYA may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)0.36
EPS Next 2Y9.72%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.45%.
AFYA's Dividend Yield is rather good when compared to the industry average which is at 3.87. AFYA pays more dividend than 88.89% of the companies in the same industry.
AFYA's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
AFYA is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.72%
EPS Next 3Y11.42%
15.14
-0.12 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners17.74%
Inst Owner Change0%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.42B
Analysts52.31
Price Target20.33 (34.28%)
Short Float %1.49%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)17.87%
Min EPS beat(2)14.25%
Max EPS beat(2)21.5%
EPS beat(4)3
Avg EPS beat(4)10.2%
Min EPS beat(4)-10.08%
Max EPS beat(4)21.5%
EPS beat(8)5
Avg EPS beat(8)8.32%
EPS beat(12)6
Avg EPS beat(12)4.62%
EPS beat(16)8
Avg EPS beat(16)3.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.92%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)4
Avg Revenue beat(12)-0.03%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)2.2%
PT rev (3m)5.28%
EPS NQ rev (1m)-3.03%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)4.64%
EPS NY rev (3m)7.23%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 7.84 | ||
| P/S | 2.3 | ||
| P/FCF | 7.03 | ||
| P/OCF | 5.34 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)1.69
EY11.16%
EPS(NY)1.93
Fwd EY12.75%
FCF(TTM)2.15
FCFY14.22%
OCF(TTM)2.84
OCFY18.73%
SpS6.59
BVpS8.44
TBVpS-2.12
PEG (NY)1.72
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 15.45% | ||
| ROCE | 14.06% | ||
| ROIC | 11.11% | ||
| ROICexc | 13.04% | ||
| ROICexgc | 76.58% | ||
| OM | 31.87% | ||
| PM (TTM) | 19.79% | ||
| GM | 64.24% | ||
| FCFM | 32.67% |
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%
ROICexcg growth 3Y23.68%
ROICexcg 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-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 102.92% | ||
| Cap/Sales | 10.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.61% | ||
| Profit Quality | 165.08% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.22 |
F-Score7
WACC11.11%
ROIC/WACC1
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)27.97%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.79%
EPS Next Y5.2%
EPS Next 2Y9.72%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
Revenue Next Year13.23%
Revenue Next 2Y10.94%
Revenue Next 3Y9.98%
Revenue Next 5YN/A
EBIT growth 1Y32.47%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year57.47%
EBIT Next 3Y22.54%
EBIT Next 5YN/A
FCF growth 1Y85.33%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y64.88%
OCF growth 3Y31.44%
OCF growth 5Y36.78%