NasdaqGS:AFYA

Stock Analysis Report

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Market Cap

US$2.5b

Last Updated

2021/06/21 00:46 UTC

Data Sources

Company Financials +

Executive Summary

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Afya's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AFYA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AFYA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

5.2%

AFYA

-8.3%

US Consumer Services

-1.9%

US Market


1 Year Return

9.7%

AFYA

-30.5%

US Consumer Services

38.2%

US Market

Return vs Industry: AFYA exceeded the US Consumer Services industry which returned -30.5% over the past year.

Return vs Market: AFYA underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

AFYAIndustryMarket
7 Day5.2%-8.3%-1.9%
30 Day21.8%-14.5%1.0%
90 Day32.9%-38.9%3.8%
1 Year9.7%9.7%-30.3%-30.5%40.4%38.2%
3 Yearn/a-14.4%-17.4%57.5%47.8%
5 Yearn/a107.2%92.6%127.2%101.7%

Long-Term Price Volatility Vs. Market

How volatile is Afya's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Afya undervalued compared to its fair value and its price relative to the market?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFYA ($26.57) is trading below our estimate of fair value ($50.49)

Significantly Below Fair Value: AFYA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AFYA is poor value based on its PE Ratio (41.6x) compared to the US Consumer Services industry average (19x).

PE vs Market: AFYA is poor value based on its PE Ratio (41.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AFYA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: AFYA is overvalued based on its PB Ratio (4.3x) compared to the US Consumer Services industry average (2.2x).


Future Growth

How is Afya forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFYA's forecast earnings growth (28.5% per year) is above the savings rate (2%).

Earnings vs Market: AFYA's earnings (28.5% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFYA's revenue (12.9% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: AFYA's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFYA's Return on Equity is forecast to be low in 3 years time (18.5%).


Past Performance

How has Afya performed over the past 5 years?

51.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFYA has high quality earnings.

Growing Profit Margin: AFYA's current net profit margins (22.7%) are lower than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: AFYA's earnings have grown significantly by 51.2% per year over the past 5 years.

Accelerating Growth: AFYA's earnings growth over the past year (41.5%) is below its 5-year average (51.2% per year).

Earnings vs Industry: AFYA earnings growth over the past year (41.5%) underperformed the Consumer Services industry 41.5%.


Return on Equity

High ROE: AFYA's Return on Equity (10.7%) is considered low.


Financial Health

How is Afya's financial position?


Financial Position Analysis

Short Term Liabilities: AFYA's short term assets (R$1.3B) exceed its short term liabilities (R$633.6M).

Long Term Liabilities: AFYA's short term assets (R$1.3B) do not cover its long term liabilities (R$1.4B).


Debt to Equity History and Analysis

Debt Level: AFYA's debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AFYA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AFYA's debt is well covered by operating cash flow (64.5%).

Interest Coverage: AFYA's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Dividend

What is Afya current dividend yield, its reliability and sustainability?

1.05%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AFYA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AFYA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AFYA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AFYA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AFYA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Virgilio Deloy Gibbon (44 yo)

1.92yrs

Tenure

Mr. Virgilio Deloy Capobianco Gibbon is Chief Executive Officer of Afya Limited since July 2019. He has been the Chief Executive Officer of Afya Brazil since August 2016. Prior to joining us, he was Chief ...


Leadership Team

Experienced Management: AFYA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: AFYA's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Afya Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Afya Limited
  • Ticker: AFYA
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$2.475b
  • Shares outstanding: 93.15m
  • Website: https://www.afya.com.br

Number of Employees


Location

  • Afya Limited
  • Alameda Oscar Niemeyer, No. 119
  • Room 502, 504, 1,501 and 1,503
  • Nova Lima
  • Minas Gerais
  • Brazil

Listings


Biography

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company provides educational products and services, including medical schools, medical residency preparatory cou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 00:46
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.