NasdaqGS:AFYA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.7%

AFYA

0.5%

US Consumer Services

-1.3%

US Market


1 Year Return

-1.0%

AFYA

56.8%

US Consumer Services

18.5%

US Market

Return vs Industry: AFYA underperformed the US Consumer Services industry which returned 49.8% over the past year.

Return vs Market: AFYA underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

AFYAIndustryMarket
7 Day-8.7%0.5%-1.3%
30 Day3.4%9.0%5.3%
90 Day-4.0%11.2%7.5%
1 Year-1.0%-1.0%57.3%56.8%21.3%18.5%
3 Yearn/a65.5%60.0%42.4%32.9%
5 Yearn/a269.2%242.5%84.2%63.5%

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?

49.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFYA ($24.88) is trading above our estimate of fair value ($9.16)

Significantly Below Fair Value: AFYA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AFYA is poor value based on its PE Ratio (48.9x) compared to the US Consumer Services industry average (42.6x).

PE vs Market: AFYA is poor value based on its PE Ratio (48.9x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: AFYA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: AFYA is overvalued based on its PB Ratio (5x) compared to the US Consumer Services industry average (2.7x).


Next Steps

Future Growth

How is Afya forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFYA's forecast earnings growth (24.3% per year) is above the savings rate (2.2%).

Earnings vs Market: AFYA's earnings (24.3% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: AFYA's revenue (18.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: AFYA's revenue (18.5% 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 (18.2%).


Next Steps

  • Explore growth companies in the Consumer Services industry.

Past Performance

How has Afya performed over the past 5 years?

141.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AFYA has high quality earnings.

Growing Profit Margin: AFYA's current net profit margins (26.3%) are higher than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AFYA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare AFYA's past year earnings growth to its 5-year average.

Earnings vs Industry: AFYA earnings growth over the past year (141%) exceeded the Consumer Services industry 7.9%.


Return on Equity

High ROE: AFYA's Return on Equity (10.1%) is considered low.


Next Steps

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$462.5M).

Long Term Liabilities: AFYA's short term assets (R$1.3B) exceed its long term liabilities (R$728.1M).


Debt to Equity History and Analysis

Debt Level: AFYA's debt to equity ratio (5.3%) 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 (271.6%).

Interest Coverage: AFYA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.98%

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?

1.3yrs

Average management tenure


CEO

Virgilio Deloy Gibbon (44 yo)

1.25yrs

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

NamePositionTenureCompensationOwnership
Virgilio Deloy Gibbon
Chief Executive Officer1.25yrsno data0.71%
R$ 16.7m
Luis Andre Blanco
Chief Financial Officer0.50yrno datano data
Renata Couto
Investor Relations Executive Managerno datano datano data
Julio Eduardo de Angeli
Vice President of Continuing Education & Innovation1.25yrsno data0.17%
R$ 3.9m

1.3yrs

Average Tenure

47yo

Average Age

Experienced Management: AFYA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Felipe Argalji
Director1.25yrsno datano data
Daniel Borghi
Director1.25yrsno datano data
Vanessa Lopes
Independent Director1.25yrsno datano data
Nicolau Esteves
Chairman1.25yrsno data25.59%
R$ 599.7m
Renato Esteves
Director1.25yrsno data2.74%
R$ 64.1m
Sérgio Mendes Coutinho
Director1.25yrsno datano data
Laura Carvalho
Director1.25yrsno datano data
Daulins Emilio
Non-Independent Director1.17yrsno datano data
Miguel Filisbino De Paula
Independent Director0.17yrno datano data
Flavio Dias
Independent Director0.25yrno datano data
Joao Paulo De Faria
Independent Director0.17yrno datano data

1.3yrs

Average Tenure

43yo

Average Age

Experienced Board: AFYA's board of directors are not considered experienced ( 1.3 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 been diluted in the past year, with total shares outstanding growing by 3.6%.


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$2.344b
  • Shares outstanding: 93.00m
  • Website: https://www.afya.com.br

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFYANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 2019
1AYDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2019

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 Analysis2020/10/21 00:55
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.