Afya Ltd. (AFYA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Adtalem Global Education, Inc.

Agiliti, Inc. (Minnesota)

European Wax Center, Inc.

Strategic Education, Inc.

Mister Car Wash, Inc.

OneSpaWorld Holdings Ltd.

Afya Ltd.

Perdoceo Education Corp.

WW International, Inc.

Sonder Holdings, Inc.

Peloton Interactive, Inc.

Why is Afya Ltd. ?

High Management Efficiency with a high ROCE of 15.90%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.88 times

Healthy long term growth as Net Sales has grown by an annual rate of 23.38% and Operating profit at 25.49%

Positive results in Sep 25

INVENTORY TURNOVER RATIO(HY) Highest at 10,372.48 times
RAW MATERIAL COST(Y) Fallen by -3.18% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 41.67 %

With ROCE of 19.57%, it has a very attractive valuation with a 1.42 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.17%, its profits have risen by 12.6% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 40.04%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.16% over the previous quarter.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 13.68% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.17% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Afya Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Afya Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Afya Ltd.

-15.02%

-0.09

27.60%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.38%

EBIT Growth (5y)

25.49%

EBIT to Interest (avg)

2.51

Debt to EBITDA (avg)

0.88

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.52

Tax Ratio

5.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

40.04%

ROCE (avg)

15.90%

ROE (avg)

11.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.50

EV to EBIT

7.25

EV to EBITDA

5.55

EV to Capital Employed

1.42

EV to Sales

2.39

PEG Ratio

1.18

Dividend Yield

ROCE (Latest)

19.57%

ROE (Latest)

14.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 10,372.48 times

RAW MATERIAL COST(Y)

Fallen by -3.18% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 41.67 %

NET SALES(Q)

Highest at USD 170.41 MM

-3What is not working for the Company

INTEREST(Q)

Highest at USD 26.26 MM

Here's what is working for Afya Ltd.

Inventory Turnover Ratio

Highest at 10,372.48 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 170.41 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 41.67 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -3.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 17.37 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Afya Ltd.

Interest

At USD 26.26 MM has Grown at 24.16%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 26.26 MM

in the last five periods and Increased by 24.16% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Non Operating Income

Highest at USD 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income