ScoreComparison
Why is Afya Ltd. ?
1
High Management Efficiency with a high ROCE of 15.90%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.36 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 23.17% and Operating profit at 24.90%
4
Flat results in Jun 26
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.8 times
- OPERATING PROFIT MARGIN(Q) Lowest at 39.37 %
5
With ROCE of 20.33%, it has a very attractive valuation with a 1.47 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 -15.95%, its profits have risen by 12.2% ; the PEG ratio of the company is 0.8
6
High Institutional Holdings at 38.11%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -15.95% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Afya Ltd.
-16.02%
-0.54
27.75%
S&P 500
15.76%
1.22
13.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
23.17%
EBIT Growth (5y)
24.90%
EBIT to Interest (avg)
2.51
Debt to EBITDA (avg)
0.88
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
0.53
Tax Ratio
5.63%
Dividend Payout Ratio
0.02%
Pledged Shares
0
Institutional Holding
40.06%
ROCE (avg)
15.90%
ROE (avg)
11.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.56
EV to EBIT
7.22
EV to EBITDA
5.51
EV to Capital Employed
1.47
EV to Sales
2.36
PEG Ratio
0.82
Dividend Yield
NA
ROCE (Latest)
20.32%
ROE (Latest)
15.46%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 233.78 MM
RAW MATERIAL COST(Y)
Fallen by 1.83% (YoY
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.8 times
OPERATING PROFIT MARGIN(Q)
Lowest at 39.37 %
Here's what is working for Afya Ltd.
Operating Cash Flow
Highest at USD 233.78 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Raw Material Cost
Fallen by 1.83% (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 17.92 MM
in the last five periodsMOJO 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.
Operating Profit Margin
Lowest at 39.37 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 4.8 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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