Afya Ltd (AFYA) stock analysis
Close on Nov 11, 2026Market cap $41.37MP/E 7.1Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Afya passes 11 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 4/6
- Past performance
- 5/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 16.9%, above the 10% that usually covers the cost of capital.
Earnings grew over 5 years
Net income grew 20.8% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 16.7% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 26.0% a year over the last three fiscal years.
What to watch
Return on equity under 15%
Return on equity was 16.5% over the last twelve months and averaged 12.8% over five years; we look for 15% on both.
High debt
Debt is 42.3% of shareholders' equity, above the 40% we consider low.
Earnings growth not accelerating
Net income grew 19.2% over the last twelve months, against a 5-year average of 20.8% a year.
Interest not well covered
Operating income covers interest expense 2.2 times; we look for at least 5.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth4/6
Revenue growing 10%+ a year
Revenue grew 16.7% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 26.0% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 19.2% over the last twelve months, against a 5-year average of 20.8% a year.
Growing faster than the industry
Revenue grew 11.9% over the last twelve months; the Services-educational services median is 2.7%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 64.5% over the last twelve months, against 63.2% a year earlier.
Past performance5/6
Return on equity under 15%
Return on equity was 16.5% over the last twelve months and averaged 12.8% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 16.9%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Afya's return on equity of 16.5% is above the Services-educational services median of 0.6%.
Earnings grew over 5 years
Net income grew 20.8% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 20.4% over the last twelve months, against a 5-year average of 16.4%.
Net margin above the industry
Afya's net margin of 20.4% is above the Services-educational services median of -3.7%.
Financial health2/6
High debt
Debt is 42.3% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 22.2% five years ago to 42.3%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 74.6% of total debt.
Interest not well covered
Operating income covers interest expense 2.2 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 2.20 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Afya has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Afya. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $6.22M
- Value traded per 1% price move
- $1.89M
Downside
Medium risk
- Typical loss in a bad month
- 23.9%
- Volatility (annualized)
- 43%
- Sharpe ratio, 1 year
- -0.67
- Beta to the S&P 500 (5Y)
- 0.78
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2016 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +11.9% | +16.7% | +25.2% | – | |
| Gross profit | +14.1% | +17.5% | +25.5% | – | |
| Operating income | +19.9% | +22.2% | +27.3% | – | |
| Net income | +19.2% | +26.3% | +20.8% | – | |
| EPS, diluted | +18.9% | +26.0% | +21.4% | – | |
| Free cash flow | +5.4% | +26.4% | +37.1% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 12.1% | 16.5% | |
| Return on assets | – | 7.6% | 8.3% | |
| Current ratio | – | 2.38 | 2.20 | |
| Debt to equity | – | 0.22 | 0.42 | |
| Net debt to EBITDA | – | -0.91× | 0.59× | |
| Interest coverage | – | 3.7× | 2.2× | |
| Inventory turnover | – | 76.0× | – | |
| Capex to revenue | – | 7.5% | 4.5% | |
| Diluted shares | – | 94M | 91M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Afya generated 5.48B BRL from operations and spent 937.61M BRL on capital expenditure, dividends and share buybacks. 76% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 20.4% | 0.41× | 1.99× | 16.5% |
| FY2024 | 19.1% | 0.40× | 2.09× | 16.0% |
| FY2023 | 13.4% | 0.39× | 2.17× | 11.4% |
| FY2022 | 16.0% | 0.34× | 2.22× | 12.2% |
| FY2021 | 13.0% | 0.31× | 1.96× | 7.8% |
| FY2020 | 24.3% | 0.31× | 1.59× | 12.1% |
| FY2019 | 20.5% | 0.39× | 1.49× | 12.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero752.46M BRL
- Cash generatingOperating cash flow above zero1.53B BRL
- Return on assets improvedROA up on the prior year8.3% → 8.5%
- Earnings backed by cashOperating cash flow above net income1.53B BRL vs 752.46M BRL
- Less leverageLong-term debt to assets fell20.7% → 21.3%
- Better liquidityCurrent ratio rose1.39 → 2.20
- No dilutionShare count did not rise91M → 91M
- Gross margin improvedGross margin up on the prior year63.21% → 64.46%
- More efficientAsset turnover rose0.44 → 0.42
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