AFYA Afya Limited - Fundamental Analysis
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AFYA Stock | Fundamental Analysis & Investment Insights
NASDAQ
Consumer Defensive
Education & Training Services
Current Price
Live
$14.1
Analyst Target
$18.11
+28.5%
Upside
52W High
$19.9
52W Low
$13.12
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 21, 2026
Market cap
$1.28B
P/E
9.22
ROE
16.7%
Profit margin
20.1%
Debt/Equity
0.62
Dividend yield
1.66%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
AFYA's Piotroski F-Score of 4 indicates a borderline healthy financial position, falling into the 'Stable' range but lacking strong momentum signals. The absence of an Altman Z-Score raises concern about default risk, particularly given a current ratio of 0.98 and debt/equity of 0.62, which are near thresholds for financial stress. Despite this, the company exhibits robust profitability with a 20.08% profit margin and strong earnings growth of 29.8% YoY, supported by a 16.72% ROE. The stock trades at a significant discount to its intrinsic value of $45.13 and Graham Number of $18.59, suggesting undervaluation, though technical trends remain bearish. Analysts maintain a 'hold' recommendation, reflecting cautious optimism.
Key Strengths
High profitability with 20.08% profit margin and 29.88% operating margin
Strong earnings growth of 29.8% YoY and 58.8% Q/Q EPS growth
Attractive valuation relative to intrinsic value ($14.10 vs $45.13) and Graham Number ($18.59)
Consistent earnings beat history with 3 of last 4 quarters exceeding estimates by an average of 16.97%
Low payout ratio of 16.73% indicates room for dividend growth or reinvestment
Key Risks
Piotroski F-Score of 4 is below the 'Strong' threshold (7-9), indicating limited financial strength signals
No Altman Z-Score available; current ratio of 0.98 and quick ratio of 0.95 suggest liquidity pressure
Technical trend is bearish (0/100), indicating weak momentum and downward price pressure
Lack of free cash flow and operating cash flow data limits assessment of cash generation
52-week high is $19.90, implying a 29% downside from peak, with 1-year return at -18.4%
AI Fair Value Estimate
Based on comprehensive analysis
$45.13
+220.1% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
64
Strong
85
78
72
52
35
AI Verdict
Neutral
Key drivers: Strong earnings growth and profitability, Significant undervaluation relative to intrinsic value, Weak financial health signals (Piotroski F-Score of 4), Bearish technical trend and lack of Altman Z-Score
Confidence
78%
Value
85/100
Ref P/E, PEG, Graham Number
Positives
- Current price ($14.10) is well below intrinsic value ($45.13)
- Trading at P/E of 9.22 vs sector average of 28.82
- Price/Sales of 0.35 is extremely low, indicating deep discount
Watchpoints
- No PEG ratio available, limiting growth-adjusted valuation assessment
- Graham Number ($18.59) is above current price, but still suggests modest upside
Future
78/100
Ref Growth rates
Positives
- 29.8% YoY earnings growth and 10.4% revenue growth indicate strong momentum
- Recent quarters show consistent EPS beats with average surprise of +16.97%
- Q/Q EPS growth of +58.8% signals accelerating performance
Watchpoints
- No forward guidance or PEG ratio to validate sustainability
- Recent Q/Q EPS growth is -8.4%, suggesting near-term volatility
Past
72/100
Ref Historical trends
Positives
- 25 consecutive quarters of earnings reporting with consistent beat history
- High average earnings surprise of 16.97% over last 4 quarters
- Strong historical ROE of 16.72% and ROA of 8.35%
Watchpoints
- Significant earnings misses in 2021 and 2020, including -41.0% and -33.3% surprises
- 2024 Q4 earnings missed by -17.1%, indicating inconsistency
Health
52/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.62 is moderate and below sector average of 1.71
- Profitability metrics (ROE, ROA) are above sector averages
Watchpoints
- Piotroski F-Score of 4 is below the 7-9 threshold for strong financial health
- Current ratio of 0.98 and quick ratio of 0.95 indicate tight liquidity
- No Altman Z-Score available, raising default risk concerns
Dividend
35/100
Ref Yield, Payout
Positives
- Low payout ratio of 16.73% suggests sustainability
- Dividend yield of 1.66% is above average for defensive sector
Watchpoints
- Dividend strength score of 25/100 indicates weak overall dividend profile
- No 5-year yield history or ex-dividend date data available
- No evidence of dividend growth or consistency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$14.1
Analyst Target
$18.11
Upside/Downside
+28.5%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AFYA and closest competitors.
Updated 2026-02-20
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AFYA
Afya Limited
Primary
|
-36.5% | +11.1% | -18.4% | -5.9% | +0.9% | +0.2% |
|
AGRO
Adecoagro S.A.
Peer
|
+28.7% | +16.0% | -4.0% | -5.6% | +12.5% | +9.2% |
|
AVO
Mission Produce, Inc.
Peer
|
-17.1% | +10.2% | +11.6% | +11.7% | +14.5% | +8.2% |
|
APEI
American Public Education, Inc.
Peer
|
+44.9% | +234.8% | +104.3% | +50.5% | +13.9% | +7.4% |
|
BGS
B&G Foods, Inc.
Peer
|
-79.7% | -56.7% | -21.4% | +6.6% | +1.4% | +0.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
9.22
Forward P/E
7.64
PEG Ratio
N/A
P/B Ratio
1.4
P/S Ratio
0.35
EV/Revenue
0.9
EV/EBITDA
2.34
Market Cap
$1.28B
Profitability
Profit margins and return metrics
Profit Margin
20.08%
Operating Margin
29.88%
Gross Margin
64.98%
ROE
16.72%
ROA
8.34%
Growth
Revenue and earnings growth rates
Revenue Growth
+10.4%
Earnings Growth
+29.8%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+29.3%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.62
Moderate
Current Ratio
0.98
Weak
Quick Ratio
0.95
Poor
Cash/Share
$10.99
Quarterly Earnings History
EPS performance vs analyst estimates
2026-03-12
$N/A
2025-11-12
$2.08
+17.3% surprise
2025-08-13
$2.27
+12.5% surprise
2025-05-08
$3.2
+21.1% surprise
Consumer Defensive Sector Comparison
Comparing AFYA against 48 companies in the Consumer Defensive sector
(3 bullish, 26 neutral, 19 bearish)
P/E Ratio
9.22
This Stock
vs
30.02
Sector Avg
-69.3%
(Discount)
Return on Equity (ROE)
16.72%
This Stock
vs
4.7%
Sector Avg
+255.9%
(Excellent)
Profit Margin
20.08%
This Stock
vs
-1.11%
Sector Avg
-1901.3%
(Weaker)
Debt to Equity
0.62
This Stock
vs
1.71
Sector Avg
-63.7%
(Less Debt)
Revenue Growth
10.4%
This Stock
vs
9.45%
Sector Avg
+10.1%
(Growing)
Current Ratio
0.98
This Stock
vs
1.97
Sector Avg
-50.4%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AFYA
Afya Limited
|
NEUTRAL | $1.28B | 9.22 | 16.7% | 20.1% | $14.1 | |
|
AGRO
Adecoagro S.A.
|
BEARISH | $1.26B | 38.83 | 1.7% | 1.7% | $8.93 | |
|
AVO
Mission Produce, Inc.
|
NEUTRAL | $953.5M | 25.4 | 6.8% | 2.7% | $13.46 | |
|
APEI
American Public Education, Inc.
|
BULLISH | $811.84M | 34.27 | 11.2% | 4.9% | $44.89 | |
|
BGS
B&G Foods, Inc.
|
BEARISH | $352.82M | - | -40.9% | -13.6% | $4.41 |
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
9 analysts
Morgan Stanley
2026-02-13
Equal-Weight
Underweight
UBS
2026-01-16
Buy
Neutral
UBS
2026-01-08
Buy
Buy
JP Morgan
2026-01-07
Overweight
Neutral
UBS
2025-09-08
Neutral
Buy
JP Morgan
2025-09-08
Neutral
Overweight
Past News Coverage
Recent headlines mentioning AFYA from our newsroom.
Newest → oldest
No matching news yet.