AFYA Afya Limited - Fundamental Analysis
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AFYA Stock | Fundamental Analysis & Investment Insights
NASDAQ
Consumer Defensive
Education & Training Services
Current Price
Live
$14.07
Analyst Target
$17.96
+27.7%
Upside
52W High
$19.9
52W Low
$13.12
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 14, 2026
Market cap
$1.28B
P/E
9.44
ROE
16.7%
Profit margin
20.1%
Debt/Equity
0.62
Dividend yield
1.6%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
AFYA's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential operational inefficiencies despite solid profitability. The absence of an Altman Z-Score raises concern about default risk, though the company maintains a moderate debt-to-equity ratio. Trading at $14.07, the stock is significantly below its intrinsic value of $43.95 and Graham Number of $18.34, suggesting undervaluation on a defensive basis. However, the bearish technical trend and negative 1-year price performance undermine momentum. Analysts maintain a 'hold' recommendation, reflecting cautious optimism.
Key Strengths
High gross and operating margins (64.98% and 29.88%) indicate strong pricing power and cost control
Robust earnings growth of 29.80% YoY and 58.8% Q/Q EPS growth signal strong top-line and bottom-line momentum
Attractive valuation metrics: P/E of 9.44 and Price/Sales of 0.35 are well below sector average (28.83 and 1.0+)
Low payout ratio (16.73%) and stable dividend yield (1.60%) suggest room for future dividend increases
Consistent earnings beat history (3/4 last quarters, average +16.97%) reflects strong execution and analyst confidence
Key Risks
Piotroski F-Score of 4/9 is below the threshold for financial stability, indicating potential red flags in profitability, leverage, or liquidity
Current ratio of 0.98 and quick ratio of 0.95 suggest borderline liquidity, raising short-term solvency concerns
Technical trend score of 0/100 reflects strong bearish momentum, with 1-year return down 17.9% and 52-week high at $19.90
No available data on Free Cash Flow, Operating Cash Flow, Total Cash, or Total Debt limits assessment of financial flexibility
Insider sentiment at 40/100 and lack of clear insider buying patterns suggest limited confidence from management
AI Fair Value Estimate
Based on comprehensive analysis
$43.95
+212.4% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
63
Strong
85
78
70
45
35
AI Verdict
neutral
Key drivers: Strong profitability and growth metrics, Significant undervaluation relative to intrinsic value, Weak financial health per Piotroski F-Score, Bearish technical momentum, Lack of Altman Z-Score data
Confidence
78%
Value
85/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 9.44 is well below sector average of 28.83
- Price/Sales of 0.35 is extremely low, indicating deep undervaluation
- Graham Number ($18.34) and Intrinsic Value ($43.95) both exceed current price ($14.07)
- Forward P/E of 7.63 suggests strong future earnings growth is priced in
Watchpoints
- No PEG ratio available, limiting growth-adjusted valuation analysis
- Lack of EV/EBITDA and EV/Revenue data limits enterprise value assessment
Future
78/100
Ref Growth rates
Positives
- Earnings growth of 29.80% YoY and 58.8% Q/Q EPS growth indicate strong momentum
- Recent quarters have consistently beaten estimates with an average surprise of +16.97%
- Revenue growth of 10.40% YoY exceeds sector average of 9.45%
- Forward P/E of 7.63 implies high growth expectations are already priced in
Watchpoints
- No Q/Q revenue growth data available
- Most recent Q/Q EPS growth is -8.4%, indicating a potential near-term slowdown
Past
70/100
Ref Historical trends
Positives
- 25-quarter earnings track record shows consistent beat history (18/25 quarters positive)
- Multiple quarters with surprise above +15% (e.g., +21.1%, +17.5%)
- Strong historical ROE of 16.72% and ROA of 8.35% reflect efficient capital use
Watchpoints
- Several quarters with negative surprises (e.g., -33.3%, -41.0%, -21.7%) indicate volatility
- 2024 Q4 and 2021 Q2 saw significant misses, suggesting execution risk
Health
45/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.62 is moderate and below sector average of 1.71
- Profit margin of 20.08% is strong and above sector average of -1.11%
Watchpoints
- Piotroski F-Score of 4/9 is below the stable threshold (4-6), indicating weak financial health
- Current and quick ratios below 1.0 suggest liquidity pressure
- No Altman Z-Score available, which is a critical red flag for default risk
Dividend
35/100
Ref Yield, Payout
Positives
- Dividend yield of 1.60% is modest but stable
- Payout ratio of 16.73% is very low, indicating sustainability
Watchpoints
- Dividend strength score of 25/100 reflects limited growth and low yield
- No 5-year average yield or ex-dividend date data available
- No clear dividend growth trend observed
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$14.07
Analyst Target
$17.96
Upside/Downside
+27.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AFYA and closest competitors.
Updated 2026-02-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AFYA
Afya Limited
Primary
|
-39.7% | +5.1% | -17.9% | -6.6% | -3.4% | -8.8% |
|
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
9.44
Forward P/E
7.63
PEG Ratio
N/A
P/B Ratio
1.4
P/S Ratio
0.35
EV/Revenue
0.91
EV/EBITDA
2.35
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
9.44
This Stock
vs
28.82
Sector Avg
-67.2%
(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 | 9.44 | 16.7% | 20.1% | $14.07 | |
|
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.