Afya (AFYA) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: <0.01%
• Average Volume (3M): 84.37K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.71
• Revenue Growth: 1.02%
• EPS Growth: 9.06%
• Country: US
• Employees: 5,260
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.43
• Shares Outstanding: 46,586,056
• 10 Day Avg. Volume: 82,431
• 30 Day Avg. Volume: 84,366
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: 1.33
• 1Y Price Target: $20.00
• Price Target Upside: 28.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $17.50 ▲(12.18% Upside)

Afya's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth, efficient cost management, and strategic initiatives like the share repurchase program highlight its potential for future growth. Technical analysis and valuation are supportive but less impactful, with the stock showing neutral momentum and reasonable valuation metrics.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful product offerings, supporting long-term business sustainability.

Market Expansion

The acquisition enhances Afya's market position and capacity, allowing it to serve more students and strengthen its educational footprint.

Operational Efficiency

Improved operational efficiency and margin expansion reflect effective cost management, enhancing profitability and competitive advantage.

Negative Factors

Decrease in Residency Enrollment

A significant drop in residency enrollment could impact future revenue streams and market positioning in specialized education segments.

Reduced User Engagement

Declining user engagement in Medical Practice Solutions may signal challenges in retaining customers, affecting long-term growth potential.

Increased Liabilities

Rising liabilities could strain financial flexibility, potentially impacting future investment capacity and operational stability.

Afya Business Overview & Revenue Model

Company Description

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. As of December 31, 2021, it operated a network of 46 undergraduate and graduate medical school campuses consisted of 30 undergrad operating units and five approved units; and a network of 2,731 medical school seats that consisted of 2,481 operating seats and 278 approved seats. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

How the Company Makes Money

Afya generates revenue through several key streams, primarily from tuition fees for its educational programs, which include undergraduate and postgraduate courses in medicine and healthcare. The company also earns income from the sale of digital educational materials and subscriptions to its online learning platforms. Additionally, Afya has established strategic partnerships with various institutions and organizations, which help expand its reach and enhance its offerings. The growing emphasis on continuing education in the healthcare field and the increasing demand for qualified healthcare professionals in Brazil further contribute to Afya's revenue growth.

Afya Financial Statement Overview

Summary

Afya's financial health is robust, with strong revenue growth, profitability, and cash flow generation. The company effectively manages its leverage while maintaining high margins and returns, indicative of a well-executed business strategy. Its balance sheet reflects stability with a healthy equity position, and cash flow metrics underscore its strong liquidity profile.

Income Statement

Afya has demonstrated robust growth in total revenue, showcasing a consistent upward trend over the years. The company achieved a gross profit margin of 63.22% and a net profit margin of 19.11% in 2024, indicating strong profitability. EBIT and EBITDA margins are also healthy at 30.63% and 36.86%, respectively, reflecting efficient operational management. Revenue growth rate from 2023 to 2024 is significant at 14.90%, reinforcing its strong market position.

Balance Sheet

Afya maintains a strong balance sheet with a debt-to-equity ratio of 0.74, suggesting prudent leverage management. The return on equity (ROE) is impressive at 14.79% for 2024, demonstrating effective use of shareholders' funds. The equity ratio stands at 48.35%, indicating a solid equity base supporting its assets. The company’s financial stability is evident in its strategic management of liabilities and equity.

Cash Flow

The company's cash flow is robust, with an operating cash flow to net income ratio of 2.27 in 2024, highlighting strong cash-generating capacity. Free cash flow grew by 62.26% from 2023 to 2024, showcasing enhanced liquidity and capacity for reinvestment or debt reduction. The free cash flow to net income ratio is 2.05, underscoring the company's ability to convert income into cash efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.55B	3.30B	2.88B	2.33B	1.72B	1.20B
Gross Profit	2.29B	2.09B	1.77B	1.47B	1.07B	766.54M
EBITDA	1.53B	1.22B	1.11B	856.35M	541.80M	433.11M
Net Income	694.24M	631.51M	386.32M	373.57M	223.33M	292.07M
Balance Sheet
Total Assets	9.24B	8.83B	7.58B	7.20B	6.45B	4.79B
Cash, Cash Equivalents and Short-Term Investments	1.10B	911.01M	553.03M	1.09B	748.56M	1.05B
Total Debt	3.23B	3.17B	2.68B	2.71B	2.16B	1.14B
Total Liabilities	4.60B	4.52B	3.94B	3.95B	3.45B	1.96B
Stockholders Equity	4.60B	4.27B	3.60B	3.20B	2.95B	2.78B
Cash Flow
Free Cash Flow	1.10B	1.30B	798.20M	546.88M	354.07M	233.92M
Operating Cash Flow	1.54B	1.43B	1.04B	843.90M	630.87M	371.51M
Investing Cash Flow	-1.04B	-1.09B	-1.14B	-591.47M	-1.27B	-1.04B
Financing Cash Flow	-108.12M	23.97M	-439.94M	92.94M	364.68M	756.42M

Afya Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFYA, the sentiment is Negative. The current price of 15.6 is below the 20-day moving average (MA) of 15.64, above the 50-day MA of 15.10, and below the 200-day MA of 16.59, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AFYA.

Afya Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRA	78 Outperform	$2.05B	17.82	6.91%	2.79%	4.31%	-1.08%
AFYA	76 Outperform	$1.40B	11.57	15.50%	<0.01%	1.02%	9.06%
UTI	73 Outperform	$1.78B	28.60	20.57%	―	14.56%	127.02%
COUR	70 Neutral	$1.98B	-36.69	-13.31%	―	7.10%	49.18%
UDMY	64 Neutral	$1.07B	-33.86	-13.13%	―	3.93%	63.52%
DAO	58 Neutral	$1.18B	37.20	-3.84%	―	-1.66%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Afya Corporate Events

Afya Limited Reports Strong Q2 2025 Financial Results and Expands Market Presence

On August 13, 2025, Afya Limited announced its financial results for the second quarter and first half of 2025, highlighting a 13.5% year-over-year revenue increase in Q2 to R$919.4 million and a 16.6% rise in adjusted EBITDA to R$400.8 million. The company also reported a significant expansion in its adjusted EBITDA margin and reaffirmed its full-year guidance. Afya’s acquisition of FUNIC, a new campus in Belo Horizonte, adds 60 medical seats, enhancing its market position. The company is also addressing the impacts of new taxation laws and has initiated a share repurchase program, reflecting its robust financial health and strategic confidence.

Afya Limited Launches New Share Repurchase Program

On August 13, 2025, Afya Limited announced the approval of a new share repurchase program by its Board of Directors. The program allows for the repurchase of up to 4,000,000 Class A common shares, starting from August 15, 2025, until December 31, 2026, subject to market conditions. The initiative aims to use repurchased shares for stock option programs, business combinations, and general corporate purposes, enhancing Afya’s strategic flexibility and shareholder value.

Afya Limited Reports Strong Financial Performance for Mid-2025

On August 13, 2025, Afya Limited released its unaudited interim condensed consolidated financial statements for the period ending June 30, 2025. The report highlights a significant increase in revenue and net income compared to the previous year, indicating strong operational performance. The company’s total assets grew, and there was a notable rise in current liabilities, primarily due to increased loans and financing. This financial performance underscores Afya’s robust position in the education sector, potentially enhancing its attractiveness to investors and stakeholders.

Afya Limited Confirms Resolutions and Director Re-appointments at Annual Meeting

On June 24, 2025, Afya Limited announced the successful passing of resolutions during its Annual General Meeting. Key outcomes included the approval of financial statements for the fiscal year ending December 31, 2024, and the re-appointment of four independent directors: João Paulo Seibel de Faria, Vanessa Claro Lopes, Miguel Filisbino Pereira de Paula, and Marcelo Ken Suhara, each for a two-year term. This meeting underscores Afya’s commitment to maintaining strong governance and continuity in its leadership, which is crucial for its strategic positioning in the medical education industry.