One-glance verdict
Undervalued
$155.23 our estimate vs market $10.24
Wall Street consensus: $16.63 (-89.3% lower than our fair-value estimate)
93% below our estimate, below the bear case
Fundamentals snapshot
Afya Limited
AFYA · NMS · Consumer Defensive · Education & Training Services
Current price
$10.24
52-week range
$10.02 - $16.16
Market cap
$906.02M
Balance sheet
Stretched
2.76x Stretched
Net debt $394.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 11.9% last year.
- Reward Returns 16.7% on equity, ahead of 50% of its peers.
- Risk Stock trades 90.8% above its 5-year average P/E.
- Risk Net debt grew 23.0% over 3 years.
What this company does
Afya Limited
Afya Limited is a Brazilian company that provides education and digital solutions for doctors and medical students. The money mainly comes from its educational programs, from undergraduate degrees to continuing professional development, and also from subscriptions to its digital tools that help doctors make decisions and manage their practices. This is important because it shows Afya is a comprehensive provider for the healthcare education and technology market in Brazil.
How the company got here
Afya Limited started in 1999 as a small educational group in Brazil, focusing on training future doctors and healthcare professionals. Over the years, it grew by acquiring other educational institutions and expanding its course offerings. A key turning point was its expansion into digital learning, allowing it to reach a much wider audience across Brazil. This strategic shift helped Afya become one of the largest private players in the medical education sector in its home country.
What it actually does
Afya is essentially a big school system for people in the healthcare field in Brazil. Think of it like a specialized university and training center rolled into one. It offers everything from the very first college courses to become a doctor or nurse, to advanced training for practicing doctors who want to specialize or keep their skills sharp. They also provide tools and software to help doctors run their practices more smoothly and make better decisions for their patients.
Undergraduate
This part of Afya is like the traditional college experience, but specifically for health-related careers. It offers degree programs in medicine, dentistry, nursing, and many other health sciences, as well as some non-health fields like business and law. Students pay tuition fees to attend these courses, which form the foundation of their medical or healthcare careers. This segment represents a significant portion of Afya's overall business, providing a steady stream of future healthcare professionals.
Continuing Education
Once someone has finished their initial degree, this segment offers them ways to keep learning and specialize. It includes programs that help doctors prepare for residency exams (the next step after medical school), offers advanced courses in various medical fields, and provides professional development opportunities. These courses can be online or in-person, and doctors pay to enhance their knowledge and skills, ensuring they stay up-to-date in their practice.
Medical Practice Solutions
This segment is all about helping doctors and clinics run their businesses more efficiently and provide better care. Afya offers software that helps manage patient appointments, medical records, and billing. They also provide digital tools, like a subscription-based app, that help doctors make quick decisions at the point of care, offering things like medical calculators and updated treatment guidelines. This business line aims to support healthcare professionals throughout their entire practice lifecycle.
What management is betting on now
Afya's leadership is focused on continuing to grow its digital offerings and expand its reach across Brazil. They see a big opportunity in providing more online courses and digital tools to make education more accessible and convenient. Management is also investing in new technologies to enhance the learning experience and provide more comprehensive solutions for medical practices. The goal is to solidify Afya's position as a leader in medical education and healthcare solutions by embracing innovation and digital transformation.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $155.23 vs current price $10.24
Wall Street consensus is the average analyst price target: $16.63 (-89.3% lower than our fair-value estimate).
Our most-likely fair value is $155.23 a share — about 1,415.9% above today's price of $10.24, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $394.7M. Interest coverage 2.8x.
Net debt
$394.69M
Interest coverage
2.76x
Afya Limited's profit covers its interest bill about 2.8 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
AFYA
BASELINE
Afya Limited
Total debt $582.81M Interest coverage 2.76x This is the baseline the peer rows are being compared against.
Total debt $50.72M Interest coverage -194.67x -100% vs AFYA This peer has almost no interest-payment cushion compared with AFYA.
Total debt $619.04M Interest coverage 38.27x +1,286% vs AFYA Carries about 13.9x more debt cushion than AFYA.
What you should know
The case for and against AFYA
3 Rewards
2 Risks
Rewards
-
Revenue grew 11.9% last year.
-
Returns 16.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 90.8% above its 5-year average P/E.
-
Net debt grew 23.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
6.24x
Forward P/E
5.08x
P/B
0.93x
P/S
0.24x
EV/EBITDA
2.05x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
64.0%
Operating margin
30.6%
Net margin
20.4%
ROE
16.7%
ROA
8.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.63x
Current ratio
2.20x
Quick ratio
2.13x
Total debt
$582.81M
Total cash
$188.12M
Growth
How the business has been compounding
Revenue TTM
$715.16M
Revenue 5Y CAGR
16.7%
EPS TTM
1.64
EPS 5Y CAGR
26.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$286.26M
Free CF TTM
$218.23M
FCF margin
30.5%
Dividend
Shareholder payout
Yield
6.4%
Payout ratio
41.3%
Last ex-div date
2026-03-25