Recent News
On November 12, 2025 Afya released third-quarter and nine-month results reporting 3Q25 revenue of R$928.5 million (up 10.4% YoY) and Adjusted EBITDA of R$398.9 million with an Adjusted EBITDA margin of 43.0%. On November 12, 2025 Zacks and Nasdaq coverage noted an EPS beat for the quarter. On November 4, 2025 multiple brokerages published an average analyst recommendation of “Hold” with a one‑year consensus target near $18.20. In early September 2025 several broker reports reported rating changes and target revisions, including upgrades by UBS and coverage updates by major houses.
Technical Analysis
Directional indicators show no established trend: ADX at 18.8 indicates trend weakness. DI+ registered a peak-and-reversal, which signals a bearish shift in directional strength; DI- is decreasing, a bullish sign, leaving directional forces mixed and favoring range-bound behavior until ADX confirms a stronger trend.
MACD reads 0.10 with the MACD line above the signal (0.02) and an increasing MACD_trend; the MACD crossing above the signal line represents bullish momentum and supports near-term upside pressure on price.
MRO at 15.84 (positive and increasing) implies the price currently sits above the model target and therefore carries potential to correct downward; the magnitude suggests moderate mean-reversion pressure that could cap rallies unless other momentum indicators accelerate.
RSI at 49.43 and rising sits near neutral, indicating developing buying interest without overbought conditions; this aligns with short-term momentum building but not yet stretched.
Price sits at $15.20 above short-term averages (20-day $14.91, 50-day $14.82, 12-day EMA $14.97) and below the 200-day average ($16.36). That placement supports near-term strength while the 200-day average presents a medium-term resistance zone. Ichimoku components place price between Senkou A ($15.08) and Senkou B ($15.35), reflecting a neutral cloud environment; the span constrains directional conviction.
Bollinger bands place the security comfortably inside the 1x standard deviation range (lower $14.65, upper $15.16), consistent with contained volatility. SuperTrend lower support sits at $14.47, and 10/50/200-day volume averages show recent volumes slightly below longer-term norms, reducing impulse risk for breakouts.
Fundamental Analysis
Total revenue reached $928,505,000 with operating income $277,360,000 and EBIT $302,005,000. EBIT margin stands at 32.53%, which sits above the industry peer mean and above the industry peer high of 28.543%. Operating margin registers 29.87%, also above the industry peer mean. Margin strength supports the valuation gap highlighted below.
Net income totaled $155,167,000 and EPS came in at $2.08 versus an estimate of $1.77, yielding an EPS surprise of +17.51%. Forward EPS equals $0.4225, producing a forward P/E of 37.24 versus a trailing P/E of 7.23; the divergence reflects lower near-term consensus earnings expectations relative to trailing results.
Free cash flow reached $428,085,000 with a free-cash-flow yield of 31.39%, a level above the industry peer mean and above the industry peer high of 14.006%. Cash on hand totaled $996,826,000 while net debt measured $916,841,000. Interest coverage stood at 2.49x, enabling interest obligations but at a modest cushion.
Balance-sheet and liquidity metrics show a current ratio of 0.98 (below the industry peer mean of 1.254) and a cash ratio of 0.55. Debt-to-equity at 0.63 falls below the industry peer mean; debt-to-EBITDA at 7.50 indicates material leverage against earnings. Asset turnover sits at 0.10, below the industry peer mean, which constrains top-line efficiency.
Growth reads mixed: revenue growth measures 0.99% over the reported period while year-over-year revenue growth shows -74.38% on the YoY field; earnings growth YoY registers +0.88%. Gross margin at 63.39% and adjusted EBITDA margin (per filings) expanded materially, underlining strong operating profitability despite growth inconsistencies.
Valuation context: WMDST values the stock as under-valued. Trailing P/E of 7.23 and a P/B of 0.29 indicate market pricing below book and relative to earnings, while the unusually high free-cash-flow yield supports a value case. Leverage and mixed top-line growth temper the valuation argument and merit continued monitoring.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-12 |
| NEXT REPORT DATE: | 2026-02-11 |
| CASH FLOW | Begin Period Cash Flow | $ 1.1 B |
| Operating Cash Flow | $ 506.2 M | |
| Capital Expenditures | $ -78.08 M | |
| Change In Working Capital | $ 73.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -102.28 M | |
| End Period Cash Flow | $ 996.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 928.5 M | |
| Forward Revenue | $ 57.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 339.9 M | |
| Depreciation | $ 49.3 M | |
| Depreciation and Amortization | $ 94.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 651.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 588.6 M | |
| EBITDA | $ 396.7 M | |
| EBIT | $ 302.0 M | |
| Operating Income | $ 277.4 M | |
| Interest Income | $ 57.0 M | |
| Interest Expense | $ 121.4 M | |
| Net Interest Income | $ -98.82 M | |
| Income Before Tax | $ 180.6 M | |
| Tax Provision | $ 21.2 M | |
| Tax Rate | 11.748 % | |
| Net Income | $ 155.2 M | |
| Net Income From Continuing Operations | $ 180.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.77 | |
| EPS Actual | $ 2.08 | |
| EPS Difference | $ 0.31 | |
| EPS Surprise | 17.514 % | |
| Forward EPS | $ 0.42 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 9.2 B | |
| Intangible Assets | $ 5.6 B | |
| Net Tangible Assets | $ -828.65 M | |
| Total Current Assets | $ 1.8 B | |
| Cash and Short-Term Investments | $ 996.8 M | |
| Cash | $ 996.8 M | |
| Net Receivables | $ 671.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 123.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 249.1 M | |
| Short-Term Debt | $ 916.8 M | |
| Total Current Liabilities | $ 1.8 B | |
| Net Debt | $ 916.8 M | |
| Total Debt | $ 3.0 B | |
| Total Liabilities | $ 4.4 B | |
| EQUITY | ||
| Total Equity | $ 4.7 B | |
| Retained Earnings | $ 2.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 52.33 | |
| Shares Outstanding | 90.698 M | |
| Revenue Per-Share | $ 10.24 | |
| VALUATION | Market Capitalization | $ 1.4 B |
| Enterprise Value | $ 3.3 B | |
| Enterprise Multiple | 8.424 | |
| Enterprise Multiple QoQ | 0.727 % | |
| Enterprise Multiple YoY | 288.879 % | |
| Enterprise Multiple IPRWA | high: 190.244 median: 48.181 AFYA: 8.424 mean: -0.158 low: -219.035 |
|
| EV/R | 3.599 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.936 | |
| Asset To Liability | 2.088 | |
| Debt To Capital | 0.385 | |
| Debt To Assets | 0.324 | |
| Debt To Assets QoQ | -7.256 % | |
| Debt To Assets YoY | 9284.638 % | |
| Debt To Assets IPRWA | high: 0.956 mean: 0.325 AFYA: 0.324 median: 0.32 low: 0.004 |
|
| Debt To Equity | 0.627 | |
| Debt To Equity QoQ | -10.676 % | |
| Debt To Equity YoY | 8473.735 % | |
| Debt To Equity IPRWA | high: 2.466 mean: 1.056 median: 0.939 AFYA: 0.627 low: -1.645 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.287 | |
| Price To Book QoQ | -7.274 % | |
| Price To Book YoY | -20.753 % | |
| Price To Book IPRWA | high: 27.592 mean: 3.578 median: 1.785 AFYA: 0.287 low: -9.335 |
|
| Price To Earnings (P/E) | 7.228 | |
| Price To Earnings QoQ | 1.538 % | |
| Price To Earnings YoY | -8.095 % | |
| Price To Earnings IPRWA | high: 517.132 mean: 79.329 median: 64.535 AFYA: 7.228 low: -80.57 |
|
| PE/G Ratio | -0.864 | |
| Price To Sales (P/S) | 1.469 | |
| Price To Sales QoQ | -5.194 % | |
| Price To Sales YoY | -17.103 % | |
| Price To Sales IPRWA | high: 28.774 mean: 6.125 median: 4.136 AFYA: 1.469 low: 0.079 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 37.237 | |
| Forward PE/G | -4.449 | |
| Forward P/S | 23.787 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.269 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.101 | |
| Asset Turnover Ratio QoQ | 0.579 % | |
| Asset Turnover Ratio YoY | -0.758 % | |
| Asset Turnover Ratio IPRWA | high: 0.945 median: 0.397 mean: 0.335 AFYA: 0.101 low: 0.001 |
|
| Receivables Turnover | 1.375 | |
| Receivables Turnover Ratio QoQ | -1.574 % | |
| Receivables Turnover Ratio YoY | -6.184 % | |
| Receivables Turnover Ratio IPRWA | high: 9.084 mean: 4.358 median: 2.872 AFYA: 1.375 low: 0.147 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 66.343 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -11.195 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -75.518 % | |
| Cash Conversion Cycle Days IPRWA | high: 132.972 median: 15.133 mean: 11.594 AFYA: -11.195 low: -85.326 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -24.436 | |
| CapEx To Revenue | -0.084 | |
| CapEx To Depreciation | -1.582 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 5.7 B | |
| Net Invested Capital | $ 6.7 B | |
| Invested Capital | $ 6.7 B | |
| Net Tangible Assets | $ -828.65 M | |
| Net Working Capital | $ -38.00 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.554 | |
| Current Ratio | 0.979 | |
| Current Ratio QoQ | 4.554 % | |
| Current Ratio YoY | -38.65 % | |
| Current Ratio IPRWA | high: 6.656 mean: 1.254 AFYA: 0.979 median: 0.832 low: 0.014 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.499 | |
| Cost Of Debt | 3.455 % | |
| Interest Coverage Ratio | 2.488 | |
| Interest Coverage Ratio QoQ | 2.464 % | |
| Interest Coverage Ratio YoY | 0.869 % | |
| Interest Coverage Ratio IPRWA | high: 30.491 AFYA: 2.488 mean: 1.983 median: 1.798 low: -59.14 |
|
| Operating Cash Flow Ratio | 0.096 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 77.538 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.552 % | |
| Revenue Growth | 0.99 % | |
| Revenue Growth QoQ | -154.666 % | |
| Revenue Growth YoY | -74.379 % | |
| Revenue Growth IPRWA | high: 14.194 % mean: 2.891 % median: 2.066 % AFYA: 0.99 % low: -22.095 % |
|
| Earnings Growth | -8.37 % | |
| Earnings Growth QoQ | -71.2 % | |
| Earnings Growth YoY | 0.88 % | |
| Earnings Growth IPRWA | high: 131.373 % mean: -6.621 % AFYA: -8.37 % median: -11.602 % low: -234.091 % |
|
| MARGINS | ||
| Gross Margin | 63.391 % | |
| Gross Margin QoQ | 1.062 % | |
| Gross Margin YoY | 3.12 % | |
| Gross Margin IPRWA | high: 87.689 % AFYA: 63.391 % mean: 27.876 % median: 27.141 % low: -9.25 % |
|
| EBIT Margin | 32.526 % | |
| EBIT Margin QoQ | -9.33 % | |
| EBIT Margin YoY | 19.13 % | |
| EBIT Margin IPRWA | AFYA: 32.526 % high: 28.543 % mean: 5.392 % median: 1.971 % low: -105.324 % |
|
| Return On Sales (ROS) | 29.872 % | |
| Return On Sales QoQ | -3.71 % | |
| Return On Sales YoY | 9.409 % | |
| Return On Sales IPRWA | AFYA: 29.872 % high: 27.891 % mean: 7.937 % median: 6.252 % low: -43.781 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 428.1 M | |
| Free Cash Flow Yield | 31.394 % | |
| Free Cash Flow Yield QoQ | 149.932 % | |
| Free Cash Flow Yield YoY | 55.254 % | |
| Free Cash Flow Yield IPRWA | AFYA: 31.394 % high: 14.006 % mean: 1.536 % median: 1.231 % low: -18.788 % |
|
| Free Cash Growth | 139.306 % | |
| Free Cash Growth QoQ | -348.246 % | |
| Free Cash Growth YoY | 196.863 % | |
| Free Cash Growth IPRWA | high: 558.205 % AFYA: 139.306 % mean: -7.215 % median: -48.314 % low: -423.827 % |
|
| Free Cash To Net Income | 2.759 | |
| Cash Flow Margin | 18.679 % | |
| Cash Flow To Earnings | 1.118 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.684 % | |
| Return On Assets QoQ | -10.33 % | |
| Return On Assets YoY | 16.218 % | |
| Return On Assets IPRWA | high: 7.577 % AFYA: 1.684 % median: 0.39 % mean: 0.32 % low: -22.496 % |
|
| Return On Capital Employed (ROCE) | 4.088 % | |
| Return On Equity (ROE) | 0.033 | |
| Return On Equity QoQ | -12.803 % | |
| Return On Equity YoY | 11.99 % | |
| Return On Equity IPRWA | high: 0.378 AFYA: 0.033 mean: 0.015 median: 0.011 low: -0.391 |
|
| DuPont ROE | 3.322 % | |
| Return On Invested Capital (ROIC) | 4.002 % | |
| Return On Invested Capital QoQ | -9.19 % | |
| Return On Invested Capital YoY | -115.467 % | |
| Return On Invested Capital IPRWA | high: 8.725 % AFYA: 4.002 % median: 0.766 % mean: 0.597 % low: -22.633 % |
|