Recent News
March 12, 2026 — Board approved a cash dividend of R$307.4 million, representing 40% of consolidated net income for the year ended December 31, 2025, payable in U.S. dollars on April 6, 2026. February 6, 2026 — Company announced an increase in medical seats at the Afya Abaetetuba campus, expanding undergraduate capacity.
Technical Analysis
ADX at 21.69 signals an emerging trend strength, supporting a near-term directional bias for price movement rather than a clear long-term trend.
DI+ at 21.58 and increasing indicates bullish directional pressure; DI- at 17.13 and decreasing reinforces that bullish directional momentum for the immediate horizon.
MACD at 0.17, increasing and above its signal line (-0.01), produces a bullish momentum signal that aligns with the emerging trend strength and favors upward price impulses near term.
MRO at -12.21 (negative) indicates the price sits below the model target, implying upward potential toward valuation anchors if momentum sustains.
RSI at 50.9 and increasing shows momentum shifting from neutral toward accumulation, consistent with other short-term bullish indicators.
Price relationships: closing price $15.16 sits above the 20-day average ($14.37) and near the 200-day average ($15.08); the 12-day EMA trend shows price momentum to the upside, supporting a constructive short-term price bias while the 52-week range ($13.00–$19.90) frames available upside.
Fundamental Analysis
Profitability and margins present strength: EBIT $302,005,000 and EBITDA $396,662,000. EBIT margin stands at 32.53%, up 19.13% year-over-year and down 9.33% quarter-over-quarter, and sits above the industry peer mean (5.39%) and above the industry peer high (28.54%). Operating margin stands at 29.87% with year-over-year improvement of 9.41% and a quarter-over-quarter decline of 3.71%.
Cash generation remains robust: operating cash flow $506,167,000, free cash flow $428,085,000 and free cash flow yield 31.39% year-over-year growth of 55.25%. Cash and short-term investments total $996,826,000 while net debt equals $916,841,000, producing a net cash-like liquidity posture when weighted against cash generation.
Capital structure and leverage show moderate leverage: total debt $2,974,572,000, debt-to-assets 32.38% roughly in line with the industry peer mean (32.28%), debt-to-EBITDA about 7.50x, and interest coverage near 2.49x. Cost of debt runs about 3.46%, leaving interest burden manageable but highlighting sensitivity to earnings trends.
Top-line and growth metrics vary by horizon: total revenue $928,505,000; reported revenue growth year-over-year registers -74.38% while an alternate growth field shows 0.99% (labels differ within the provided data); quarter-over-quarter revenue change presents as -154.67%. Earnings per share actual $2.25 exceeded estimate $1.87 by $0.38, producing a 20.32% EPS surprise; forward EPS shows compression with a forward P/E of 37.24 versus a trailing P/E of 7.23.
Balance-sheet efficiency: asset turnover at 0.10 lags the industry peer mean (0.33), while cash conversion cycle at -11.20 days compares favorably to the industry peer mean (11.59 days), shortening working-capital needs. Return on equity at 3.27% and return on assets at 1.68% improved year-over-year but remain modest in absolute terms.
Valuation context: WMDST values the stock as under-valued. Market multiples show P/B at 0.29, below the industry peer mean (3.65) and industry peer median (1.78), while P/S at 1.47 and forward P/E at 37.24 reflect mixed signals between current earnings power and forward expectations. High free cash flow yield and elevated margins anchor the under-valued call despite leverage and top-line moderation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2026-03-12 |
| NEXT REPORT DATE: | 2026-06-11 |
| 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 | $ 70.2 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 | $ 1.87 | |
| EPS Actual | $ 2.25 | |
| EPS Difference | $ 0.38 | |
| EPS Surprise | 20.321 % | |
| Forward EPS | $ 0.52 | |
| 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: -0.197 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 AFYA: 0.324 mean: 0.323 median: 0.309 low: 0.0 |
|
| 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: 1.047 median: 0.879 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: 3.653 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: 78.749 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: 10.974 mean: 4.401 median: 2.904 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: 14.524 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: 1.256 AFYA: 0.979 median: 0.832 low: 0.004 |
|
| 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: 1.758 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: 1.992 % 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: -6.187 % 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: 25.598 % 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: 5.393 % median: 1.203 % low: -43.522 % |
|
| 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: 5.889 % 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: -7.22 % median: -49.804 % 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: 0.355 % 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 % |
|