Recent News
On August 13, 2025 Afya announced second-quarter and first-half 2025 results alongside a Board-approved share repurchase program that may cover up to 4,000,000 Class A shares beginning August 15, 2025 through December 31, 2026. The same announcement noted the closing and integration of an acquisition that adds 60 medical seats and reiterated full-year guidance and cash return priorities.
Technical Analysis
ADX at 15.91 indicates no established trend; price action currently behaves more like a range-bound market than a trending one. That lack of trend tempers the conviction of directional signals while leaving room for range-bound sellers to exert pressure.
Directional indicators show bearish bias: DI+ at 17.89 registered a peak-and-reversal, which indicates DI+ decreasing and therefore a bearish directional shift; DI- at 18.08 registered a dip-and-reversal, which indicates DI- increasing and therefore additional bearish pressure. Together, those moves favor downside over the immediate horizon.
MACD sits at -0.17 with a signal line at -0.14 and a peak-and-reversal in the MACD trend. The MACD below its signal line and a peak-and-reversal trend denote weakening momentum and bearish momentum pressure.
MRO reads 5.5 and trends down. A positive MRO implies price sits above the calculated target and therefore carries potential toward a decrease; the modest absolute value and decreasing trend indicate only limited momentum behind that potential.
RSI at 43.92 with a peak-and-reversal indicates short-term momentum turned lower but has not reached oversold territory. That level allows further downward movement without a technical oversold bounce being compelled.
Price sits at $14.48, below the 20-day average ($14.77), the 50-day average ($15.24) and materially below the 200-day average ($16.57). The 12-day EMA shows a peak-and-reversal, reinforcing short-term weakness. Price trades around the lower Bollinger band: the 1× lower band at $14.51, the 2× lower band at $14.24; the close near those values implies limited immediate downside cushion but proximity to potential short-term support near $14.24.
Ichimoku short-term lines show Tenkan-Sen at $14.78 above the close and Kijun-Sen at $15.31 further above; those levels act as near-term resistance. The SuperTrend upper band at $15.44 also registers overhead resistance. Volume sits roughly in line with short- and mid-term averages, so no breakout-supporting volume currently appears.
Fundamental Analysis
Total revenue for the period registers at $919,400,000 with YoY revenue growth of -3.58% and QoQ revenue growth of -1.18%, indicating modest contraction in top-line activity year-over-year and quarter-over-quarter. Gross profit reached $576,693,000 and gross margin measured 62.73%.
Operating income tallied $284,930,000 and EBIT $305,848,000, yielding an EBIT margin of 35.87%. That EBIT margin exceeds the industry peer range high of 25.94% from the available peer comparisons. QoQ the EBIT margin fell by 13.50%, while YoY it improved by 19.63%.
Adjusted EBITDA stands at $400,546,000 with an EBITDA margin consistent with the strong operating margin profile. Net income reached $172,332,000. EPS came in at $2.27 versus an estimate of $2.02, producing an EPS surprise of +$0.25 or +12.38%.
Cash generation shows strength: operating cash flow of $307,746,000 and free cash flow of $178,886,000 produce a free cash flow yield of 12.56%. Free cash flow covers net income at about 104%. Cash and short-term investments total $1,099,107,000, providing liquidity to fund repurchases and operations.
Leverage and coverage portray elevated financial obligation: total debt at $3,225,058,000 and net debt of $1,114,860,000 produce debt-to-EBITDA of 7.60x and an interest coverage ratio of 2.43x. Debt metrics indicate higher leverage relative to operating earnings and tighter interest coverage.
Valuation multiples show a trailing P/E of 7.12 and a price-to-book ratio of 0.31. The price-to-book ratio remains below the industry peer mean of 2.57 and median of 1.73 where peer comparisons exist. Forward EPS of $0.4225 produces a forward P/E of 42.61, reflecting a material step-up in next-period multiple driven by lower forward EPS expectations.
Operational efficiency measures: asset turnover sits at 0.100, return on equity at 3.75% and return on assets at 1.88%. Cash conversion ratios and margins indicate strong cash conversion in the period measured, but returns on invested capital remain conservative relative to margin levels because of large intangible and invested capital balances.
WMDST values the stock as under-valued given current earnings power, margin profile and cash generation; valuation contrasts (trailing P/E, low P/B and high free cash flow yield) drive that determination despite elevated leverage and muted near-term revenue trends.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-13 |
| NEXT REPORT DATE: | 2025-11-06 |
| CASH FLOW | Begin Period Cash Flow | $ 1.2 B |
| Operating Cash Flow | $ 307.7 M | |
| Capital Expenditures | $ -128.86 M | |
| Change In Working Capital | $ -110.39 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -55.78 M | |
| End Period Cash Flow | $ 1.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 919.4 M | |
| Forward Revenue | $ 51.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 342.7 M | |
| Depreciation | $ 48.8 M | |
| Depreciation and Amortization | $ 94.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 634.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 576.7 M | |
| EBITDA | $ 400.5 M | |
| EBIT | $ 305.8 M | |
| Operating Income | $ 284.9 M | |
| Interest Income | $ 39.5 M | |
| Interest Expense | $ 111.8 M | |
| Net Interest Income | $ -92.76 M | |
| Income Before Tax | $ 194.0 M | |
| Tax Provision | $ 17.5 M | |
| Tax Rate | 9.0 % | |
| Net Income | $ 172.3 M | |
| Net Income From Continuing Operations | $ 194.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.02 | |
| EPS Actual | $ 2.27 | |
| EPS Difference | $ 0.25 | |
| EPS Surprise | 12.376 % | |
| Forward EPS | $ 0.42 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 9.2 B | |
| Intangible Assets | $ 5.6 B | |
| Net Tangible Assets | $ -987.52 M | |
| Total Current Assets | $ 1.9 B | |
| Cash and Short-Term Investments | $ 1.1 B | |
| Cash | $ 1.1 B | |
| Net Receivables | $ 679.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 117.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 333.3 M | |
| Short-Term Debt | $ 1.2 B | |
| Total Current Liabilities | $ 2.0 B | |
| Net Debt | $ 1.1 B | |
| Total Debt | $ 3.2 B | |
| Total Liabilities | $ 4.6 B | |
| EQUITY | ||
| Total Equity | $ 4.6 B | |
| Retained Earnings | $ 2.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 50.90 | |
| Shares Outstanding | 90.811 M | |
| Revenue Per-Share | $ 10.18 | |
| VALUATION | Market Capitalization | $ 1.4 B |
| Enterprise Value | $ 3.6 B | |
| Enterprise Multiple | 8.363 | |
| Enterprise Multiple QoQ | 8.943 % | |
| Enterprise Multiple YoY | 165.624 % | |
| Enterprise Multiple IPRWA | high: 206.444 mean: 52.953 median: 47.277 AFYA: 8.363 low: -197.551 |
|
| EV/R | 3.861 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.01 | |
| Asset To Liability | 2.008 | |
| Debt To Capital | 0.412 | |
| Debt To Assets | 0.349 | |
| Debt To Assets QoQ | -0.652 % | |
| Debt To Assets YoY | 1576.753 % | |
| Debt To Assets IPRWA | high: 1.03 AFYA: 0.349 mean: 0.331 median: 0.32 low: 0.001 |
|
| Debt To Equity | 0.702 | |
| Debt To Equity QoQ | -3.563 % | |
| Debt To Equity YoY | 1608.425 % | |
| Debt To Equity IPRWA | high: 4.335 mean: 1.164 median: 1.004 AFYA: 0.702 low: -1.392 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.31 | |
| Price To Book QoQ | -16.767 % | |
| Price To Book YoY | -22.38 % | |
| Price To Book IPRWA | high: 16.081 mean: 2.571 median: 1.731 AFYA: 0.31 low: -7.254 |
|
| Price To Earnings (P/E) | 7.119 | |
| Price To Earnings QoQ | 28.794 % | |
| Price To Earnings YoY | -7.474 % | |
| Price To Earnings IPRWA | high: 272.225 mean: 63.731 median: 45.616 AFYA: 7.119 low: -187.532 |
|
| PE/G Ratio | -0.245 | |
| Price To Sales (P/S) | 1.549 | |
| Price To Sales QoQ | -11.463 % | |
| Price To Sales YoY | -21.051 % | |
| Price To Sales IPRWA | high: 28.322 mean: 5.837 median: 3.432 AFYA: 1.549 low: 0.067 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 42.609 | |
| Forward PE/G | -1.466 | |
| Forward P/S | 27.99 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 8.318 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.1 | |
| Asset Turnover Ratio QoQ | -3.995 % | |
| Asset Turnover Ratio YoY | -3.848 % | |
| Asset Turnover Ratio IPRWA | high: 1.071 median: 0.385 mean: 0.338 AFYA: 0.1 low: 0.001 |
|
| Receivables Turnover | 1.397 | |
| Receivables Turnover Ratio QoQ | -8.008 % | |
| Receivables Turnover Ratio YoY | -2.4 % | |
| Receivables Turnover Ratio IPRWA | high: 12.053 mean: 4.142 median: 2.957 AFYA: 1.397 low: 0.065 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 65.299 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -7.17 | |
| CapEx To Revenue | -0.14 | |
| CapEx To Depreciation | -1.361 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 5.6 B | |
| Net Invested Capital | $ 6.8 B | |
| Invested Capital | $ 6.8 B | |
| Net Tangible Assets | $ -987.52 M | |
| Net Working Capital | $ -128.22 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.546 | |
| Current Ratio | 0.936 | |
| Current Ratio QoQ | -34.158 % | |
| Current Ratio YoY | -36.406 % | |
| Current Ratio IPRWA | high: 8.204 mean: 1.404 AFYA: 0.936 median: 0.838 low: 0.225 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.597 | |
| Cost Of Debt | 3.846 % | |
| Interest Coverage Ratio | 2.429 | |
| Interest Coverage Ratio QoQ | -33.393 % | |
| Interest Coverage Ratio YoY | -22.438 % | |
| Interest Coverage Ratio IPRWA | high: 34.501 mean: 5.041 median: 3.159 AFYA: 2.429 low: -51.12 |
|
| Operating Cash Flow Ratio | 0.118 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 105.727 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.386 % | |
| Revenue Growth | -1.811 % | |
| Revenue Growth QoQ | -117.603 % | |
| Revenue Growth YoY | -357.61 % | |
| Revenue Growth IPRWA | high: 17.881 % median: 4.575 % mean: 3.504 % AFYA: -1.811 % low: -32.565 % |
|
| Earnings Growth | -29.063 % | |
| Earnings Growth QoQ | -155.484 % | |
| Earnings Growth YoY | 76.965 % | |
| Earnings Growth IPRWA | high: 250.0 % mean: -19.312 % median: -19.556 % AFYA: -29.063 % low: -291.304 % |
|
| MARGINS | ||
| Gross Margin | 62.725 % | |
| Gross Margin QoQ | -10.155 % | |
| Gross Margin YoY | 2.618 % | |
| Gross Margin IPRWA | high: 88.057 % AFYA: 62.725 % mean: 28.065 % median: 27.838 % low: -9.108 % |
|
| EBIT Margin | 35.873 % | |
| EBIT Margin QoQ | -13.499 % | |
| EBIT Margin YoY | 19.632 % | |
| EBIT Margin IPRWA | AFYA: 35.873 % high: 25.937 % mean: 7.134 % median: 4.905 % low: -48.909 % |
|
| Return On Sales (ROS) | 31.023 % | |
| Return On Sales QoQ | -25.194 % | |
| Return On Sales YoY | 3.458 % | |
| Return On Sales IPRWA | AFYA: 31.023 % high: 25.937 % mean: 8.027 % median: 6.654 % low: -49.228 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 178.9 M | |
| Free Cash Flow Yield | 12.561 % | |
| Free Cash Flow Yield QoQ | -49.518 % | |
| Free Cash Flow Yield YoY | -2.681 % | |
| Free Cash Flow Yield IPRWA | AFYA: 12.561 % high: 10.465 % mean: 1.637 % median: 1.538 % low: -16.999 % |
|
| Free Cash Growth | -56.116 % | |
| Free Cash Growth QoQ | -158.832 % | |
| Free Cash Growth YoY | 52.142 % | |
| Free Cash Growth IPRWA | high: 390.254 % AFYA: -56.116 % mean: -64.727 % median: -66.168 % low: -877.035 % |
|
| Free Cash To Net Income | 1.038 | |
| Cash Flow Margin | 25.735 % | |
| Cash Flow To Earnings | 1.373 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.878 % | |
| Return On Assets QoQ | -33.143 % | |
| Return On Assets YoY | -7.76 % | |
| Return On Assets IPRWA | high: 5.204 % AFYA: 1.878 % mean: 1.023 % median: 0.951 % low: -16.328 % |
|
| Return On Capital Employed (ROCE) | 4.564 % | |
| Return On Equity (ROE) | 0.037 | |
| Return On Equity QoQ | -34.527 % | |
| Return On Equity YoY | -5.662 % | |
| Return On Equity IPRWA | high: 0.111 AFYA: 0.037 median: 0.025 mean: 0.024 low: -0.486 |
|
| DuPont ROE | 3.831 % | |
| Return On Invested Capital (ROIC) | 4.407 % | |
| Return On Invested Capital QoQ | -17.703 % | |
| Return On Invested Capital YoY | -110.357 % | |
| Return On Invested Capital IPRWA | high: 7.951 % AFYA: 4.407 % median: 1.954 % mean: 1.535 % low: -22.946 % |
|