Afya Limited (AFYA) AI Stock Analysis

Afya Limited is a medical education group headquartered in Nova Lima, Brazil. The company serves lifelong medical learners through undergraduate medical schools, residency preparatory programs, graduate degrees, and partnerships with third-party institutions. In addition to campus instruction, Afya provides digital health services through subscription mobile applications and a web portal featuring clinical decision tools, medical calculators, prescriptions, and diagnostic guidance. Its academic scope spans medicine, dentistry, nursing, psychology, and pharmacy, alongside select undergraduate and postgraduate business and professional programs. As of December 31, 2021, Afya operated 46 campuses with 2,731 medical school seats.

Afya grew annual revenue from $1.72B in FY2021 to $3.62B in FY2025, reflecting a 5-year revenue CAGR of 24.7%. Over that span, operating margin widened from 25.6% to 32.8%, and gross margin expanded from 62.1% to 64.5%. Net income reached $737.7M in FY2025, up from $223.3M in FY2021, lifting diluted EPS from $3.80 to $9.80. For the trailing twelve months ended June 30, 2026, revenue stood at $3.83B with an operating margin of 30.6% and net margin of 20.4%. In the quarter ended June 30, 2026, quarterly revenue rose 5.7% year-over-year and quarterly earnings grew 17.6%.

As of June 30, 2026, Afya held $1.00B in cash and short-term investments against total debt of $3.11B, resulting in net debt of $2.11B. Shareholders' equity was $4.88B and total assets were $9.31B, yielding a debt-to-equity ratio of 0.64 and a current ratio of 2.20. In FY2025, the company generated $1.20B in operating cash flow and $1.04B in free cash flow. Capital expenditures were $162.8M, while share buybacks totaled $75.5M.

At a closing price of $14.53, Afya has a market capitalization of $1.29B and an enterprise value of $1.61B. It trades at a trailing P/E of 8.9x and a forward P/E of 7.9x, below the median of its US-listed Consumer Defensive peers of 18.6x and 14.3x, respectively. Its EV/EBITDA of 4.8x also compares to the peer median of 11.7x. Over the past year, Afya returned 2.7%, while the S&P 500 returned 16.8%. Over five years, the stock dropped 23.0% against an 83.0% gain for the index.

Afya pays an annual dividend with a forward rate of $0.66 per share, corresponding to a dividend yield of 4.50%. Its payout ratio is 8.6%, and the company has paid dividends for 2 consecutive years. The last ex-dividend date was March 25, 2026.

Wall Street coverage includes 0 Strong Buy, 2 Buy, 4 Hold, 0 Sell, and 2 Strong Sell recommendations. The mean price target is $17.31, representing 19.1% upside over the last close of $14.53. For FY2026, consensus estimates project EPS of $9.23 on revenue of $3.98B. For FY2027, 6 analysts project EPS of $10.26 and revenue of $4.26B. Afya beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 11, 2026.

This page is an AI-written research summary of Afya Limited (AFYA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AFYA income statement, AFYA balance sheet, AFYA key metrics, AFYA analyst forecast, AFYA chart. See the AFYA stock overview for the latest quote and news.