Overall Score

Profitability Returns

AFYA continues to generate solid returns with ROIC at 12.7% and ROE at 16.0%, indicating a durable earnings engine.

Operating margins remain healthy, with EBIT margin at 36.8% and EBITDA margin at 44.3%.

Gross margin is still strong at 64.3%, supporting pricing power and a differentiated education platform.

Balance Sheet Cash Flow

Leverage remains manageable with net debt to EBITDA at 1.1x and debt to equity at 0.67x.

Liquidity is adequate, with a current ratio of 1.78x and cash ratio of 1.07x.

Cash generation is solid, with free cash flow yield at 18.8% and operating cash flow conversion remaining strong.

Competitive Positioning

AFYA's high gross margin and strong operating margins suggest a differentiated position in medical education.

The business continues to convert revenue efficiently, with asset turnover at 0.40x and fixed asset turnover at 2.38x.

Intangible assets remain significant at 57.9% of total assets, consistent with a moat tied to brand, curriculum, and institutional assets.