Afya Stock Buy Hold or Sell Recommendation

AFYA
 Stock
  

USD 14.60  0.83  5.38%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Afya is 'Strong Buy'. Macroaxis provides Afya buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Afya positions. The advice algorithm takes into account all of Afya's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Afya's buy-and-hold perspective. Please continue to Afya Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Afya and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Afya.

Execute Afya Buy or Sell Advice

The Afya recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Afya. Macroaxis does not own or have any residual interests in Afya or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Afya's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AfyaBuy Afya
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Afya has a Risk Adjusted Performance of 0.1685, Jensen Alpha of 0.2017, Total Risk Alpha of 0.0831, Sortino Ratio of 0.0677 and Treynor Ratio of 0.3728
Our trade advice tool can cross-verify current analyst consensus on Afya and to analyze the company potential to grow in the current economic cycle. To make sure Afya is not overpriced, please confirm all Afya fundamentals, including its total debt, earnings per share, and the relationship between the net income and book value per share . Given that Afya has a price to earning of 33.33 X, we suggest you to validate Afya market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Afya Trading Alerts and Improvement Suggestions

About 33.0% of the company shares are held by company insiders

Afya Returns Distribution Density

The distribution of Afya's historical returns is an attempt to chart the uncertainty of Afya's future price movements. The chart of the probability distribution of Afya stock daily returns describes the distribution of returns around its average expected value. We use Afya price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Afya returns is essential to provide solid investment advice for Afya.
Mean Return0.30Value At Risk-3.55
Potential Upside5.14Standard Deviation2.75
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Afya historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Afya Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Afya or Diversified Consumer Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Afya's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Afya stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.20
β
Beta against NYSE Composite0.78
σ
Overall volatility
2.83
Ir
Information ratio 0.06

Afya Volatility Alert

Afya currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.2. However, we advise investors to further question Afya expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Afya's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Afya's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Afya Fundamentals Vs Peers

Comparing Afya's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Afya's direct or indirect competition across all of the common fundamentals between Afya and the related equities. This way, we can detect undervalued stocks with similar characteristics as Afya or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Afya's fundamental indicators could also be used in its relative valuation, which is a method of valuing Afya by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Afya to competition
FundamentalsAfyaPeer Average
Return On Equity0.12 %(0.31) %
Return On Asset0.06 %(0.14) %
Profit Margin0.16 %(1.27) %
Operating Margin0.29 %(5.51) %
Current Valuation1.61 B16.62 B
Shares Outstanding44.13 M571.82 M
Shares Owned by Insiders33.12 %10.09 %
Shares Owned by Institutions53.22 %39.21 %
Number of Shares Shorted504.15 K4.71 M
Price to Earning33.33 X28.72 X
Price to Book2.25 X9.51 X
Price to Sales0.60 X11.42 X
Revenue1.72 B9.43 B
Gross Profit1.07 B27.38 B
EBITDA584.37 M3.9 B
Net Income223.33 M570.98 M
Cash and Equivalents616.25 M2.7 B
Cash per Share6.85 X5.01 X
Total Debt1.3 B5.32 B
Debt to Equity0.71 %48.70 %
Current Ratio1.33 X2.16 X
Book Value Per Share34.73 X1.93 K
Cash Flow from Operations630.87 M971.22 M
Short Ratio1.24 X4.00 X
Earnings Per Share0.71 X3.12 X
Price to Earnings To Growth12.26 X4.89 X
Target Price16.91
Number of Employees418.84 K
Beta0.89-0.15
Market Capitalization1.35 B19.03 B
Total Asset6.45 B29.47 B
Retained Earnings103.26 M9.33 B
Working Capital914.63 M1.48 B

About Afya Buy or Sell Advice

When is the right time to buy or sell Afya? Buying financial instruments such as Afya Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Afya in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Robots And Drones Thematic Idea Now

Robots And Drones
Robots And Drones Theme
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Robots And Drones Theme or any other thematic opportunities.
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Please continue to Afya Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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Is Afya's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Afya. If investors know Afya will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Afya listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Afya is measured differently than its book value, which is the value of Afya that is recorded on the company's balance sheet. Investors also form their own opinion of Afya's value that differs from its market value or its book value, called intrinsic value, which is Afya's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Afya's market value can be influenced by many factors that don't directly affect Afya's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Afya's value and its price as these two are different measures arrived at by different means. Investors typically determine Afya value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Afya's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.