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AFYA

9/9 Score

Afya Limited

Analysis Date: February 16, 2026

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. As of December 31, 2021, it operated a network of 46 undergraduate and graduate medical school campuses consisted of 30 undergrad operating units and five approved units; and a network of 2,731 medical school seats that consisted of 2,481 operating seats and 278 approved seats. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 16.2%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 13.1%

  • Cash Machine

    FCF / Assets > 5%

    Value: 11.8%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 10.9%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.4%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 65.0%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Consumer Defensive

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.63x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 245.9%

Analysis Summary

AFYA presents a rather compelling picture, ticking all nine boxes. The high ROE and ROIC, coupled with a strong moat and straightforward business model, suggest a company that knows how to deliver consistent returns. While the growth isn't exactly setting the world on fire, that conservative debt and fair valuation provide some much-needed ballast for long-term compounding.

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