Afya Limited (AFYA) vs McGraw Hill, Inc. (MH)

Afya Limited and McGraw Hill, Inc. are both Education & Training Services companies. McGraw Hill, Inc. is the larger, with a market value of $2.7B against $1.3B — 2.0× the size. Afya Limited trades at the lower P/E: 8.8× against 27.7×. Afya Limited grew revenue faster over the last twelve months: 17.4% against 0.14%. Afya Limited has the higher net margin (20.6% vs 4.38%) and the higher return on invested capital (12.5% vs 5.81%). Across the 20 metrics below, Afya Limited leads on 16 and McGraw Hill, Inc. on 4.

Valuation

Metric AFYA MH Education & Training Services median
P/E 8.81 27.68 13.22
P/S 1.78 1.25 0.99
P/B 1.32 3.36 1.62
Price to free cash flow 5.33 12.89 10.06
EV/EBITDA 4.87 6.51 8.56
EV/Sales 2.07 2.37 0.78
Earnings yield 11.36% 3.61% 3.17%
Free cash flow yield 18.77% 7.76% 2.81%

Profitability

Metric AFYA MH Education & Training Services median
Gross margin 64.09% 81.65% 54.64%
Operating margin 32.70% 13.93% 0.00%
Net margin 20.58% 4.38% 2.98%
Free cash flow margin 33.43% 9.70% 0.00%
Return on equity 16.63% 17.30% 0.00%
Return on assets 8.58% 1.68% 0.00%
Return on invested capital 12.54% 5.81% 0.00%

Growth

Metric AFYA MH Education & Training Services median
Revenue growth (TTM) 17.43% 0.14% 6.97%
EPS growth (last fiscal year) 15.50% 136.88% 15.68%
Revenue growth, 5-year CAGR 23.23% — 4.27%
Net income growth, 5-year CAGR 18.92% — 0.00%

Health

Metric AFYA MH Education & Training Services median
Debt to equity 0.42 3.27 0.05
Current ratio 2.20 0.78 1.33
Net debt to EBITDA 0.59 3.07 (0.15)

Dividend

Metric AFYA MH Education & Training Services median
Dividend yield 4.52% — 1.84%
Payout ratio 0.40 — 0.23

Size

Metric AFYA MH Education & Training Services median
Market cap 1.33b 2.72b 68.84m

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