Afya Limited (AFYA) vs Strategic Education Inc. (STRA)

Afya Limited and Strategic Education Inc. are both Education & Training Services companies. Strategic Education Inc. is the larger, with a market value of $1.8B against $1.3B — 1.4× the size. Afya Limited trades at the lower P/E: 7.9× against 12.5×. Afya Limited grew revenue faster over the last twelve months: 17.4% against 3.53%. Afya Limited has the higher net margin (20.6% vs 10.5%) and the higher return on invested capital (12.5% vs 7.49%). Both pay a dividend; Strategic Education Inc. yields more (2.48% vs 0.13%). Across the 23 metrics below, Afya Limited leads on 16 and Strategic Education Inc. on 7.

Valuation

Metric AFYA STRA Education & Training Services median
P/E 7.88 12.49 11.19
P/S 1.59 1.28 0.92
P/B 1.18 1.01 1.63
Price to free cash flow 4.77 9.62 9.62
EV/EBITDA 4.43 7.02 7.02
EV/Sales 1.88 1.24 0.82
Earnings yield 12.69% 8.00% 3.17%
Free cash flow yield 20.98% 10.40% 2.30%

Profitability

Metric AFYA STRA Education & Training Services median
Gross margin 64.09% 49.06% 54.64%
Operating margin 32.70% 14.01% 0.00%
Net margin 20.58% 10.46% 3.29%
Free cash flow margin 33.43% 13.28% 0.00%
Return on equity 16.63% 8.15% 0.00%
Return on assets 8.58% 6.47% 0.00%
Return on invested capital 12.54% 7.49% 0.00%

Growth

Metric AFYA STRA Education & Training Services median
Revenue growth (TTM) 17.43% 3.53% 6.97%
EPS growth (last fiscal year) 15.50% 15.85% —
Revenue growth, 5-year CAGR 23.23% 4.30% 4.27%
Net income growth, 5-year CAGR 18.92% 7.98% 0.00%

Health

Metric AFYA STRA Education & Training Services median
Debt to equity 0.42 0.00 0.08
Current ratio 2.20 1.10 1.33
Net debt to EBITDA 0.59 (0.66) (0.15)

Dividend

Metric AFYA STRA Education & Training Services median
Dividend yield 0.13% 2.48% 1.13%
Payout ratio 0.00 1.57 0.00

Size

Metric AFYA STRA Education & Training Services median
Market cap 1.26b 1.77b 68.93m

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