Afya Limited (AFYA) Stock Analysis

Afya’s primary competitive advantage is its scale and regulatory position in Brazilian medical education. As of year-end 2024, Afya operated 3,593 approved medical school seats—more than any private competitor, with the next largest holding 2,060 seats. Regulatory barriers are high: new seat authorizations are tightly controlled by the Ministry of Education, and recent expansions have largely favored established players. This entrenched position ensures high occupancy (near 100%) and pricing power, with average monthly tuition for medical programs rising 4.6% in 2024 to R$8,849.

Afya’s integrated “phygital” (physical plus digital) ecosystem further differentiates it. The company combines in-person medical training with proprietary digital platforms (e.g., Whitebook, iClinic), supporting both students and practicing physicians. This end-to-end offering enables cross-selling and high customer retention across the physician’s career. In contrast, rivals such as Estácio and Kroton have less focus on medicine and weaker digital integration.

Afya’s brand is widely recognized for quality, reflected in a Net Promoter Score of 46 among early-stage medical students and a General Course Index matching the national average. The company’s B2B partnerships with hospitals and pharmaceutical firms expand its reach and reinforce its ecosystem.

Risks include potential regulatory liberalization, which could erode barriers, and growing competition in digital health. However, Afya’s scale, regulatory moat, and integrated platform provide a durable edge over peers.