Afya Limited secures 80 additional medical seats in Brazil

NOVA LIMA, Brazil - Afya (NASDAQ:AFYA) Limited (NASDAQ: AFYA; B3: A2FY34), a prominent medical education group in Brazil, has announced the approval for an expansion of 80 medical seats at the Centro Universitário de Maceió (UNIMA Alagoas). This development, sanctioned by the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education (MEC), is set to occur in the city of Maceió, Alagoas state.

The approval for additional seats will necessitate an incremental payment by Afya of R$ 1.25 million per seat, an amount that is subject to adjustment based on the IPCA inflation index from January 2, 2023, until the actual payment date.

With this latest increment, UNIMA Alagoas's total medical seats under Afya's management have risen to 220, bolstering the company's overall count to 3,583 approved seats across its institutions. This move is indicative of Afya's continued efforts to fortify its position as a leading provider of medical education in the country.

Afya operates an integrated educational platform dedicated to healthcare professionals, encompassing the entire medical career trajectory—from medical school enrollment through residency preparation, graduate programs, continuing medical education, and practice management solutions.

The company's mission is to support medical students and professionals in achieving their career goals, thereby enhancing healthcare services throughout their professional lives.

The authorization of additional medical seats is a strategic step for Afya, reflecting its commitment to expanding access to medical education in Brazil. This expansion is expected to have a positive impact on the local healthcare system by increasing the number of qualified medical practitioners in the region.

This information is based on a press release statement from Afya Limited.

InvestingPro Insights

Afya Limited's recent approval for the expansion of medical seats at UNIMA Alagoas is a strategic move that aligns with the company's impressive financial performance and growth trajectory. According to InvestingPro data, Afya boasts a robust gross profit margin of 61.9% for the last twelve months as of Q1 2024, highlighting the company's ability to retain a significant portion of revenue after accounting for the cost of goods sold—a key indicator of financial health in the competitive Diversified Consumer Services industry.

The company also trades at a low price-to-earnings (P/E) ratio of 17.42, adjusted for the last twelve months as of Q1 2024, which suggests that the stock may be undervalued relative to its near-term earnings growth. This is further supported by a PEG ratio of 0.51, indicating that the stock's price is reasonable given the expected earnings growth rates.

InvestingPro Tips further reveal that analysts predict Afya will be profitable this year, and the company has been profitable over the last twelve months. Additionally, Afya operates with a moderate level of debt, which can be an attractive quality for investors looking for a stable investment with managed financial risk.

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