Investors seeking growth at a reasonable cost should explore NYSE:EDU.

Last update: Feb 7, 2024

Take a closer look at NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU), an affordable growth stock uncovered by our stock screener. NYSE:EDU boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Growth: NYSE:EDU

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:EDU scores a 7 out of 10:

EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 148.51%, which is quite impressive.
Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 42.17%.
EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 101.28% yearly.
EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.49% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Unpacking NYSE:EDU's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:EDU has earned a 5 for valuation:

Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 68.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 60.94% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 85.94% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EDU's earnings are expected to grow with 101.28% in the coming years. This may justify a more expensive valuation.

Deciphering NYSE:EDU's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:EDU, the assigned 6 for health provides valuable insights:

The Debt to FCF ratio of EDU is 0.01, which is an excellent value as it means it would take EDU, only 0.01 years of fcf income to pay off all of its debts.
EDU has a better Debt to FCF ratio (0.01) than 87.50% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, EDU is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
The Current ratio of EDU (1.87) is better than 60.94% of its industry peers.
Looking at the Quick ratio, with a value of 1.84, EDU is in the better half of the industry, outperforming 60.94% of the companies in the same industry.

Profitability Insights: NYSE:EDU

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:EDU, the assigned 5 is a significant indicator of profitability:

EDU's Return On Assets of 4.29% is fine compared to the rest of the industry. EDU outperforms 78.13% of its industry peers.
EDU has a Return On Equity of 7.99%. This is in the better half of the industry: EDU outperforms 75.00% of its industry peers.
EDU's Return On Invested Capital of 6.00% is fine compared to the rest of the industry. EDU outperforms 76.56% of its industry peers.
Looking at the Profit Margin, with a value of 8.54%, EDU belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
EDU's Operating Margin of 9.51% is fine compared to the rest of the industry. EDU outperforms 71.88% of its industry peers.
With a decent Gross Margin value of 54.67%, EDU is doing good in the industry, outperforming 60.94% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of EDU

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.