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Investors should take note of NYSE:EDU, a growth stock that remains attractively priced.

By Mill Chart

Last update: Mar 21, 2024

Our stock screener has spotted NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) as a growth stock which is not overvalued. NYSE:EDU is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Exploring NYSE:EDU's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:EDU has earned a 7 for growth:

  • The Earnings Per Share has grown by an impressive 283.17% over the past year.
  • EDU shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.17%.
  • Based on estimates for the next years, EDU will show a very strong growth in Earnings Per Share. The EPS will grow by 78.21% on average per year.
  • EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.39% 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NYSE:EDU's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:EDU boasts a 5 out of 10:

  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 67.19% of the companies listed in the same industry.
  • EDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EDU is cheaper than 84.38% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as EDU's earnings are expected to grow with 78.21% in the coming years.

Exploring NYSE:EDU's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:EDU has earned a 6 out of 10:

  • EDU has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
  • EDU has a better Debt to FCF ratio (0.01) than 92.19% 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 68.75% of the companies in the same industry.
  • EDU has a better Current ratio (1.87) than 68.75% of its industry peers.
  • EDU has a Quick ratio of 1.84. This is in the better half of the industry: EDU outperforms 68.75% of its industry peers.

Profitability Analysis for 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 has a Return On Assets of 4.29%. This is in the better half of the industry: EDU outperforms 78.13% of its industry peers.
  • EDU's Return On Equity of 7.99% is fine compared to the rest of the industry. EDU outperforms 75.00% of its industry peers.
  • With a decent Return On Invested Capital value of 6.00%, EDU is doing good in the industry, outperforming 76.56% of the companies in the same industry.
  • Looking at the Profit Margin, with a value of 8.54%, EDU belongs to the top of the industry, outperforming 82.81% 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.
  • Looking at the Gross Margin, with a value of 54.67%, EDU is in the better half of the industry, outperforming 64.06% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of EDU contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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NEW ORIENTAL EDUCATIO-SP ADR

NYSE:EDU (4/19/2024, 7:04:00 PM)

After market: 84.78 -0.21 (-0.25%)

84.99

-1.9 (-2.19%)

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