NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) is probably undervalued for the fundamentals it is displaying.

Our stock screening tool has pinpointed NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) as an undervalued stock option. EDU retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Insights: EDU

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. EDU has achieved a 7 out of 10:

• 69.01% of the companies in the same industry are more expensive than EDU, based on the Price/Earnings ratio.
• EDU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.89.
• Based on the Price/Forward Earnings ratio, EDU is valued cheaper than 80.28% of the companies in the same industry.
• EDU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.88.
• Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 97.18% of the companies 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 94.37% 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.
• A more expensive valuation may be justified as EDU's earnings are expected to grow with 27.73% in the coming years.

Evaluating Profitability: EDU

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, EDU has achieved a 5:

• EDU's Return On Assets of 5.13% is fine compared to the rest of the industry. EDU outperforms 74.65% of its industry peers.
• EDU's Return On Equity of 10.58% is fine compared to the rest of the industry. EDU outperforms 66.20% of its industry peers.
• EDU has a better Return On Invested Capital (7.58%) than 78.87% of its industry peers.
• EDU's Profit Margin of 8.13% is fine compared to the rest of the industry. EDU outperforms 70.42% of its industry peers.
• EDU has a Operating Margin of 9.06%. This is in the better half of the industry: EDU outperforms 69.01% of its industry peers.
• The Gross Margin of EDU (52.91%) is better than 67.61% of its industry peers.

A Closer Look at Health for EDU

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. EDU has earned a 5 out of 10:

• 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.
• With an excellent Debt to FCF ratio value of 0.01, EDU belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
• EDU has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.00, EDU is doing good in the industry, outperforming 76.06% of the companies in the same industry.
• EDU has a Current ratio of 1.71. This is in the better half of the industry: EDU outperforms 67.61% of its industry peers.
• EDU's Quick ratio of 1.68 is fine compared to the rest of the industry. EDU outperforms 70.42% of its industry peers.

Growth Examination for EDU

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. EDU has achieved a 7 out of 10:

• EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.32%, which is quite impressive.
• Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 34.42%.
• EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.73% yearly.
• The Revenue is expected to grow by 11.28% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of EDU for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. 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.