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NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis

NYSE:EDU - New York Stock Exchange, Inc. - US6475812060 - ADR - Currency: USD

44.45  +0.08 (+0.18%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to EDU. EDU was compared to 72 industry peers in the Diversified Consumer Services industry. EDU has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on EDU. These ratings could make EDU a good candidate for value investing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

EDU had positive earnings in the past year.
In the past year EDU had a positive cash flow from operations.
In multiple years EDU reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: EDU reported negative operating cash flow in multiple years.
EDU Yearly Net Income VS EBIT VS OCF VS FCFEDU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.26%, EDU is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
EDU has a better Return On Equity (10.62%) than 68.06% of its industry peers.
With an excellent Return On Invested Capital value of 7.77%, EDU belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
Industry RankSector Rank
ROA 5.26%
ROE 10.62%
ROIC 7.77%
ROA(3y)-4.27%
ROA(5y)-0.64%
ROE(3y)-6.31%
ROE(5y)0.6%
ROIC(3y)N/A
ROIC(5y)N/A
EDU Yearly ROA, ROE, ROICEDU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

EDU has a Profit Margin of 8.17%. This is in the better half of the industry: EDU outperforms 68.06% of its industry peers.
EDU's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 9.33%, EDU is doing good in the industry, outperforming 68.06% of the companies in the same industry.
In the last couple of years the Operating Margin of EDU has declined.
EDU's Gross Margin of 55.03% is fine compared to the rest of the industry. EDU outperforms 69.44% of its industry peers.
In the last couple of years the Gross Margin of EDU has remained more or less at the same level.
Industry RankSector Rank
OM 9.33%
PM (TTM) 8.17%
GM 55.03%
OM growth 3Y24.83%
OM growth 5Y-3.58%
PM growth 3Y-2.82%
PM growth 5Y-1.37%
GM growth 3Y0.05%
GM growth 5Y-1.14%
EDU Yearly Profit, Operating, Gross MarginsEDU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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5

2. Health

2.1 Basic Checks

EDU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for EDU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
EDU Yearly Shares OutstandingEDU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
EDU Yearly Total Debt VS Total AssetsEDU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

The Debt to FCF ratio of EDU is 0.02, which is an excellent value as it means it would take EDU, only 0.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EDU (0.02) is better than 91.67% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, EDU is doing good in the industry, outperforming 76.39% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z N/A
ROIC/WACC1.03
WACC7.53%
EDU Yearly LT Debt VS Equity VS FCFEDU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

2.3 Liquidity

A Current Ratio of 1.66 indicates that EDU should not have too much problems paying its short term obligations.
EDU's Current ratio of 1.66 is fine compared to the rest of the industry. EDU outperforms 62.50% of its industry peers.
EDU has a Quick Ratio of 1.63. This is a normal value and indicates that EDU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EDU (1.63) is better than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.63
EDU Yearly Current Assets VS Current LiabilitesEDU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.89% over the past year.
Measured over the past 5 years, EDU shows a small growth in Earnings Per Share. The EPS has been growing by 0.65% on average per year.
EPS 1Y (TTM)37.89%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%177.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.37%

3.2 Future

Based on estimates for the next years, EDU will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.26% on average per year.
The Revenue is expected to grow by 9.63% on average over the next years. This is quite good.
EPS Next Y12.58%
EPS Next 2Y16.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.57%
Revenue Next 2Y12.57%
Revenue Next 3Y10.68%
Revenue Next 5Y9.63%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
EDU Yearly Revenue VS EstimatesEDU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
EDU Yearly EPS VS EstimatesEDU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 -4

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.20, which indicates a correct valuation of EDU.
81.94% of the companies in the same industry are more expensive than EDU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.61. EDU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.61, EDU is valued correctly.
EDU's Price/Forward Earnings ratio is rather cheap when compared to the industry. EDU is cheaper than 80.56% of the companies in the same industry.
EDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.2
Fwd PE 12.61
EDU Price Earnings VS Forward Price EarningsEDU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

100.00% of the companies in the same industry are more expensive than EDU, based on the Enterprise Value to EBITDA ratio.
93.06% of the companies in the same industry are more expensive than EDU, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.31
EV/EBITDA 0.18
EDU Per share dataEDU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

EDU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EDU's earnings are expected to grow with 16.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)21.8
EPS Next 2Y16.26%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 14.43%, EDU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.68, EDU pays a better dividend. On top of this EDU pays more dividend than 98.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EDU pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.43%

5.2 History

EDU has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
EDU Yearly Dividends per shareEDU Yearly Dividends per shareYearly Dividends per share 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

DPN/A
EPS Next 2Y16.26%
EPS Next 3YN/A
EDU Yearly Income VS Free CF VS DividendEDU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B

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NEW ORIENTAL EDUCATIO-SP ADR

NYSE:EDU (7/31/2025, 12:55:08 PM)

44.45

+0.08 (+0.18%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)07-30 2025-07-30/bmo
Earnings (Next)10-21 2025-10-21/bmo
Inst Owners44.61%
Inst Owner Change-1.64%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap7.27B
Analysts80.83
Price Target67.49 (51.83%)
Short Float %39.89%
Short Ratio5.73
Dividend
Industry RankSector Rank
Dividend Yield 14.43%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.42%
Min EPS beat(2)-24.94%
Max EPS beat(2)-3.89%
EPS beat(4)1
Avg EPS beat(4)-18.23%
Min EPS beat(4)-50.38%
Max EPS beat(4)6.31%
EPS beat(8)2
Avg EPS beat(8)-10.51%
EPS beat(12)3
Avg EPS beat(12)-28.73%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)1.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)1.93%
Revenue beat(8)5
Avg Revenue beat(8)2.7%
Revenue beat(12)9
Avg Revenue beat(12)3.13%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.5%
PT rev (3m)-1.78%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)30.88%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-2.28%
Valuation
Industry RankSector Rank
PE 14.2
Fwd PE 12.61
P/S 1.52
P/FCF 8.31
P/OCF 8.31
P/B 1.97
P/tB 2.04
EV/EBITDA 0.18
EPS(TTM)3.13
EY7.04%
EPS(NY)3.52
Fwd EY7.93%
FCF(TTM)5.35
FCFY12.03%
OCF(TTM)5.35
OCFY12.03%
SpS29.31
BVpS22.54
TBVpS21.82
PEG (NY)1.13
PEG (5Y)21.8
Profitability
Industry RankSector Rank
ROA 5.26%
ROE 10.62%
ROCE 9.93%
ROIC 7.77%
ROICexc 166.77%
ROICexgc 380.14%
OM 9.33%
PM (TTM) 8.17%
GM 55.03%
FCFM 18.24%
ROA(3y)-4.27%
ROA(5y)-0.64%
ROE(3y)-6.31%
ROE(5y)0.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y24.83%
OM growth 5Y-3.58%
PM growth 3Y-2.82%
PM growth 5Y-1.37%
GM growth 3Y0.05%
GM growth 5Y-1.14%
F-Score7
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Debt/EBITDA 0.03
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 157.76%
Profit Quality 223.27%
Current Ratio 1.66
Quick Ratio 1.63
Altman-Z N/A
F-Score7
WACC7.53%
ROIC/WACC1.03
Cap/Depr(3y)142.64%
Cap/Depr(5y)164.49%
Cap/Sales(3y)5.14%
Cap/Sales(5y)6.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.89%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%177.27%
EPS Next Y12.58%
EPS Next 2Y16.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.37%
Revenue Next Year12.57%
Revenue Next 2Y12.57%
Revenue Next 3Y10.68%
Revenue Next 5Y9.63%
EBIT growth 1Y15.34%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year41.3%
EBIT Next 3Y27.33%
EBIT Next 5Y19.16%
FCF growth 1Y51.07%
FCF growth 3Y7.97%
FCF growth 5Y10.56%
OCF growth 1Y51.07%
OCF growth 3Y-0.22%
OCF growth 5Y6.86%