NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EDU - US6475812060 - ADR
50.65 USD
-0.15 (-0.3%)
EDU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. EDU has an excellent financial health rating, but there are some minor concerns on its profitability. EDU may be a bit undervalued, certainly considering the very reasonable score on growth This makes EDU very considerable for value investing!
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.
Of the past 5 years EDU 4 years were profitable.
Of the past 5 years EDU 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EDU (4.58%) is better than 64.94% of its industry peers.
Looking at the Return On Equity, with a value of 9.29%, EDU is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.94%, EDU is doing good in the industry, outperforming 76.62% of the companies in the same industry.
EDU had an Average Return On Invested Capital over the past 3 years of 5.81%. This is below the industry average of 9.62%.
The 3 year average ROIC (5.81%) for EDU is below the current ROIC(7.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 9.29% | ||
| ROIC | 7.94% |
ROA(3y)3.88%
ROA(5y)-0.95%
ROE(3y)7.76%
ROE(5y)-0.4%
ROIC(3y)5.81%
ROIC(5y)N/A
1.3 Margins
EDU has a better Profit Margin (7.36%) than 66.23% of its industry peers.
EDU's Profit Margin has declined in the last couple of years.
EDU has a Operating Margin of 10.15%. This is in the better half of the industry: EDU outperforms 66.23% of its industry peers.
EDU's Operating Margin has declined in the last couple of years.
EDU's Gross Margin of 55.14% is fine compared to the rest of the industry. EDU outperforms 67.53% of its industry peers.
EDU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 7.36% | ||
| GM | 55.14% |
OM growth 3YN/A
OM growth 5Y-2.22%
PM growth 3YN/A
PM growth 5Y-8.06%
GM growth 3Y8.42%
GM growth 5Y-0.06%
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.
The number of shares outstanding for EDU has been reduced compared to 1 year ago.
EDU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EDU has been reduced compared to a year ago.
2.2 Solvency
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC7.53%
2.3 Liquidity
EDU has a Current Ratio of 1.65. This is a normal value and indicates that EDU is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EDU (1.65) is better than 67.53% of its industry peers.
A Quick Ratio of 1.63 indicates that EDU should not have too much problems paying its short term obligations.
EDU has a better Quick ratio (1.63) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.60%, which is quite good.
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.
EDU shows a small growth in Revenue. In the last year, the Revenue has grown by 7.29%.
The Revenue has been growing slightly by 6.49% on average over the past years.
EPS 1Y (TTM)14.6%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%0.63%
Revenue 1Y (TTM)7.29%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%6.1%
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 12.96% on average per year.
EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.82% yearly.
EPS Next Y13.33%
EPS Next 2Y13.95%
EPS Next 3Y12.96%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y10.45%
Revenue Next 3Y10.23%
Revenue Next 5Y8.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.13 indicates a correct valuation of EDU.
Compared to the rest of the industry, the Price/Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 70.13% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (25.65), we can say EDU is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.46, which indicates a correct valuation of EDU.
72.73% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, EDU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EDU is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 0.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EDU has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EDU's earnings are expected to grow with 12.96% in the coming years.
PEG (NY)1.21
PEG (5Y)24.76
EPS Next 2Y13.95%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
EDU has a Yearly Dividend Yield of 1.13%.
EDU's Dividend Yield is rather good when compared to the industry average which is at 2.13. EDU pays more dividend than 89.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, EDU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
EDU has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y13.95%
EPS Next 3Y12.96%
NYSE:EDU (11/25/2025, 10:48:17 AM)
50.65
-0.15 (-0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners37.83%
Inst Owner Change-12.06%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap8.06B
Revenue(TTM)4.99B
Net Income(TTM)367.01M
Analysts78.18
Price Target66.98 (32.24%)
Short Float %40.27%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.5%
Min EPS beat(2)-3.57%
Max EPS beat(2)80.56%
EPS beat(4)1
Avg EPS beat(4)12.04%
Min EPS beat(4)-24.94%
Max EPS beat(4)80.56%
EPS beat(8)2
Avg EPS beat(8)-2.16%
EPS beat(12)3
Avg EPS beat(12)-15.06%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.18%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)4.55%
Revenue beat(4)2
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)1.74%
Revenue beat(12)8
Avg Revenue beat(12)2.75%
Revenue beat(16)12
Avg Revenue beat(16)16.63%
PT rev (1m)9.12%
PT rev (3m)9.43%
EPS NQ rev (1m)16.35%
EPS NQ rev (3m)74.07%
EPS NY rev (1m)2.94%
EPS NY rev (3m)4.24%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.46 | ||
| P/S | 1.62 | ||
| P/FCF | 8.9 | ||
| P/OCF | 8.9 | ||
| P/B | 2.04 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 0.05 |
EPS(TTM)3.14
EY6.2%
EPS(NY)4.06
Fwd EY8.02%
FCF(TTM)5.69
FCFY11.24%
OCF(TTM)5.69
OCFY11.24%
SpS31.34
BVpS24.84
TBVpS24.49
PEG (NY)1.21
PEG (5Y)24.76
Graham Number41.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 9.29% | ||
| ROCE | 10.54% | ||
| ROIC | 7.94% | ||
| ROICexc | 287.98% | ||
| ROICexgc | 499.03% | ||
| OM | 10.15% | ||
| PM (TTM) | 7.36% | ||
| GM | 55.14% | ||
| FCFM | 18.16% |
ROA(3y)3.88%
ROA(5y)-0.95%
ROE(3y)7.76%
ROE(5y)-0.4%
ROIC(3y)5.81%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.71%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-2.22%
PM growth 3YN/A
PM growth 5Y-8.06%
GM growth 3Y8.42%
GM growth 5Y-0.06%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.96% | ||
| Profit Quality | 246.78% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | N/A |
F-Score6
WACC7.53%
ROIC/WACC1.05
Cap/Depr(3y)172.18%
Cap/Depr(5y)156.74%
Cap/Sales(3y)5.16%
Cap/Sales(5y)6.11%
Profit Quality(3y)308.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.6%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%0.63%
EPS Next Y13.33%
EPS Next 2Y13.95%
EPS Next 3Y12.96%
EPS Next 5YN/A
Revenue 1Y (TTM)7.29%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%6.1%
Revenue Next Year10.59%
Revenue Next 2Y10.45%
Revenue Next 3Y10.23%
Revenue Next 5Y8.82%
EBIT growth 1Y15.46%
EBIT growth 3YN/A
EBIT growth 5Y4.13%
EBIT Next Year46.31%
EBIT Next 3Y26.64%
EBIT Next 5Y21.35%
FCF growth 1Y-19.25%
FCF growth 3YN/A
FCF growth 5Y5.75%
OCF growth 1Y-19.25%
OCF growth 3YN/A
OCF growth 5Y2.19%
NEW ORIENTAL EDUCATIO-SP ADR / EDU FAQ
Can you provide the ChartMill fundamental rating for NEW ORIENTAL EDUCATIO-SP ADR?
ChartMill assigns a fundamental rating of 6 / 10 to EDU.
What is the valuation status for EDU stock?
ChartMill assigns a valuation rating of 7 / 10 to NEW ORIENTAL EDUCATIO-SP ADR (EDU). This can be considered as Undervalued.
How profitable is NEW ORIENTAL EDUCATIO-SP ADR (EDU) stock?
NEW ORIENTAL EDUCATIO-SP ADR (EDU) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for EDU stock?
The Price/Earnings (PE) ratio for NEW ORIENTAL EDUCATIO-SP ADR (EDU) is 16.13 and the Price/Book (PB) ratio is 2.04.
What is the expected EPS growth for NEW ORIENTAL EDUCATIO-SP ADR (EDU) stock?
The Earnings per Share (EPS) of NEW ORIENTAL EDUCATIO-SP ADR (EDU) is expected to grow by 13.33% in the next year.