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

NYSE:EDU - US6475812060 - ADR

47.55 USD
+0.24 (+0.51%)
Last: 8/22/2025, 3:58:01 PM
Fundamental Rating

5

EDU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. While EDU is still in line with the averages on profitability rating, there are concerns on its financial health. EDU is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year EDU was profitable.
EDU had positive earnings in 4 of the past 5 years.
In multiple years EDU reported negative operating cash flow during the last 5 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 2025 0 500M -500M 1B -1B

1.2 Ratios

EDU has a Return On Assets of 4.76%. This is in the better half of the industry: EDU outperforms 66.20% of its industry peers.
Looking at the Return On Equity, with a value of 10.15%, EDU is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
The Return On Invested Capital of EDU (8.14%) is better than 78.87% of its industry peers.
EDU had an Average Return On Invested Capital over the past 3 years of 5.81%. This is below the industry average of 10.25%.
The 3 year average ROIC (5.81%) for EDU is below the current ROIC(8.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.76%
ROE 10.15%
ROIC 8.14%
ROA(3y)3.88%
ROA(5y)-0.95%
ROE(3y)7.76%
ROE(5y)-0.4%
ROIC(3y)5.81%
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 2025 0 10 -10 -20 -30

1.3 Margins

Looking at the Profit Margin, with a value of 7.59%, EDU is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
EDU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.97%, EDU is in the better half of the industry, outperforming 67.61% 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 55.45% is fine compared to the rest of the industry. EDU outperforms 70.42% 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 9.97%
PM (TTM) 7.59%
GM 55.45%
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%
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 2025 0 20 -20 40

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EDU is still creating some value.
Compared to 1 year ago, EDU has about the same amount of shares outstanding.
Compared to 5 years ago, EDU has more shares outstanding
EDU has a better debt/assets ratio than last year.
EDU Yearly Shares OutstandingEDU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
The Debt to Equity ratio of EDU (0.00) is better than 74.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC1.06
WACC7.66%
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 2025 0 2B 4B

2.3 Liquidity

EDU has a Current Ratio of 1.58. This is a normal value and indicates that EDU is financially healthy and should not expect problems in meeting its short term obligations.
EDU has a Current ratio (1.58) which is in line with its industry peers.
EDU has a Quick Ratio of 1.55. This is a normal value and indicates that EDU is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.55, EDU is doing good in the industry, outperforming 60.56% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.58
Quick Ratio 1.55
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 2025 2B 4B 6B

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6

3. Growth

3.1 Past

EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.89%, which is quite impressive.
EDU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.65% yearly.
EDU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.60%.
EDU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.49% yearly.
EPS 1Y (TTM)37.89%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%177.27%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%9.37%

3.2 Future

EDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.33% yearly.
The Revenue is expected to grow by 8.82% on average over the next years. This is quite good.
EPS Next Y12.58%
EPS Next 2Y16.26%
EPS Next 3Y11.33%
EPS Next 5YN/A
Revenue Next Year12.57%
Revenue Next 2Y12.57%
Revenue Next 3Y10.08%
Revenue Next 5Y8.82%

3.3 Evolution

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.
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 2028 0 2 -2 4 -4

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.19, EDU is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 77.46% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (26.76), we can say EDU is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.49, which indicates a correct valuation of EDU.
Based on the Price/Forward Earnings ratio, EDU is valued cheaper than 80.28% of the companies in the same industry.
EDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.19
Fwd PE 13.49
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

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
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.
PEG (NY)1.21
PEG (5Y)23.32
EPS Next 2Y16.26%
EPS Next 3Y11.33%

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5

5. Dividend

5.1 Amount

EDU has a Yearly Dividend Yield of 11.31%, which is a nice return.
EDU's Dividend Yield is rather good when compared to the industry average which is at 3.56. EDU pays more dividend than 98.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, EDU pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.31%

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
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 3Y11.33%
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 2025 0 500M -500M -1B

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NEW ORIENTAL EDUCATIO-SP ADR

NYSE:EDU (8/22/2025, 3:58:01 PM)

47.55

+0.24 (+0.51%)

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 Owners44.42%
Inst Owner Change-13.68%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap7.78B
Analysts80
Price Target64.29 (35.21%)
Short Float %33.04%
Short Ratio3.93
Dividend
Industry RankSector Rank
Dividend Yield 11.31%
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)1
Avg EPS beat(2)38.33%
Min EPS beat(2)-3.89%
Max EPS beat(2)80.56%
EPS beat(4)2
Avg EPS beat(4)14.51%
Min EPS beat(4)-24.94%
Max EPS beat(4)80.56%
EPS beat(8)3
Avg EPS beat(8)3.15%
EPS beat(12)4
Avg EPS beat(12)-12.73%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)4.55%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)4.55%
Revenue beat(8)5
Avg Revenue beat(8)2.79%
Revenue beat(12)9
Avg Revenue beat(12)3.49%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.37%
PT rev (3m)-4.19%
EPS NQ rev (1m)18.92%
EPS NQ rev (3m)-8.1%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)-3.17%
Revenue NQ rev (3m)-6.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 15.19
Fwd PE 13.49
P/S 1.59
P/FCF N/A
P/OCF N/A
P/B 2.12
P/tB 2.16
EV/EBITDA N/A
EPS(TTM)3.13
EY6.58%
EPS(NY)3.52
Fwd EY7.41%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS29.97
BVpS22.39
TBVpS22.05
PEG (NY)1.21
PEG (5Y)23.32
Profitability
Industry RankSector Rank
ROA 4.76%
ROE 10.15%
ROCE 10.82%
ROIC 8.14%
ROICexc N/A
ROICexgc N/A
OM 9.97%
PM (TTM) 7.59%
GM 55.45%
FCFM N/A
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
ROICexcg growth 3YN/A
ROICexcg 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-ScoreN/A
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.58
Quick Ratio 1.55
Altman-Z N/A
F-ScoreN/A
WACC7.66%
ROIC/WACC1.06
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 3Y11.33%
EPS Next 5YN/A
Revenue 1Y (TTM)13.6%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%9.37%
Revenue Next Year12.57%
Revenue Next 2Y12.57%
Revenue Next 3Y10.08%
Revenue Next 5Y8.82%
EBIT growth 1Y39.42%
EBIT growth 3YN/A
EBIT growth 5Y4.13%
EBIT Next Year47.39%
EBIT Next 3Y23.8%
EBIT Next 5Y23.13%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A