NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
USA - NYSE:EDU - US6475812060 - ADR
58.98 USD
+1.18 (+2.04%)
EDU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of EDU get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, EDU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EDU had positive earnings in the past year.
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.
1.2 Ratios
With a decent Return On Assets value of 4.76%, EDU is doing good in the industry, outperforming 70.13% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.15%, EDU is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
EDU's Return On Invested Capital of 8.14% is amongst the best of the industry. EDU outperforms 80.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EDU is below the industry average of 9.48%.
The last Return On Invested Capital (8.14%) for EDU is above the 3 year average (5.81%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 7.59%, EDU is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
In the last couple of years the Profit Margin of EDU has declined.
The Operating Margin of EDU (9.97%) is better than 67.53% of its industry peers.
In the last couple of years the Operating Margin of EDU has declined.
EDU has a better Gross Margin (55.45%) than 68.83% 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 Rank | Sector 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%
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.
EDU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EDU has an improved debt to assets ratio.
2.2 Solvency
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 77.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.58 indicates that EDU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.58, EDU is doing good in the industry, outperforming 62.34% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that EDU should not have too much problems paying its short term obligations.
EDU has a better Quick ratio (1.55) than 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.60% over the past year.
The Earnings Per Share has been growing slightly by 0.65% on average over the past years.
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)14.6%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%0.63%
Revenue 1Y (TTM)13.6%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%6.1%
3.2 Future
The Earnings Per Share is expected to grow by 13.17% on average over the next years. This is quite good.
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 Y10.09%
EPS Next 2Y12.16%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue Next Year10.12%
Revenue Next 2Y10.01%
Revenue Next 3Y10.05%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.78, which indicates a rather expensive current valuation of EDU.
EDU's Price/Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 68.83% of the companies 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 14.98, which indicates a correct valuation of EDU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 72.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. EDU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EDU does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as EDU's earnings are expected to grow with 13.17% in the coming years.
PEG (NY)1.86
PEG (5Y)28.83
EPS Next 2Y12.16%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
EDU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:EDU (10/30/2025, 1:06:57 PM)
58.98
+1.18 (+2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners37.83%
Inst Owner Change-0.01%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap9.39B
Revenue(TTM)4.90B
Net Income(TTM)371.72M
Analysts78.18
Price Target61.62 (4.48%)
Short Float %36.11%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.48%
PT rev (3m)-9.06%
EPS NQ rev (1m)2.31%
EPS NQ rev (3m)21.66%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.21%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-3.3%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 14.98 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.56 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.14
EY5.32%
EPS(NY)3.94
Fwd EY6.68%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS30.79
BVpS23.01
TBVpS22.65
PEG (NY)1.86
PEG (5Y)28.83
Graham Number40.32
Profitability
| Industry Rank | Sector 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
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-ScoreN/A
Asset Turnover0.63
Health
| Industry Rank | Sector 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
WACC7.53%
ROIC/WACC1.08
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)14.6%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%0.63%
EPS Next Y10.09%
EPS Next 2Y12.16%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue 1Y (TTM)13.6%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%6.1%
Revenue Next Year10.12%
Revenue Next 2Y10.01%
Revenue Next 3Y10.05%
Revenue Next 5Y8.82%
EBIT growth 1Y39.42%
EBIT growth 3YN/A
EBIT growth 5Y4.13%
EBIT Next Year46.31%
EBIT Next 3Y25.23%
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
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 4 / 10 to EDU.
What is the valuation status for EDU stock?
ChartMill assigns a valuation rating of 3 / 10 to NEW ORIENTAL EDUCATIO-SP ADR (EDU). This can be considered as Overvalued.
How profitable is NEW ORIENTAL EDUCATIO-SP ADR (EDU) stock?
NEW ORIENTAL EDUCATIO-SP ADR (EDU) has a profitability rating of 5 / 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 18.78 and the Price/Book (PB) ratio is 2.56.
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 10.09% in the next year.