NEW ORIENTAL EDUCATIO-SP ADR (EDU)
US6475812060 - ADR
EDU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Diversified Consumer Services industry. EDU has an average financial health and profitability rating. EDU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make EDU suitable for growth 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
EDU's Return On Assets of 4.29% is fine compared to the rest of the industry. EDU outperforms 79.69% of its industry peers.
EDU's Return On Equity of 7.99% is fine compared to the rest of the industry. EDU outperforms 73.44% of its industry peers.
EDU has a Return On Invested Capital of 6.00%. This is in the better half of the industry: EDU outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 7.99% | ||
| ROIC | 6% |
ROA(3y)-4.54%
ROA(5y)-0.44%
ROE(3y)-6.78%
ROE(5y)0.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of EDU (8.54%) is better than 79.69% of its industry peers.
EDU's Profit Margin has declined in the last couple of years.
EDU has a Operating Margin of 9.51%. This is in the better half of the industry: EDU outperforms 70.31% of its industry peers.
EDU's Operating Margin has declined in the last couple of years.
The Gross Margin of EDU (54.67%) is better than 62.50% 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 | 9.51% | ||
| PM (TTM) | 8.54% | ||
| GM | 54.67% |
OM growth 3Y-17.16%
OM growth 5Y-10.02%
PM growth 3Y-19.99%
PM growth 5Y-13.33%
GM growth 3Y-1.59%
GM growth 5Y-1.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDU is destroying value.
EDU has less shares outstanding than it did 1 year ago.
EDU has more shares outstanding than it did 5 years ago.
EDU has a better debt/assets ratio than last year.
2.2 Solvency
EDU has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.01, EDU belongs to the top of the industry, outperforming 90.63% 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.
The Debt to Equity ratio of EDU (0.00) is better than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.87 indicates that EDU should not have too much problems paying its short term obligations.
EDU has a Current ratio of 1.87. This is in the better half of the industry: EDU outperforms 70.31% of its industry peers.
A Quick Ratio of 1.84 indicates that EDU should not have too much problems paying its short term obligations.
The Quick ratio of EDU (1.84) is better than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 283.17% over the past year.
The earnings per share for EDU have been decreasing by -16.23% on average. This is quite bad
EDU shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.17%.
Measured over the past years, EDU shows a small growth in Revenue. The Revenue has been growing by 4.14% on average per year.
EPS 1Y (TTM)283.17%
EPS 3Y-32.79%
EPS 5Y-16.23%
EPS growth Q2Q2800%
Revenue 1Y (TTM)42.17%
Revenue growth 3Y-5.73%
Revenue growth 5Y4.14%
Revenue growth Q2Q36.26%
3.2 Future
EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.44% yearly.
Based on estimates for the next years, EDU will show a very strong growth in Revenue. The Revenue will grow by 23.07% on average per year.
EPS Next Y221.89%
EPS Next 2Y110.87%
EPS Next 3Y79.44%
EPS Next 5YN/A
Revenue Next Year41.2%
Revenue Next 2Y31.9%
Revenue Next 3Y27.49%
Revenue Next 5Y23.07%
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 44.49, which means the current valuation is very expensive for EDU.
Compared to the rest of the industry, the Price/Earnings ratio of EDU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (24.84), we can say EDU is valued expensively.
With a Price/Forward Earnings ratio of 20.12, EDU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 70.31% of the companies listed in the same industry.
EDU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.49 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EDU.
EDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EDU is cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 14.76 |
4.3 Compensation for Growth
EDU's 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 79.44% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y110.87%
EPS Next 3Y79.44%
5. Dividend
5.1 Amount
EDU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NEW ORIENTAL EDUCATIO-SP ADR
NYSE:EDU (4/29/2024, 3:10:03 PM)
After market: 82.31 0 (0%)82.31
-0.95 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.49 | ||
| Fwd PE | 20.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 7.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.51% | ||
| PM (TTM) | 8.54% | ||
| GM | 54.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)283.17%
EPS 3Y-32.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y221.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)42.17%
Revenue growth 3Y-5.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y