NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
NYSE:EDU - New York Stock Exchange, Inc. - US6475812060 - ADR - Currency: USD
EDU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 industry peers in the Diversified Consumer Services industry. EDU has only an average score on both its financial health and profitability. EDU is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make EDU suitable 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.
EDU had positive earnings in 4 of the past 5 years.
Of the past 5 years EDU 4 years had a positive operating cash flow.
1.2 Ratios
EDU's Return On Assets of 5.26% is fine compared to the rest of the industry. EDU outperforms 72.60% of its industry peers.
EDU has a Return On Equity of 10.62%. This is in the better half of the industry: EDU outperforms 68.49% of its industry peers.
The Return On Invested Capital of EDU (7.77%) is better than 80.82% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
EDU's Profit Margin of 8.17% is fine compared to the rest of the industry. EDU outperforms 71.23% of its industry peers.
EDU's Profit Margin has been stable in the last couple of years.
EDU's Operating Margin of 9.33% is fine compared to the rest of the industry. EDU outperforms 69.86% of its industry peers.
In the last couple of years the Operating Margin of EDU has declined.
EDU has a Gross Margin of 55.03%. This is in the better half of the industry: EDU outperforms 72.60% of its industry peers.
EDU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
EDU has more shares outstanding than it did 1 year ago.
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
EDU has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
EDU's Debt to FCF ratio of 0.02 is amongst the best of the industry. EDU outperforms 90.41% of its industry peers.
EDU has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
EDU has a Debt to Equity ratio of 0.00. This is in the better half of the industry: EDU outperforms 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.66 indicates that EDU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, EDU is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
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 68.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.22% over the past year.
EDU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.53% yearly.
The Revenue has grown by 18.73% in the past year. This is quite good.
The Revenue has been growing slightly by 6.85% on average over the past years.
EPS 1Y (TTM)13.22%
EPS 3Y-8.47%
EPS 5Y-2.53%
EPS Q2Q%11.11%
Revenue 1Y (TTM)18.73%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%-2.01%
3.2 Future
Based on estimates for the next years, EDU will show a very strong growth in Earnings Per Share. The EPS will grow by 22.54% on average per year.
Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 11.28% on average per year.
EPS Next Y27.92%
EPS Next 2Y24.27%
EPS Next 3Y22.54%
EPS Next 5YN/A
Revenue Next Year12.48%
Revenue Next 2Y12.68%
Revenue Next 3Y13.13%
Revenue Next 5Y11.28%
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.
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
Based on the Price/Earnings ratio of 17.45, the valuation of EDU can be described as rather expensive.
76.71% of the companies in the same industry are more expensive than EDU, based on the Price/Earnings ratio.
EDU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
EDU is valuated correctly with a Price/Forward Earnings ratio of 13.64.
EDU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 79.45% of the companies in the same industry.
EDU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaply inside the industry as 95.89% of the companies are valued more expensively.
EDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EDU is cheaper than 93.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 1.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 22.54% in the coming years.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y24.27%
EPS Next 3Y22.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.17%, EDU is a good candidate for dividend investing.
EDU's Dividend Yield is rather good when compared to the industry average which is at 4.54. EDU pays more dividend than 98.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, EDU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.17% |
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 2Y24.27%
EPS Next 3Y22.54%
NYSE:EDU (5/21/2025, 10:58:09 AM)
47.815
-0.41 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners46.58%
Inst Owner Change-5.14%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap7.82B
Analysts78.33
Price Target67.1 (40.33%)
Short Float %50.29%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.17% |
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)-4.76%
PT rev (3m)-7.06%
EPS NQ rev (1m)29.58%
EPS NQ rev (3m)9.96%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-2.43%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 13.64 | ||
| P/S | 1.63 | ||
| P/FCF | 8.94 | ||
| P/OCF | 8.94 | ||
| P/B | 2.12 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 1.32 |
EPS(TTM)2.74
EY5.73%
EPS(NY)3.51
Fwd EY7.33%
FCF(TTM)5.35
FCFY11.18%
OCF(TTM)5.35
OCFY11.18%
SpS29.31
BVpS22.54
TBVpS21.82
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)13.22%
EPS 3Y-8.47%
EPS 5Y-2.53%
EPS Q2Q%11.11%
EPS Next Y27.92%
EPS Next 2Y24.27%
EPS Next 3Y22.54%
EPS Next 5YN/A
Revenue 1Y (TTM)18.73%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%-2.01%
Revenue Next Year12.48%
Revenue Next 2Y12.68%
Revenue Next 3Y13.13%
Revenue Next 5Y11.28%
EBIT growth 1Y15.34%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year38.55%
EBIT Next 3Y31.13%
EBIT Next 5Y19.77%
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%