NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:EDU • US6475812060
62.72 USD
+0.55 (+0.88%)
At close: Feb 6, 2026
62.72 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
EDU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 75 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year EDU was profitable.
- EDU had a positive operating cash flow in the past year.
- EDU had positive earnings in 4 of the past 5 years.
- EDU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- EDU has a Return On Assets of 4.59%. This is in the better half of the industry: EDU outperforms 61.84% of its industry peers.
- EDU has a Return On Equity of 9.79%. This is in the better half of the industry: EDU outperforms 63.16% of its industry peers.
- EDU's Return On Invested Capital of 8.79% is fine compared to the rest of the industry. EDU outperforms 76.32% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EDU is below the industry average of 10.44%.
- The last Return On Invested Capital (8.79%) for EDU is above the 3 year average (5.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 9.79% | ||
| ROIC | 8.79% |
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
- The Profit Margin of EDU (7.40%) is better than 64.47% of its industry peers.
- In the last couple of years the Profit Margin of EDU has declined.
- With a decent Operating Margin value of 10.76%, EDU is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- In the last couple of years the Operating Margin of EDU has declined.
- EDU has a Gross Margin of 55.33%. This is in the better half of the industry: EDU outperforms 71.05% 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 | 10.76% | ||
| PM (TTM) | 7.4% | ||
| GM | 55.33% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EDU is creating some value.
- EDU has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for EDU has been reduced compared to 5 years ago.
- EDU has a better debt/assets ratio than last year.
2.2 Solvency
- EDU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.17
WACC7.53%
2.3 Liquidity
- EDU has a Current Ratio of 1.57. 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 better Current ratio (1.57) than 65.79% of 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.
- EDU has a Quick ratio of 1.55. This is in the better half of the industry: EDU outperforms 67.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.24%, which is quite good.
- The Earnings Per Share has been growing slightly by 0.65% on average over the past years.
- EDU shows a small growth in Revenue. In the last year, the Revenue has grown by 6.70%.
- Measured over the past years, EDU shows a small growth in Revenue. The Revenue has been growing by 6.49% on average per year.
EPS 1Y (TTM)11.24%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%-77.27%
Revenue 1Y (TTM)6.7%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%14.71%
3.2 Future
- The Earnings Per Share is expected to grow by 15.75% on average over the next years. This is quite good.
- Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 8.82% on average per year.
EPS Next Y7.31%
EPS Next 2Y13.24%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue Next Year12.61%
Revenue Next 2Y11.67%
Revenue Next 3Y10.9%
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.
- 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
- A Price/Earnings ratio of 21.12 indicates a rather expensive valuation of EDU.
- Based on the Price/Earnings ratio, EDU is valued a bit cheaper than 60.53% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.93. EDU is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 15.63, which indicates a correct valuation of EDU.
- Based on the Price/Forward Earnings ratio, EDU is valued a bit cheaper than 72.37% of the companies in the same industry.
- EDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 96.05% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EDU is valued cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 2.79 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- EDU has a very decent profitability rating, which may justify a higher PE ratio.
- EDU's earnings are expected to grow with 15.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.89
PEG (5Y)32.41
EPS Next 2Y13.24%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
- EDU has a yearly dividend return of 0.93%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.38, EDU pays a better dividend. On top of this EDU pays more dividend than 86.84% of the companies listed in the same industry.
- With a Dividend Yield of 0.93, EDU pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 2Y13.24%
EPS Next 3Y15.75%
62.72
+0.55 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners35.17%
Inst Owner Change-4.66%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap9.98B
Revenue(TTM)5.14B
Net Income(TTM)380.53M
Analysts77.14
Price Target70.11 (11.78%)
Short Float %26.95%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.06
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)-44.36%
Min EPS beat(2)-85.16%
Max EPS beat(2)-3.57%
EPS beat(4)1
Avg EPS beat(4)-3.02%
Min EPS beat(4)-85.16%
Max EPS beat(4)80.56%
EPS beat(8)2
Avg EPS beat(8)-12.73%
EPS beat(12)3
Avg EPS beat(12)-14.52%
EPS beat(16)4
Avg EPS beat(16)-35.11%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)1.23%
Revenue beat(12)8
Avg Revenue beat(12)2.63%
Revenue beat(16)12
Avg Revenue beat(16)8.38%
PT rev (1m)3.63%
PT rev (3m)13.79%
EPS NQ rev (1m)4.68%
EPS NQ rev (3m)4.68%
EPS NY rev (1m)-3.71%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 15.63 | ||
| P/S | 1.94 | ||
| P/FCF | 10.9 | ||
| P/OCF | 10.9 | ||
| P/B | 2.57 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 2.79 |
EPS(TTM)2.97
EY4.74%
EPS(NY)4.01
Fwd EY6.4%
FCF(TTM)5.75
FCFY9.18%
OCF(TTM)5.75
OCFY9.18%
SpS32.3
BVpS24.42
TBVpS24.07
PEG (NY)2.89
PEG (5Y)32.41
Graham Number40.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 9.79% | ||
| ROCE | 11.68% | ||
| ROIC | 8.79% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 10.76% | ||
| PM (TTM) | 7.4% | ||
| GM | 55.33% | ||
| FCFM | 17.82% |
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-Score5
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 | 131.06% | ||
| Profit Quality | 240.68% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | N/A |
F-Score5
WACC7.53%
ROIC/WACC1.17
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)11.24%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%-77.27%
EPS Next Y7.31%
EPS Next 2Y13.24%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue 1Y (TTM)6.7%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%14.71%
Revenue Next Year12.61%
Revenue Next 2Y11.67%
Revenue Next 3Y10.9%
Revenue Next 5Y8.82%
EBIT growth 1Y26.79%
EBIT growth 3YN/A
EBIT growth 5Y4.13%
EBIT Next Year50.25%
EBIT Next 3Y27.22%
EBIT Next 5Y21.35%
FCF growth 1Y-26.64%
FCF growth 3YN/A
FCF growth 5Y5.75%
OCF growth 1Y-26.64%
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.
Can you provide the valuation status for NEW ORIENTAL EDUCATIO-SP ADR?
ChartMill assigns a valuation rating of 5 / 10 to NEW ORIENTAL EDUCATIO-SP ADR (EDU). This can be considered as Fairly Valued.
How profitable is NEW ORIENTAL EDUCATIO-SP ADR (EDU) stock?
NEW ORIENTAL EDUCATIO-SP ADR (EDU) has a profitability rating of 6 / 10.
How financially healthy is NEW ORIENTAL EDUCATIO-SP ADR?
The financial health rating of NEW ORIENTAL EDUCATIO-SP ADR (EDU) is 7 / 10.