NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
USA - NYSE:EDU - US6475812060 - ADR
52.39 USD
-1.08 (-2.02%)
52.39 USD
0 (0%)
EDU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. EDU has an average financial health and profitability rating. EDU is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EDU was profitable.
Of the past 5 years EDU 4 years were profitable.
In multiple years EDU reported negative operating cash flow during the last 5 years.
1.2 Ratios
EDU has a better Return On Assets (4.76%) than 69.33% of its industry peers.
EDU's Return On Equity of 10.15% is fine compared to the rest of the industry. EDU outperforms 68.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.14%, EDU is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
EDU had an Average Return On Invested Capital over the past 3 years of 5.81%. This is below the industry average of 9.60%.
The 3 year average ROIC (5.81%) for EDU is below the current ROIC(8.14%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.59%, EDU is doing good in the industry, outperforming 65.33% of the companies in the same industry.
EDU's Profit Margin has declined in the last couple of years.
The Operating Margin of EDU (9.97%) is better than 66.67% of its industry peers.
EDU's Operating Margin has declined in the last couple of years.
EDU has a better Gross Margin (55.45%) than 66.67% 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.
EDU has about the same amout of shares outstanding than it did 1 year ago.
EDU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EDU has been reduced compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, EDU is in the better half of the industry, outperforming 77.33% 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
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.
The Current ratio of EDU (1.58) is better than 61.33% 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.
The Quick ratio of EDU (1.55) is better than 65.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| 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 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%.
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)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 12.09% yearly.
The Revenue is expected to grow by 8.82% on average over the next years. This is quite good.
EPS Next Y9.72%
EPS Next 2Y11.91%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue Next Year9.56%
Revenue Next 2Y9.74%
Revenue Next 3Y10.11%
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
With a Price/Earnings ratio of 16.74, EDU is valued correctly.
Based on the Price/Earnings ratio, EDU is valued a bit cheaper than 77.33% of the companies in the same industry.
EDU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.26, EDU is valued correctly.
EDU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 78.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EDU to the average of the S&P500 Index (23.32), we can say EDU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as EDU's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)1.72
PEG (5Y)25.69
EPS Next 2Y11.91%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
EDU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.39
-1.08 (-2.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners37.83%
Inst Owner Change-13.7%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap8.34B
Analysts78.18
Price Target61.38 (17.16%)
Short Float %39.87%
Short Ratio5.13
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)0.28%
PT rev (3m)-6.79%
EPS NQ rev (1m)2.17%
EPS NQ rev (3m)21.49%
EPS NY rev (1m)0.92%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 15.26 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.28 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.13
EY5.97%
EPS(NY)3.43
Fwd EY6.56%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS30.79
BVpS23.01
TBVpS22.65
PEG (NY)1.72
PEG (5Y)25.69
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
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 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)37.89%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%177.27%
EPS Next Y9.72%
EPS Next 2Y11.91%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue 1Y (TTM)13.6%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%9.37%
Revenue Next Year9.56%
Revenue Next 2Y9.74%
Revenue Next 3Y10.11%
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