NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EDU - US6475812060 - ADR
55.85 USD
+0.37 (+0.67%)
55.85 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EDU. EDU was compared to 77 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EDU was profitable.
In the past year EDU had a positive cash flow from operations.
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 better Return On Assets (4.58%) than 63.64% of its industry peers.
EDU has a better Return On Equity (9.29%) than 63.64% of its industry peers.
EDU's Return On Invested Capital of 7.94% is fine compared to the rest of the industry. EDU outperforms 74.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EDU is below the industry average of 10.17%.
The last Return On Invested Capital (7.94%) for EDU is above the 3 year average (5.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 9.29% | ||
| ROIC | 7.94% |
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 (7.36%) is better than 64.94% of its industry peers.
EDU's Profit Margin has declined in the last couple of years.
The Operating Margin of EDU (10.15%) is better than 66.23% of its industry peers.
EDU's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 55.14%, EDU is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
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 | 10.15% | ||
| PM (TTM) | 7.36% | ||
| GM | 55.14% |
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 less shares outstanding
Compared to 5 years ago, EDU has less shares outstanding
The debt/assets ratio for EDU has been reduced compared to a year ago.
2.2 Solvency
There is no outstanding debt for EDU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.65 indicates that EDU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.65, EDU is doing good in the industry, outperforming 68.83% of the companies in the same industry.
EDU has a Quick Ratio of 1.63. 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 (1.63) is better than 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.60%, 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 7.29%.
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)7.29%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%6.1%
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 13.57% yearly.
The Revenue is expected to grow by 8.82% on average over the next years. This is quite good.
EPS Next Y11.44%
EPS Next 2Y13.49%
EPS Next 3Y13.57%
EPS Next 5YN/A
Revenue Next Year10.75%
Revenue Next 2Y10.54%
Revenue Next 3Y10.01%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.79, 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 67.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (26.61), we can say EDU is valued slightly cheaper.
EDU is valuated correctly with a Price/Forward Earnings ratio of 13.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 75.32% of the companies listed in the same industry.
EDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 98.70% of the companies in the same industry.
87.01% of the companies in the same industry are more expensive than EDU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 1.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.57% in the coming years.
PEG (NY)1.55
PEG (5Y)27.3
EPS Next 2Y13.49%
EPS Next 3Y13.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, EDU has a reasonable but not impressive dividend return.
EDU's Dividend Yield is rather good when compared to the industry average which is at 0.32. EDU pays more dividend than 89.61% of the companies in the same industry.
With a Dividend Yield of 1.05, EDU pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
EDU has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y13.49%
EPS Next 3Y13.57%
55.85
+0.37 (+0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners34.49%
Inst Owner Change-12.06%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap8.89B
Revenue(TTM)4.99B
Net Income(TTM)367.01M
Analysts76.36
Price Target67.66 (21.15%)
Short Float %26.12%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.5%
Min EPS beat(2)-3.57%
Max EPS beat(2)80.56%
EPS beat(4)1
Avg EPS beat(4)12.04%
Min EPS beat(4)-24.94%
Max EPS beat(4)80.56%
EPS beat(8)2
Avg EPS beat(8)-2.16%
EPS beat(12)3
Avg EPS beat(12)-15.06%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.18%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)4.55%
Revenue beat(4)2
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)4.55%
Revenue beat(8)4
Avg Revenue beat(8)1.74%
Revenue beat(12)8
Avg Revenue beat(12)2.75%
Revenue beat(16)12
Avg Revenue beat(16)16.63%
PT rev (1m)9.8%
PT rev (3m)10.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)74.07%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 13.85 | ||
| P/S | 1.78 | ||
| P/FCF | 9.81 | ||
| P/OCF | 9.81 | ||
| P/B | 2.25 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 1.19 |
EPS(TTM)3.14
EY5.62%
EPS(NY)4.03
Fwd EY7.22%
FCF(TTM)5.69
FCFY10.19%
OCF(TTM)5.69
OCFY10.19%
SpS31.34
BVpS24.84
TBVpS24.49
PEG (NY)1.55
PEG (5Y)27.3
Graham Number41.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 9.29% | ||
| ROCE | 10.54% | ||
| ROIC | 7.94% | ||
| ROICexc | 287.98% | ||
| ROICexgc | 499.03% | ||
| OM | 10.15% | ||
| PM (TTM) | 7.36% | ||
| GM | 55.14% | ||
| FCFM | 18.16% |
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-Score6
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 | 138.96% | ||
| Profit Quality | 246.78% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | N/A |
F-Score6
WACC7.53%
ROIC/WACC1.05
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)14.6%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%0.63%
EPS Next Y11.44%
EPS Next 2Y13.49%
EPS Next 3Y13.57%
EPS Next 5YN/A
Revenue 1Y (TTM)7.29%
Revenue growth 3Y16.42%
Revenue growth 5Y6.49%
Sales Q2Q%6.1%
Revenue Next Year10.75%
Revenue Next 2Y10.54%
Revenue Next 3Y10.01%
Revenue Next 5Y8.82%
EBIT growth 1Y15.46%
EBIT growth 3YN/A
EBIT growth 5Y4.13%
EBIT Next Year50.22%
EBIT Next 3Y28.2%
EBIT Next 5Y21.35%
FCF growth 1Y-19.25%
FCF growth 3YN/A
FCF growth 5Y5.75%
OCF growth 1Y-19.25%
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.
What is the valuation status for EDU stock?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the PE and PB ratios for EDU stock?
The Price/Earnings (PE) ratio for NEW ORIENTAL EDUCATIO-SP ADR (EDU) is 17.79 and the Price/Book (PB) ratio is 2.25.
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 11.44% in the next year.