NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
NYSE:EDU - New York Stock Exchange, Inc. - US6475812060 - ADR - Currency: USD
Taking everything into account, EDU scores 6 out of 10 in our fundamental rating. EDU was compared to 71 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of EDU get a neutral evaluation. Nothing too spectacular is happening here. EDU is valued quite cheap, while showing a decent growth score. This is a good combination! This makes EDU very considerable 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
With a decent Return On Assets value of 5.26%, EDU is doing good in the industry, outperforming 67.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.62%, EDU is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.77%, EDU belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
| 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 67.61% of its industry peers.
EDU's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 9.33%, EDU is in the better half of the industry, outperforming 69.01% of the companies in the same industry.
In the last couple of years the Operating Margin of EDU has declined.
EDU's Gross Margin of 55.03% is fine compared to the rest of the industry. EDU outperforms 70.42% 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
EDU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for EDU has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of EDU is 0.02, which is an excellent value as it means it would take EDU, only 0.02 years of fcf income to pay off all of its debts.
EDU has a Debt to FCF ratio of 0.02. This is amongst the best in the industry. EDU outperforms 91.55% 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.
The Debt to Equity ratio of EDU (0.00) is better than 76.06% 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
EDU has a Current Ratio of 1.66. 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 Current ratio of 1.66. This is in the better half of the industry: EDU outperforms 61.97% of its industry peers.
A Quick Ratio of 1.63 indicates that EDU should not have too much problems paying its short term obligations.
The Quick ratio of EDU (1.63) is better than 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| 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 13.22%, which is quite good.
EDU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.53% yearly.
EDU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.73%.
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 23.13% on average per year.
EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.19% yearly.
EPS Next Y28.13%
EPS Next 2Y24.89%
EPS Next 3Y23.13%
EPS Next 5YN/A
Revenue Next Year12.57%
Revenue Next 2Y12.79%
Revenue Next 3Y13.2%
Revenue Next 5Y10.19%
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
EDU is valuated rather expensively with a Price/Earnings ratio of 18.79.
Based on the Price/Earnings ratio, EDU is valued a bit cheaper than the industry average as 73.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (27.45), we can say EDU is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.54, the valuation of EDU can be described as correct.
EDU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 76.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EDU to the average of the S&P500 Index (21.90), we can say EDU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 98.59% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 91.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | 2.28 |
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 23.13% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y24.89%
EPS Next 3Y23.13%
5. Dividend
5.1 Amount
EDU has a Yearly Dividend Yield of 11.83%, which is a nice return.
Compared to an average industry Dividend Yield of 4.09, EDU pays a better dividend. On top of this EDU pays more dividend than 98.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, EDU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.83% |
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 2Y24.89%
EPS Next 3Y23.13%
51.48
-0.04 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners44.61%
Inst Owner Change1.63%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap8.42B
Analysts78.33
Price Target65.84 (27.89%)
Short Float %39.49%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.83% |
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)-1.86%
PT rev (3m)-8.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.01%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 14.54 | ||
| P/S | 1.76 | ||
| P/FCF | 9.63 | ||
| P/OCF | 9.63 | ||
| P/B | 2.28 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 2.28 |
EPS(TTM)2.74
EY5.32%
EPS(NY)3.54
Fwd EY6.88%
FCF(TTM)5.35
FCFY10.39%
OCF(TTM)5.35
OCFY10.39%
SpS29.31
BVpS22.54
TBVpS21.82
PEG (NY)0.67
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 Y28.13%
EPS Next 2Y24.89%
EPS Next 3Y23.13%
EPS Next 5YN/A
Revenue 1Y (TTM)18.73%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%-2.01%
Revenue Next Year12.57%
Revenue Next 2Y12.79%
Revenue Next 3Y13.2%
Revenue Next 5Y10.19%
EBIT growth 1Y15.34%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year41.3%
EBIT Next 3Y27.33%
EBIT Next 5Y19.16%
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%