NYSE:EDU, a growth stock which is not overvalued.

Discover NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU), an undervalued growth gem identified by our stock screener. NYSE:EDU is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

How We Gauge Growth for NYSE:EDU

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:EDU has achieved a 7 out of 10:

• EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 283.17%, which is quite impressive.
• Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 42.17%.
• The Earnings Per Share is expected to grow by 72.59% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.92% on average over the next years. This is quite good.
• 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.

ChartMill's Evaluation of Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:EDU has earned a 5 for valuation:

• 63.08% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 84.62% of the companies listed in the same industry.
• EDU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• A more expensive valuation may be justified as EDU's earnings are expected to grow with 72.59% in the coming years.

A Closer Look at Health for NYSE:EDU

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:EDU, the assigned 6 for health provides valuable insights:

• The Debt to FCF ratio of EDU is 0.01, which is an excellent value as it means it would take EDU, only 0.01 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.01, EDU belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
• A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.00, EDU is doing good in the industry, outperforming 63.08% of the companies in the same industry.
• EDU's Current ratio of 1.87 is fine compared to the rest of the industry. EDU outperforms 63.08% of its industry peers.
• EDU has a better Quick ratio (1.84) than 63.08% of its industry peers.

Profitability Examination for NYSE:EDU

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:EDU has achieved a 5:

• EDU has a Return On Assets of 4.29%. This is in the better half of the industry: EDU outperforms 78.46% of its industry peers.
• With a decent Return On Equity value of 7.99%, EDU is doing good in the industry, outperforming 76.92% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 6.00%, EDU is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
• EDU's Profit Margin of 8.54% is amongst the best of the industry. EDU outperforms 83.08% of its industry peers.
• With a decent Operating Margin value of 9.51%, EDU is doing good in the industry, outperforming 72.31% of the companies in the same industry.
• EDU has a Gross Margin of 54.67%. This is in the better half of the industry: EDU outperforms 61.54% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of EDU

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.