NYSE:EDU is not too expensive for the growth it is showing.

Last update: May 3, 2024

Take a closer look at NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU), an affordable growth stock uncovered by our stock screener. NYSE:EDU boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

What does the Growth looks like for NYSE:EDU

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:EDU was assigned a score of 8 for growth:

EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 720.51%, which is quite impressive.
Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 51.72%.
EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.44% yearly.
Based on estimates for the next years, EDU will show a very strong growth in Revenue. The Revenue will grow by 23.07% on average per year.
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.

Deciphering NYSE:EDU's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:EDU boasts a 5 out of 10:

71.88% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
Based on the Enterprise Value to EBITDA ratio, EDU is valued a bit cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EDU is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
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 79.44% in the coming years.

How We Gauge Health for NYSE:EDU

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:EDU, the assigned 6 reflects its health status:

EDU has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
EDU's Debt to FCF ratio of 0.01 is amongst the best of the industry. EDU outperforms 90.63% 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.
EDU's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. EDU outperforms 70.31% of its industry peers.
EDU's Current ratio of 1.95 is fine compared to the rest of the industry. EDU outperforms 70.31% of its industry peers.
EDU's Quick ratio of 1.91 is fine compared to the rest of the industry. EDU outperforms 70.31% of its industry peers.

Profitability Analysis for NYSE:EDU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:EDU, the assigned 5 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 4.33%, EDU is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
EDU has a better Return On Equity (8.04%) than 73.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.68%, EDU is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
With a decent Profit Margin value of 7.72%, EDU is doing good in the industry, outperforming 76.56% of the companies in the same industry.
EDU has a Operating Margin of 9.61%. This is in the better half of the industry: EDU outperforms 70.31% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of EDU for a complete fundamental analysis.

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.