Despite its growth, NYSE:EDU remains within the realm of affordability.

NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) has caught the eye of our stock screener as an affordable growth stock. NYSE:EDU is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Assessing Growth for NYSE:EDU

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:EDU has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 720.51% over the past year.
• EDU shows a strong growth in Revenue. In the last year, the Revenue has grown by 51.72%.
• The Earnings Per Share is expected to grow by 79.44% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 23.07% on average over the next years. This is a very strong growth
• 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.

Deciphering NYSE:EDU's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:EDU scores a 5 out of 10:

• EDU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 60.94% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 64.06% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, EDU is valued cheaply inside the industry as 84.38% 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.

Health Insights: NYSE:EDU

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:EDU has achieved a 6 out of 10:

• 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 has a better Debt to FCF ratio (0.01) than 89.06% 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.
• Looking at the Debt to Equity ratio, with a value of 0.00, EDU is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
• EDU has a better Current ratio (1.95) than 70.31% of its industry peers.
• The Quick ratio of EDU (1.91) is better than 70.31% of its industry peers.

Evaluating Profitability: NYSE:EDU

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:EDU was assigned a score of 5 for profitability:

• With a decent Return On Assets value of 4.33%, EDU is doing good in the industry, outperforming 75.00% of the companies in the same industry.
• EDU's Return On Equity of 8.04% is fine compared to the rest of the industry. EDU outperforms 71.88% 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.
• EDU has a Profit Margin of 7.72%. This is in the better half of the industry: EDU outperforms 73.44% of its industry peers.
• With a decent Operating Margin value of 9.61%, EDU is doing good in the industry, outperforming 68.75% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.