NYSE:EDU stands out as a growth opportunity that won't break the bank.

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.

How We Gauge Growth for NYSE:EDU

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:EDU, the assigned 8 reflects its growth potential:

• 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 76.91% yearly.
• The Revenue is expected to grow by 23.07% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

ChartMill's Evaluation of Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:EDU has achieved a 5 out of 10:

• Based on the Price/Forward Earnings ratio, EDU is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, EDU is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 84.13% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• EDU's earnings are expected to grow with 76.91% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NYSE:EDU

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:EDU has received 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 Debt to FCF ratio of 0.01. This is amongst the best in the industry. EDU outperforms 87.30% 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 69.84% of its industry peers.
• EDU has a better Current ratio (1.95) than 66.67% of its industry peers.
• EDU's Quick ratio of 1.91 is fine compared to the rest of the industry. EDU outperforms 66.67% of its industry peers.

Exploring NYSE:EDU's Profitability

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:

• EDU has a Return On Assets of 4.33%. This is in the better half of the industry: EDU outperforms 76.19% of its industry peers.
• EDU's Return On Equity of 8.04% is fine compared to the rest of the industry. EDU outperforms 69.84% of its industry peers.
• EDU's Return On Invested Capital of 6.68% is fine compared to the rest of the industry. EDU outperforms 76.19% of its industry peers.
• With a decent Profit Margin value of 7.72%, EDU is doing good in the industry, outperforming 73.02% of the companies in the same industry.
• EDU's Operating Margin of 9.61% is fine compared to the rest of the industry. EDU outperforms 69.84% of its industry peers.

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

Our latest full fundamental report of EDU contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.