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

Last update: Jul 30, 2024

NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) was identified as an affordable growth stock by our stock screener. NYSE:EDU is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Unpacking NYSE:EDU's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:EDU scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 720.51% over the past year.
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.
EDU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.94% yearly.
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.

Assessing Valuation Metrics for NYSE:EDU

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:EDU was assigned a score of 5 for valuation:

Based on the Price/Forward Earnings ratio, EDU is valued a bit cheaper than 68.25% of the companies in the same industry.
EDU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EDU is cheaper than 79.37% of the companies in the same industry.
EDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EDU is cheaper than 90.48% of the companies 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.

Evaluating Health: 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:

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.
EDU's Debt to FCF ratio of 0.01 is amongst the best of 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 has a Debt to Equity ratio of 0.00. This is in the better half of the industry: EDU outperforms 69.84% of its industry peers.
EDU has a Current ratio of 1.95. This is in the better half of the industry: EDU outperforms 66.67% of its industry peers.
With a decent Quick ratio value of 1.91, EDU is doing good in the industry, outperforming 66.67% of the companies in the same industry.

Exploring NYSE:EDU's Profitability

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:

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