In the world of growth stocks, NYSE:EDU shines as a value proposition.

Here's NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) for you, a growth stock our stock screener believes is undervalued. NYSE:EDU is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Assessment of 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 7 for growth:

• EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.52%, which is quite impressive.
• The Revenue has grown by 38.65% in the past year. This is a very strong growth!
• The Earnings Per Share is expected to grow by 35.04% on average over the next years. This is a very strong growth
• Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 19.89% 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.

Assessing Valuation Metrics for NYSE:EDU

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 7 out of 10:

• EDU's Price/Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 67.19% of the companies in the same industry.
• EDU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.38.
• 82.81% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 23.98. EDU is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 95.31% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, EDU is valued cheaper than 92.19% 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.
• A more expensive valuation may be justified as EDU's earnings are expected to grow with 35.04% in the coming years.

Health Assessment of NYSE:EDU

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:EDU has earned a 5 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.
• The Debt to FCF ratio of EDU (0.01) is better than 85.94% 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 75.00% of its industry peers.
• EDU has a better Current ratio (1.85) than 68.75% of its industry peers.
• With a decent Quick ratio value of 1.82, EDU is doing good in the industry, outperforming 68.75% of the companies in the same industry.

Profitability Assessment of 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:

• The Return On Assets of EDU (5.05%) is better than 73.44% of its industry peers.
• EDU has a better Return On Equity (9.82%) than 71.88% of its industry peers.
• EDU has a better Return On Invested Capital (7.23%) than 78.13% of its industry peers.
• EDU's Profit Margin of 8.38% is fine compared to the rest of the industry. EDU outperforms 70.31% of its industry peers.
• EDU has a Operating Margin of 9.43%. This is in the better half of the industry: EDU outperforms 67.19% of its industry peers.

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

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.