NYSE:EDU is probably undervalued for the fundamentals it is displaying.

Last update: Nov 22, 2024

Uncover the hidden value in NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) as our stock screening tool recommends it as an undervalued choice. NYSE:EDU maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis for NYSE:EDU

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 7 out of 10:

Based on the Price/Earnings ratio, EDU is valued a bit cheaper than 67.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, EDU is valued a bit cheaper.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EDU to the average of the S&P500 Index (23.82), we can say EDU is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 95.31% 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 92.19% of the companies in the same industry.
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 35.04% in the coming years.

Analyzing Profitability Metrics

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:

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

ChartMill's Evaluation of Health

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 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.
EDU has a better Debt to FCF ratio (0.01) than 84.38% 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 73.44% of the companies in the same industry.
With a decent Current ratio value of 1.85, EDU is doing good in the industry, outperforming 68.75% of the companies in the same industry.
EDU's Quick ratio of 1.82 is fine compared to the rest of the industry. EDU outperforms 68.75% of its industry peers.

What does the Growth looks like for NYSE:EDU

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:EDU boasts a 7 out of 10:

The Earnings Per Share has grown by an impressive 74.52% over the past year.
Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 38.65%.
EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.04% yearly.
EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.89% yearly.
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.

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

Disclaimer

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.