NYSE:EDU, a growth stock which is not overvalued.

Our stock screener has spotted NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) as a growth stock which is not overvalued. NYSE:EDU is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Growth looks like for NYSE:EDU

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:EDU has achieved a 7 out of 10:

• The Earnings Per Share has grown by an impressive 74.52% over the past year.
• The Revenue has grown by 38.65% in the past year. This is a very strong growth!
• EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.72% yearly.
• Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 19.72% on average per year.
• 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.

Valuation Assessment of NYSE:EDU

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:EDU has received a 7 out of 10:

• 67.69% of the companies in the same industry are more expensive than EDU, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (29.70), we can say EDU is valued slightly cheaper.
• 84.62% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 24.16, EDU is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaply inside the industry as 96.92% 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 92.31% 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.
• A more expensive valuation may be justified as EDU's earnings are expected to grow with 34.72% in the coming years.

Unpacking NYSE:EDU's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:EDU scores 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 84.62% of its industry peers.
• A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.00, EDU is doing good in the industry, outperforming 72.31% of the companies in the same industry.
• Looking at the Current ratio, with a value of 1.85, EDU is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
• EDU has a better Quick ratio (1.82) than 69.23% of its industry peers.

Assessing Profitability for NYSE:EDU

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:EDU, the assigned 5 is a significant indicator of profitability:

• EDU has a better Return On Assets (5.05%) than 72.31% of its industry peers.
• The Return On Equity of EDU (9.82%) is better than 69.23% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 7.23%, EDU is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 8.38%, EDU is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
• EDU's Operating Margin of 9.43% is fine compared to the rest of the industry. EDU outperforms 67.69% of its industry peers.

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

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.