For those who appreciate growth without the sticker shock, NYSE:EDU is worth considering.

Last update: Dec 25, 2024

Our stock screener has singled out NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) as an attractive growth opportunity. NYSE:EDU is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

How do we evaluate the Growth for NYSE:EDU?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:EDU has received a 7 out of 10:

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!
Based on estimates for the next years, EDU will show a very strong growth in Earnings Per Share. The EPS will grow by 35.00% on average per year.
Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 12.68% 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.

Looking at the Valuation

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 6 for valuation:

Based on the Price/Earnings ratio, EDU is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 78.79% of the companies listed in the same industry.
EDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EDU is valued cheaper than 90.91% 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 35.00% in the coming years.

ChartMill's Evaluation of Health

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.
With an excellent Debt to FCF ratio value of 0.01, EDU belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
EDU's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. EDU outperforms 72.73% of its industry peers.
With a decent Current ratio value of 1.85, EDU is doing good in the industry, outperforming 68.18% of the companies in the same industry.
With a decent Quick ratio value of 1.82, EDU is doing good in the industry, outperforming 68.18% of the companies in the same industry.

How do we evaluate the Profitability for 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 71.21% of its industry peers.
EDU has a better Return On Equity (9.82%) than 68.18% 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 75.76% of the companies in the same industry.
EDU's Profit Margin of 8.38% is fine compared to the rest of the industry. EDU outperforms 69.70% of its industry peers.
With a decent Operating Margin value of 9.43%, EDU is doing good in the industry, outperforming 68.18% of the companies in the same industry.

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

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

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.