In a market where value is scarce, NYSE:EDU offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 30, 2024

NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) has caught the attention of our stock screener as a great value stock. NYSE:EDU excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Exploring NYSE:EDU's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:EDU, the assigned 7 reflects its valuation:

EDU's Price/Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 64.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 80.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.86, EDU is valued a bit cheaper.
EDU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EDU is cheaper than 91.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 91.18% of the companies listed 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.

How do we evaluate the Profitability for NYSE:EDU?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:EDU, the assigned 5 is noteworthy for profitability:

EDU's Return On Assets of 5.05% is fine compared to the rest of the industry. EDU outperforms 72.06% of its industry peers.
Looking at the Return On Equity, with a value of 9.82%, EDU is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
The Return On Invested Capital of EDU (7.23%) is better than 76.47% of its industry peers.
EDU has a Profit Margin of 8.38%. This is in the better half of the industry: EDU outperforms 70.59% of its industry peers.
With a decent Operating Margin value of 9.43%, EDU is doing good in the industry, outperforming 69.12% of the companies in the same industry.
EDU's Gross Margin of 52.82% is fine compared to the rest of the industry. EDU outperforms 60.29% of its industry peers.

Health Assessment of NYSE:EDU

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:EDU, the assigned 5 reflects its health status:

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 83.82% 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 73.53% 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 67.65% of the companies in the same industry.
With a decent Quick ratio value of 1.82, EDU is doing good in the industry, outperforming 67.65% of the companies in the same industry.

Growth Assessment of 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:

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!
EDU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.00% yearly.
The Revenue is expected to grow by 12.68% on average over the next years. This is quite good.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.