Despite its growth, NYSE:EDU remains within the realm of affordability.

Take a closer look at NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU), an affordable growth stock uncovered by our stock screener. NYSE:EDU boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Growth Metrics 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:

• 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.
• EDU shows a strong growth in Revenue. In the last year, 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 35.00% yearly.
• EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.68% 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.

How We Gauge Valuation for NYSE:EDU

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:

• Compared to the rest of the industry, the Price/Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 65.08% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.63. EDU is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, EDU is valued cheaper than 85.71% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 23.76. EDU is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 96.83% of the companies listed in the same industry.
• 92.06% of the companies in the same industry are more expensive than EDU, based on the Price/Free Cash Flow ratio.
• 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 35.00% in the coming years.

What does the Health looks like for NYSE:EDU

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 82.54% of the companies in the same industry.
• A Debt/Equity ratio of 0.00 indicates that EDU is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.00, EDU is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
• EDU's Current ratio of 1.85 is fine compared to the rest of the industry. EDU outperforms 68.25% of its industry peers.
• Looking at the Quick ratio, with a value of 1.82, EDU is in the better half of the industry, outperforming 68.25% of the companies in the same industry.

Understanding NYSE:EDU's Profitability

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 71.43% of its industry peers.
• The Return On Equity of EDU (9.82%) is better than 68.25% of its industry peers.
• EDU has a better Return On Invested Capital (7.23%) than 76.19% of its industry peers.
• The Profit Margin of EDU (8.38%) is better than 69.84% of its industry peers.
• EDU has a better Operating Margin (9.43%) than 68.25% of its industry peers.
• The Gross Margin of EDU (52.82%) is better than 61.90% of its industry peers.

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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.