When you look at NYSE:EDU, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Take a closer look at NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU), a remarkable value stock uncovered by our stock screener. NYSE:EDU excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Assessing Valuation Metrics for NYSE:EDU

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:EDU scores a 7 out of 10:

• Based on the Price/Earnings ratio, EDU is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (28.29), we can say EDU is valued slightly cheaper.
• EDU is valuated reasonably with a Price/Forward Earnings ratio of 10.73.
• Based on the Price/Forward Earnings ratio, EDU is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
• EDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
• EDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EDU is cheaper than 93.75% of the companies 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 35.00% in the coming years.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:EDU scores a 5 out of 10:

• The Return On Assets of EDU (5.05%) is better than 71.88% of its industry peers.
• EDU's Return On Equity of 9.82% is fine compared to the rest of the industry. EDU outperforms 68.75% of its industry peers.
• EDU has a better Return On Invested Capital (7.23%) than 76.56% of its industry peers.
• With a decent Profit Margin value of 8.38%, EDU is doing good in the industry, outperforming 70.31% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 9.43%, EDU is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• The Gross Margin of EDU (52.82%) is better than 62.50% of its industry peers.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:EDU was assigned a score of 5 for health:

• 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 82.81% 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 71.88% of the companies in the same industry.
• With a decent Current ratio value of 1.85, EDU is doing good in the industry, outperforming 67.19% of the companies in the same industry.
• The Quick ratio of EDU (1.82) is better than 67.19% of its industry peers.

Unpacking NYSE:EDU's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:EDU was assigned a score of 7 for growth:

• 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.
• EDU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.68% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

Our latest full fundamental report of EDU contains the most current fundamental analsysis.

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.