NEW ORIENTAL EDUCATIO-SP ADR (EDU)
US6475812060 - ADR
Taking everything into account, EDU scores 6 out of 10 in our fundamental rating. EDU was compared to 67 industry peers in the Diversified Consumer Services industry. EDU has only an average score on both its financial health and profitability. EDU is growing strongly while it also seems undervalued. This is an interesting combination This makes EDU very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
EDU had positive earnings in the past year.
In the past year EDU had a positive cash flow from operations.
EDU had positive earnings in 4 of the past 5 years.
EDU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EDU has a Return On Assets of 5.05%. This is in the better half of the industry: EDU outperforms 71.21% of its industry peers.
With a decent Return On Equity value of 9.82%, EDU is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Return On Invested Capital of EDU (7.23%) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.82% | ||
| ROIC | 7.23% |
ROA(3y)-4.27%
ROA(5y)-0.64%
ROE(3y)-6.31%
ROE(5y)0.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of EDU (8.38%) is better than 69.70% of its industry peers.
In the last couple of years the Profit Margin of EDU has remained more or less at the same level.
The Operating Margin of EDU (9.43%) is better than 68.18% of its industry peers.
In the last couple of years the Operating Margin of EDU has declined.
EDU has a Gross Margin of 52.82%. This is comparable to the rest of the industry: EDU outperforms 59.09% of its industry peers.
EDU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.43% | ||
| PM (TTM) | 8.38% | ||
| GM | 52.82% |
OM growth 3Y24.83%
OM growth 5Y-3.58%
PM growth 3Y-2.82%
PM growth 5Y-1.37%
GM growth 3Y0.05%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDU is destroying value.
The number of shares outstanding for EDU has been increased compared to 1 year ago.
EDU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EDU has been reduced compared to a year ago.
2.2 Solvency
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.
EDU's Debt to FCF ratio of 0.01 is amongst the best of the industry. EDU outperforms 84.85% 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 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.85 indicates that EDU should not have too much problems paying its short term obligations.
EDU has a better Current ratio (1.85) than 68.18% of its industry peers.
A Quick Ratio of 1.82 indicates that EDU should not have too much problems paying its short term obligations.
EDU has a better Quick ratio (1.82) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
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 decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.53% yearly.
The Revenue has grown by 38.65% in the past year. This is a very strong growth!
Measured over the past years, EDU shows a small growth in Revenue. The Revenue has been growing by 6.85% on average per year.
EPS 1Y (TTM)74.52%
EPS 3Y-8.47%
EPS 5Y-2.53%
EPS Q2Q%41.59%
Revenue 1Y (TTM)38.65%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%30.49%
3.2 Future
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.
EPS Next Y45.32%
EPS Next 2Y38.48%
EPS Next 3Y35%
EPS Next 5YN/A
Revenue Next Year19.76%
Revenue Next 2Y20.55%
Revenue Next 3Y19.74%
Revenue Next 5Y12.68%
3.3 Evolution
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.36, EDU is valued on the expensive side.
EDU's Price/Earnings ratio is a bit cheaper when compared to the industry. EDU is cheaper than 62.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of EDU to the average of the S&P500 Index (27.73), we can say EDU is valued inline with the index average.
With a Price/Forward Earnings ratio of 14.08, EDU is valued correctly.
Based on the Price/Forward Earnings ratio, EDU is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, EDU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 93.94% of the companies in the same industry.
EDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EDU is cheaper than 89.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.33 | ||
| EV/EBITDA | 2.87 |
4.3 Compensation for Growth
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.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y38.48%
EPS Next 3Y35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.80%, EDU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.34, EDU pays a better dividend. On top of this EDU pays more dividend than 98.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, EDU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.8% |
5.2 History
EDU has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y38.48%
EPS Next 3Y35%
NEW ORIENTAL EDUCATIO-SP ADR
NYSE:EDU (12/20/2024, 8:06:35 PM)
After market: 61.3 +0.03 (+0.05%)61.27
+1.23 (+2.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners44.43%
Inst Owner Change-3.71%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap10.02B
Analysts86.15
Price Target89.95 (46.81%)
Short Float %3.55%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.8% |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-22.04%
Min EPS beat(2)-50.38%
Max EPS beat(2)6.31%
EPS beat(4)1
Avg EPS beat(4)-16.35%
Min EPS beat(4)-50.38%
Max EPS beat(4)6.31%
EPS beat(8)2
Avg EPS beat(8)-28.61%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.42%
Revenue beat(4)2
Avg Revenue beat(4)2.73%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)8.18%
Revenue beat(8)6
Avg Revenue beat(8)3.75%
Revenue beat(12)10
Avg Revenue beat(12)21.92%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.77%
PT rev (3m)-8.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.35%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.5%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 14.08 | ||
| P/S | 2.16 | ||
| P/FCF | 10.33 | ||
| P/OCF | 10.33 | ||
| P/B | 2.52 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 2.87 |
EPS(TTM)2.74
EY4.47%
EPS(NY)4.35
Fwd EY7.1%
FCF(TTM)5.93
FCFY9.68%
OCF(TTM)5.93
OCFY9.68%
SpS28.43
BVpS24.27
TBVpS23.51
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.82% | ||
| ROCE | 9.24% | ||
| ROIC | 7.23% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 9.43% | ||
| PM (TTM) | 8.38% | ||
| GM | 52.82% | ||
| FCFM | 20.87% |
ROA(3y)-4.27%
ROA(5y)-0.64%
ROE(3y)-6.31%
ROE(5y)0.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y24.83%
OM growth 5Y-3.58%
PM growth 3Y-2.82%
PM growth 5Y-1.37%
GM growth 3Y0.05%
GM growth 5Y-1.14%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 177.93% | ||
| Profit Quality | 248.97% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | N/A |
F-Score6
WACC7.53%
ROIC/WACC0.96
Cap/Depr(3y)142.64%
Cap/Depr(5y)164.49%
Cap/Sales(3y)5.14%
Cap/Sales(5y)6.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)74.52%
EPS 3Y-8.47%
EPS 5Y-2.53%
EPS Q2Q%41.59%
EPS Next Y45.32%
EPS Next 2Y38.48%
EPS Next 3Y35%
EPS Next 5YN/A
Revenue 1Y (TTM)38.65%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%30.49%
Revenue Next Year19.76%
Revenue Next 2Y20.55%
Revenue Next 3Y19.74%
Revenue Next 5Y12.68%
EBIT growth 1Y38.23%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year54.79%
EBIT Next 3Y38.66%
EBIT Next 5Y22.07%
FCF growth 1Y5.47%
FCF growth 3Y7.97%
FCF growth 5Y10.56%
OCF growth 1Y15.62%
OCF growth 3Y-0.22%
OCF growth 5Y6.86%