NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
NYSE:EDU - New York Stock Exchange, Inc. - US6475812060 - ADR - Currency: USD
Taking everything into account, EDU scores 6 out of 10 in our fundamental rating. EDU was compared to 72 industry peers in the Diversified Consumer Services industry. EDU has an average financial health and profitability rating. EDU is growing strongly while it is still valued neutral. This is a good combination! These ratings would make EDU suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year EDU was profitable.
In the past year EDU had a positive cash flow from operations.
Of the past 5 years EDU 4 years were profitable.
Of the past 5 years EDU 4 years had a positive operating cash flow.
1.2 Ratios
EDU's Return On Assets of 5.13% is fine compared to the rest of the industry. EDU outperforms 75.00% of its industry peers.
EDU has a better Return On Equity (10.58%) than 68.06% of its industry peers.
The Return On Invested Capital of EDU (7.58%) is better than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 10.58% | ||
| ROIC | 7.58% |
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
With a decent Profit Margin value of 8.13%, EDU is doing good in the industry, outperforming 70.83% of the companies in the same industry.
EDU's Profit Margin has been stable in the last couple of years.
EDU has a better Operating Margin (9.06%) than 69.44% of its industry peers.
In the last couple of years the Operating Margin of EDU has declined.
EDU has a Gross Margin of 52.91%. This is in the better half of the industry: EDU outperforms 66.67% of its industry peers.
EDU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.06% | ||
| PM (TTM) | 8.13% | ||
| GM | 52.91% |
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
EDU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EDU has more shares outstanding
The number of shares outstanding for EDU has been increased compared to 5 years ago.
EDU has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of EDU (0.01) is better than 88.89% 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.
The Debt to Equity ratio of EDU (0.00) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | N/A |
ROIC/WACC1.01
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.71 indicates that EDU should not have too much problems paying its short term obligations.
The Current ratio of EDU (1.71) is better than 68.06% of its industry peers.
EDU has a Quick Ratio of 1.68. This is a normal value and indicates that EDU is financially healthy and should not expect problems in meeting its short term obligations.
EDU has a Quick ratio of 1.68. This is in the better half of the industry: EDU outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.32% over the past year.
The Earnings Per Share has been decreasing by -2.53% on average over the past years.
Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 34.42%.
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)44.32%
EPS 3Y-8.47%
EPS 5Y-2.53%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)34.42%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%19.44%
3.2 Future
The Earnings Per Share is expected to grow by 25.37% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.28% on average over the next years. This is quite good.
EPS Next Y28.83%
EPS Next 2Y25.41%
EPS Next 3Y25.37%
EPS Next 5YN/A
Revenue Next Year15.28%
Revenue Next 2Y15.97%
Revenue Next 3Y16.09%
Revenue Next 5Y11.28%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.66, EDU is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EDU indicates a somewhat cheap valuation: EDU is cheaper than 73.61% 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.
EDU is valuated correctly with a Price/Forward Earnings ratio of 12.46.
83.33% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.85. EDU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, EDU is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | -1.22 |
4.3 Compensation for Growth
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 25.37% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y25.41%
EPS Next 3Y25.37%
5. Dividend
5.1 Amount
EDU has a Yearly Dividend Yield of 13.07%, which is a nice return.
EDU's Dividend Yield is rather good when compared to the industry average which is at 5.08. EDU pays more dividend than 98.61% of the companies in the same industry.
EDU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.07% |
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 2Y25.41%
EPS Next 3Y25.37%
44.47
-0.35 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners46.58%
Inst Owner Change0.01%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap7.27B
Analysts79.17
Price Target70.45 (58.42%)
Short Float %53.98%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.07% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.32%
Min EPS beat(2)-24.94%
Max EPS beat(2)6.31%
EPS beat(4)1
Avg EPS beat(4)-22.45%
Min EPS beat(4)-50.38%
Max EPS beat(4)6.31%
EPS beat(8)2
Avg EPS beat(8)-20.27%
EPS beat(12)3
Avg EPS beat(12)-45.8%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)1.77%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)8.18%
Revenue beat(8)6
Avg Revenue beat(8)3.6%
Revenue beat(12)10
Avg Revenue beat(12)10.94%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.97%
PT rev (3m)-21.39%
EPS NQ rev (1m)-2.62%
EPS NQ rev (3m)-12.78%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-11.35%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-6.43%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 12.46 | ||
| P/S | 1.51 | ||
| P/FCF | 7.4 | ||
| P/OCF | 7.4 | ||
| P/B | 1.97 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | -1.22 |
EPS(TTM)2.67
EY6%
EPS(NY)3.57
Fwd EY8.03%
FCF(TTM)6.01
FCFY13.51%
OCF(TTM)6.01
OCFY13.51%
SpS29.46
BVpS22.62
TBVpS21.89
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 10.58% | ||
| ROCE | 9.7% | ||
| ROIC | 7.58% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 9.06% | ||
| PM (TTM) | 8.13% | ||
| GM | 52.91% | ||
| FCFM | 20.4% |
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 Turnover0.63
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 | 180.96% | ||
| Profit Quality | 251.03% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | N/A |
F-Score6
WACC7.53%
ROIC/WACC1.01
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)44.32%
EPS 3Y-8.47%
EPS 5Y-2.53%
EPS Q2Q%-24.14%
EPS Next Y28.83%
EPS Next 2Y25.41%
EPS Next 3Y25.37%
EPS Next 5YN/A
Revenue 1Y (TTM)34.42%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%19.44%
Revenue Next Year15.28%
Revenue Next 2Y15.97%
Revenue Next 3Y16.09%
Revenue Next 5Y11.28%
EBIT growth 1Y27.96%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year38.55%
EBIT Next 3Y31.13%
EBIT Next 5Y19.77%
FCF growth 1Y541.09%
FCF growth 3Y7.97%
FCF growth 5Y10.56%
OCF growth 1Y541.09%
OCF growth 3Y-0.22%
OCF growth 5Y6.86%