NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
NYSE:EDU - New York Stock Exchange, Inc. - US6475812060 - ADR - Currency: USD
Overall EDU gets a fundamental rating of 6 out of 10. We evaluated EDU against 71 industry peers in the Diversified Consumer Services industry. EDU has an average financial health and profitability rating. An interesting combination arises when we look at growth and value: EDU is growing strongly while it also seems undervalued. These ratings could make EDU a good candidate 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.
Of the past 5 years EDU 4 years were profitable.
EDU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.13%, EDU is doing good in the industry, outperforming 71.88% of the companies in the same industry.
EDU's Return On Equity of 10.58% is fine compared to the rest of the industry. EDU outperforms 68.75% of its industry peers.
The Return On Invested Capital of EDU (7.58%) is better than 78.13% 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
EDU has a better Profit Margin (8.13%) than 70.31% of its industry peers.
In the last couple of years the Profit Margin of EDU has remained more or less at the same level.
With a decent Operating Margin value of 9.06%, EDU is doing good in the industry, outperforming 65.63% of the companies in the same industry.
EDU's Operating Margin has declined in the last couple of years.
EDU has a Gross Margin of 52.91%. This is in the better half of the industry: EDU outperforms 65.63% of its industry peers.
In the last couple of years the Gross Margin of EDU has remained more or less at the same level.
| 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 below the Cost of Capital (WACC), which means it 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.
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.
EDU's Debt to FCF ratio of 0.01 is amongst the best of the industry. EDU outperforms 84.38% 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.
EDU's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. EDU outperforms 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.71 indicates that EDU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, EDU is doing good in the industry, outperforming 65.63% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that EDU should not have too much problems paying its short term obligations.
EDU's Quick ratio of 1.68 is fine compared to the rest of the industry. EDU outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
EDU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.32%, which is quite impressive.
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 27.73% 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 Y29.88%
EPS Next 2Y28.66%
EPS Next 3Y27.73%
EPS Next 5YN/A
Revenue Next Year15.74%
Revenue Next 2Y16.87%
Revenue Next 3Y16.88%
Revenue Next 5Y11.28%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.61, the valuation of EDU can be described as rather expensive.
68.75% of the companies in the same industry are more expensive than EDU, based on the Price/Earnings ratio.
EDU is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.93, EDU is valued correctly.
84.38% of the companies in the same industry are more expensive than EDU, based on the Price/Forward Earnings ratio.
EDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaper than 95.31% of the companies in the same industry.
93.75% of the companies in the same industry are more expensive than EDU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 1.52 |
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 27.73% in the coming years.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y28.66%
EPS Next 3Y27.73%
5. Dividend
5.1 Amount
EDU has a Yearly Dividend Yield of 10.56%, which is a nice return.
EDU's Dividend Yield is rather good when compared to the industry average which is at 4.39. EDU pays more dividend than 98.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, EDU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.56% |
5.2 History
EDU has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.66%
EPS Next 3Y27.73%
52.35
-1.58 (-2.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners44.43%
Inst Owner Change3.1%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap8.56B
Analysts80
Price Target72.19 (37.9%)
Short Float %57.34%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.56% |
Yearly Dividend0
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)-19.44%
PT rev (3m)-25.17%
EPS NQ rev (1m)-10.43%
EPS NQ rev (3m)-30.07%
EPS NY rev (1m)-10.62%
EPS NY rev (3m)-10.31%
Revenue NQ rev (1m)-5.66%
Revenue NQ rev (3m)-18.72%
Revenue NY rev (1m)-3.36%
Revenue NY rev (3m)-3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 13.93 | ||
| P/S | 1.78 | ||
| P/FCF | 8.71 | ||
| P/OCF | 8.71 | ||
| P/B | 2.31 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 1.52 |
EPS(TTM)2.67
EY5.1%
EPS(NY)3.76
Fwd EY7.18%
FCF(TTM)6.01
FCFY11.48%
OCF(TTM)6.01
OCFY11.48%
SpS29.46
BVpS22.62
TBVpS21.89
PEG (NY)0.66
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
WACC9.03%
ROIC/WACC0.84
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 Y29.88%
EPS Next 2Y28.66%
EPS Next 3Y27.73%
EPS Next 5YN/A
Revenue 1Y (TTM)34.42%
Revenue growth 3Y0.29%
Revenue growth 5Y6.85%
Sales Q2Q%19.44%
Revenue Next Year15.74%
Revenue Next 2Y16.87%
Revenue Next 3Y16.88%
Revenue Next 5Y11.28%
EBIT growth 1Y27.96%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year42.48%
EBIT Next 3Y33.93%
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%