NEW ORIENTAL EDUCATIO-SP ADR (EDU)
US6475812060 - ADR
EDU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Diversified Consumer Services industry. EDU has only an average score on both its financial health and profitability. EDU is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, EDU could be worth investigating further for value and 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.
EDU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EDU's Return On Assets of 5.05% is fine compared to the rest of the industry. EDU outperforms 73.44% of its industry peers.
EDU has a better Return On Equity (9.82%) than 71.88% of its industry peers.
The Return On Invested Capital of EDU (7.23%) is better than 78.13% 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
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.
In the last couple of years the Profit Margin of EDU has remained more or less at the same level.
Looking at the Operating Margin, with a value of 9.43%, EDU is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
EDU's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 52.82%, EDU is in line with its industry, outperforming 57.81% of the companies in the same industry.
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 | 9.43% | ||
| 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
EDU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EDU has more shares outstanding than it did 1 year ago.
EDU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EDU has an improved debt to assets ratio.
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 has a better Debt to FCF ratio (0.01) than 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/WACC0.96
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 68.75% of its industry peers.
EDU has a Quick Ratio of 1.82. This is a normal value and indicates that EDU is financially healthy and should not expect problems in meeting its short term obligations.
EDU's Quick ratio of 1.82 is fine compared to the rest of the industry. EDU outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.52% over the past year.
Measured over the past years, EDU shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.53% on average per year.
Looking at the last year, EDU shows a very strong growth in Revenue. The Revenue has grown by 38.65%.
The Revenue has been growing slightly by 6.85% on average over the past years.
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
The Earnings Per Share is expected to grow by 35.04% on average over the next years. This is a very strong growth
Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 19.89% on average per year.
EPS Next Y44.81%
EPS Next 2Y38.66%
EPS Next 3Y35.04%
EPS Next 5YN/A
Revenue Next Year20.31%
Revenue Next 2Y20.9%
Revenue Next 3Y19.89%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 21.06, the valuation of EDU can be described as rather expensive.
Based on the Price/Earnings ratio, EDU is valued a bit cheaper than 67.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, EDU is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.22, EDU is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. EDU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.06 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 95.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EDU indicates a rather cheap valuation: EDU is cheaper than 92.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 1.51 |
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 35.04% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y38.66%
EPS Next 3Y35.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.74%, EDU is a good candidate for dividend investing.
EDU's Dividend Yield is rather good when compared to the industry average which is at 277.91. EDU pays more dividend than 96.88% of the companies in the same industry.
EDU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.74% |
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 2Y38.66%
EPS Next 3Y35.04%
NEW ORIENTAL EDUCATIO-SP ADR
NYSE:EDU (11/21/2024, 7:18:55 PM)
After market: 57.71 0 (0%)57.71
+0.99 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.06 | ||
| Fwd PE | 13.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 9.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.43% | ||
| PM (TTM) | 8.38% | ||
| GM | 52.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)74.52%
EPS 3Y-8.47%
EPS 5Y
EPS Q2Q%
EPS Next Y44.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)38.65%
Revenue growth 3Y0.29%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y