NEW ORIENTAL EDUCATIO-SP ADR (EDU) Stock Fundamental Analysis
NYSE:EDU - New York Stock Exchange, Inc. - US6475812060 - ADR
Taking everything into account, EDU scores 6 out of 10 in our fundamental rating. EDU was compared to 71 industry peers in the Diversified Consumer Services industry. EDU has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: EDU is growing strongly while it also seems undervalued. 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.
EDU had a positive operating cash flow in the past year.
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
The Return On Assets of EDU (5.05%) is better than 71.88% of its industry peers.
Looking at the Return On Equity, with a value of 9.82%, EDU is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Return On Invested Capital of EDU (7.23%) is better than 76.56% 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.
EDU's Operating Margin of 9.43% is fine compared to the rest of the industry. EDU outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of EDU has declined.
The Gross Margin of EDU (52.82%) is better than 62.50% 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 | 9.43% | ||
| 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.
EDU has more shares outstanding than it did 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
EDU has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
EDU has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. EDU outperforms 82.81% 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 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC9.78%
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 67.19% 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 Quick ratio of 1.82. This is in the better half of the industry: EDU outperforms 67.19% 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!
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
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.
Based on estimates for the next years, EDU will show a quite strong growth in Revenue. The Revenue will grow by 12.68% on average per year.
EPS Next Y45.32%
EPS Next 2Y38.48%
EPS Next 3Y35%
EPS Next 5YN/A
Revenue Next Year19.76%
Revenue Next 2Y20.31%
Revenue Next 3Y19.74%
Revenue Next 5Y12.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 17.05, which indicates a rather expensive current valuation of EDU.
60.94% of the companies in the same industry are more expensive than EDU, based on the Price/Earnings ratio.
EDU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 10.73, which indicates a very decent valuation of EDU.
Based on the Price/Forward Earnings ratio, EDU is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, EDU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EDU is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
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 | 7.87 | ||
| EV/EBITDA | 2.74 |
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.
EDU's earnings are expected to grow with 35.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y38.48%
EPS Next 3Y35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.87%, EDU is a good candidate for dividend investing.
In the last 3 months the price of EDU has falen by -23.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
EDU's Dividend Yield is rather good when compared to the industry average which is at 4.23. EDU pays more dividend than 98.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, EDU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.87% |
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 2Y38.48%
EPS Next 3Y35%
NEW ORIENTAL EDUCATIO-SP ADR
NYSE:EDU (1/21/2025, 8:04:00 PM)
After market: 46.5 -0.21 (-0.45%)46.71
-14.13 (-23.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners44.43%
Inst Owner Change0.15%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap7.64B
Analysts86.15
Price Target89.62 (91.86%)
Short Float %52.61%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.87% |
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)-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)-0.37%
PT rev (3m)-7.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 10.73 | ||
| P/S | 1.64 | ||
| P/FCF | 7.87 | ||
| P/OCF | 7.87 | ||
| P/B | 1.92 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 2.74 |
EPS(TTM)2.74
EY5.87%
EPS(NY)4.35
Fwd EY9.32%
FCF(TTM)5.93
FCFY12.7%
OCF(TTM)5.93
OCFY12.7%
SpS28.43
BVpS24.27
TBVpS23.51
PEG (NY)0.38
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
WACC9.78%
ROIC/WACC0.74
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 2Y20.31%
Revenue Next 3Y19.74%
Revenue Next 5Y12.68%
EBIT growth 1Y38.23%
EBIT growth 3Y25.19%
EBIT growth 5Y3.03%
EBIT Next Year54.31%
EBIT Next 3Y39.54%
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%