LSE:0K75

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New Oriental Education & Technology Group

Executive Summary

New Oriental Education & Technology Group Inc.


Snowflake Analysis

Solid track record with high growth potential.


Similar Companies

Share Price & News

How has New Oriental Education & Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0K75's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-22.5%

0K75

-2.4%

GB Consumer Services

2.8%

GB Market


1 Year Return

9.5%

0K75

-10.9%

GB Consumer Services

-11.0%

GB Market

Return vs Industry: 0K75 exceeded the UK Consumer Services industry which returned -10.9% over the past year.

Return vs Market: 0K75 exceeded the UK Market which returned -11% over the past year.


Shareholder returns

0K75IndustryMarket
7 Day-22.5%-2.4%2.8%
30 Day-20.4%0.5%8.4%
90 Day-28.7%-14.7%-7.9%
1 Year9.5%9.5%-10.2%-10.9%-6.7%-11.0%
3 Yearn/a-3.9%-8.9%-3.7%-15.4%
5 Yearn/a-40.1%-56.6%15.4%-10.4%

Price Volatility Vs. Market

How volatile is New Oriental Education & Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is New Oriental Education & Technology Group undervalued compared to its fair value and its price relative to the market?

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0K75 ($95.91) is trading below our estimate of fair value ($96.19)

Significantly Below Fair Value: 0K75 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0K75 is poor value based on its PE Ratio (45.5x) compared to the Consumer Services industry average (15.6x).

PE vs Market: 0K75 is poor value based on its PE Ratio (45.5x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: 0K75 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 0K75 is overvalued based on its PB Ratio (7.3x) compared to the GB Consumer Services industry average (3x).


Next Steps

Future Growth

How is New Oriental Education & Technology Group forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0K75's forecast earnings growth (29.1% per year) is above the savings rate (1.2%).

Earnings vs Market: 0K75's earnings (29.1% per year) are forecast to grow faster than the UK market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0K75's revenue (19.9% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: 0K75's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0K75's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has New Oriental Education & Technology Group performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0K75 has high quality earnings.

Growing Profit Margin: 0K75's current net profit margins (12.2%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: 0K75's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: 0K75's earnings growth over the past year (70.8%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: 0K75 earnings growth over the past year (70.8%) exceeded the Consumer Services industry 20.8%.


Return on Equity

High ROE: 0K75's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is New Oriental Education & Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 0K75's short term assets ($3.9B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: 0K75's short term assets ($3.9B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: 0K75's debt to equity ratio (4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 0K75's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 0K75's debt is well covered by operating cash flow (685.5%).

Interest Coverage: 0K75 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is New Oriental Education & Technology Group's current dividend yield, its reliability and sustainability?

0.26%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 0K75's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 0K75's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0K75's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0K75's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 0K75 is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0K75's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Chenggang Zhou (57yo)

3.75yrs

Tenure

Mr. Chenggang Zhou has been the Chief Executive Officer of New Oriental Education & Technology Group Inc. since September 1, 2016 and served as its President since January 5, 2016 until January 20, 2017. M ...


Leadership Team

NamePositionTenureCompensationOwnership
Minhong Yu
Founder & Executive Chairman19.42yrsno data12.77% $2.6b
Chenggang Zhou
CEO & Director3.75yrsno datano data
Zhihui Yang
Chief Financial Officer5.17yrsno datano data
Sisi Zhao
Investor Relations Directorno datano datano data
Tung-Jung Hsieh
Senior Adviser & Director13.25yrsno datano data
Qiang Wu
Head of The Beijing School5.92yrsno datano data
Zheng Zhao
Managing Partnerno datano datano data

5.2yrs

Average Tenure

55yo

Average Age

Experienced Management: 0K75's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Minhong Yu
Founder & Executive Chairman19.42yrsno data12.77% $2.6b
Chenggang Zhou
CEO & Director3.75yrsno datano data
Tung-Jung Hsieh
Senior Adviser & Director13.25yrsno datano data
Yanhong Li
Independent Director13.75yrsno datano data
Ting Bun Lee
Independent Director13.75yrsno datano data
Zhuang Yang
Independent Director12.75yrsno datano data

13.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 0K75's board of directors are seasoned and experienced ( 13.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

New Oriental Education & Technology Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Oriental Education & Technology Group Inc.
  • Ticker: 0K75
  • Exchange: LSE
  • Founded: 1993
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$20.197b
  • Shares outstanding: 158.43m
  • Website: https://www.neworiental.org

Number of Employees


Location

  • New Oriental Education & Technology Group Inc.
  • No.6 Haidian Zhongjie
  • Haidian District
  • Beijing
  • 100080
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDUNYSE (New York Stock Exchange)YesSPONS ADR EA REP 1 ORD SHSUSUSDSep 2006
N1UDB (Deutsche Boerse AG)YesSPONS ADR EA REP 1 ORD SHSDEEURSep 2006
EDU NBMV (Bolsa Mexicana de Valores)YesSPONS ADR EA REP 1 ORD SHSMXMXNSep 2006
0K75LSE (London Stock Exchange)YesSPONS ADR EA REP 1 ORD SHSGBUSDSep 2006

Biography

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People’s Republic of China. It operates through Language Training and Test Preparation Courses, and Others segments. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People’s Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to achieve better scores on entrance exams for admission into high schools or higher education institutions, as well as for children to teach English. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs that include college, K-12, and pre-school education. In addition, the company offers overseas studies consulting; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs, as well as overseas study tour services. As of May 31, 2019, it offered educational programs, services, and products to students through a network of 95 schools, 1,159 learning centers, and 15 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 12:09
End of Day Share Price2020/06/01 00:00
Earnings2020/02/29
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.