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New Oriental Education & Technology Group

NYSE:EDU
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EDU
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

New Oriental Education & Technology Group Inc. The last earnings update was 55 days ago. More info.


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EDU Share Price and Events
7 Day Returns
0.3%
NYSE:EDU
1.4%
US Consumer Services
0.1%
US Market
1 Year Returns
-13.3%
NYSE:EDU
-2.7%
US Consumer Services
1.2%
US Market
EDU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
New Oriental Education & Technology Group (EDU) 0.3% 8.2% 12.6% -13.3% 125.9% 248.4%
US Consumer Services 1.4% 4.3% 7.9% -2.7% 106% 107.4%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • EDU underperformed the Consumer Services industry which returned -2.7% over the past year.
  • EDU underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
EDU
Industry
5yr Volatility vs Market

Value

 Is New Oriental Education & Technology Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of New Oriental Education & Technology Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for New Oriental Education & Technology Group.

NYSE:EDU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EDU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.761 (1 + (1- 25%) (0.35%))
0.841
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.841 * 5.96%)
7.74%

Discounted Cash Flow Calculation for NYSE:EDU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for New Oriental Education & Technology Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EDU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.74%)
2019 324.71 Analyst x7 301.38
2020 814.74 Analyst x10 701.86
2021 961.43 Analyst x10 768.71
2022 778.00 Analyst x1 577.35
2023 926.00 Analyst x1 637.80
2024 1,081.00 Analyst x1 691.05
2025 1,130.82 Est @ 4.61% 670.95
2026 1,176.55 Est @ 4.04% 647.93
2027 1,219.50 Est @ 3.65% 623.32
2028 1,260.65 Est @ 3.37% 598.05
Present value of next 10 years cash flows $6,218.39
NYSE:EDU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,260.65 × (1 + 2.73%) ÷ (7.74% – 2.73%)
$25,838.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $25,838.43 ÷ (1 + 7.74%)10
$12,257.70
NYSE:EDU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,218.39 + $12,257.70
$18,476.09
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,476.09 / 158.69
$116.43
NYSE:EDU Discount to Share Price
Calculation Result
Value per share (USD) From above. $116.43
Current discount Discount to share price of $91.59
= -1 x ($91.59 - $116.43) / $116.43
21.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price New Oriental Education & Technology Group is available for.
Intrinsic value
21%
Share price is $91.59 vs Future cash flow value of $116.43
Current Discount Checks
For New Oriental Education & Technology Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • New Oriental Education & Technology Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • New Oriental Education & Technology Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for New Oriental Education & Technology Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are New Oriental Education & Technology Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EDU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in USD $1.64
NYSE:EDU Share Price ** NYSE (2019-06-18) in USD $91.59
United States of America Consumer Services Industry PE Ratio Median Figure of 25 Publicly-Listed Consumer Services Companies 26.02x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of New Oriental Education & Technology Group.

NYSE:EDU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EDU Share Price ÷ EPS (both in USD)

= 91.59 ÷ 1.64

55.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Oriental Education & Technology Group is overvalued based on earnings compared to the US Consumer Services industry average.
  • New Oriental Education & Technology Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does New Oriental Education & Technology Group's expected growth come at a high price?
Raw Data
NYSE:EDU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 55.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
40.3%per year
United States of America Consumer Services Industry PEG Ratio Median Figure of 16 Publicly-Listed Consumer Services Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:EDU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 55.83x ÷ 40.3%

1.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Oriental Education & Technology Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on New Oriental Education & Technology Group's assets?
Raw Data
NYSE:EDU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in USD $13.12
NYSE:EDU Share Price * NYSE (2019-06-18) in USD $91.59
United States of America Consumer Services Industry PB Ratio Median Figure of 51 Publicly-Listed Consumer Services Companies 1.96x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:EDU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EDU Share Price ÷ Book Value per Share (both in USD)

= 91.59 ÷ 13.12

6.98x

* Primary Listing of New Oriental Education & Technology Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Oriental Education & Technology Group is overvalued based on assets compared to the US Consumer Services industry average.
X
Value checks
We assess New Oriental Education & Technology Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. New Oriental Education & Technology Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is New Oriental Education & Technology Group expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
40.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is New Oriental Education & Technology Group expected to grow at an attractive rate?
  • New Oriental Education & Technology Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • New Oriental Education & Technology Group's earnings growth is expected to exceed the United States of America market average.
  • New Oriental Education & Technology Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EDU Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EDU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 40.3%
NYSE:EDU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 18.3%
United States of America Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 29.2%
United States of America Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EDU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EDU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-05-31 8,383 1
2023-05-31 6,870 2
2022-05-31 5,830 2
2021-05-31 4,859 1,204 612 21
2020-05-31 3,946 1,026 472 25
2019-05-31 3,096 600 285 25
NYSE:EDU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-28 2,955 260
2018-11-30 2,776 231
2018-08-31 2,646 261
2018-05-31 2,447 781 296
2018-02-28 2,233 286
2017-11-30 2,053 286
2017-08-31 1,927 292
2017-05-31 1,800 623 274
2017-02-28 1,708 261
2016-11-30 1,617 242
2016-08-31 1,554 237
2016-05-31 1,478 524 225

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • New Oriental Education & Technology Group's earnings are expected to grow significantly at over 20% yearly.
  • New Oriental Education & Technology Group's revenue is expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EDU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from New Oriental Education & Technology Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EDU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31
2021-05-31 3.80 4.71 3.31 15.00
2020-05-31 2.95 3.28 2.67 20.00
2019-05-31 1.78 2.19 1.64 19.00
NYSE:EDU Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-28 1.64
2018-11-30 1.46
2018-08-31 1.65
2018-05-31 1.87
2018-02-28 1.81
2017-11-30 1.81
2017-08-31 1.85
2017-05-31 1.74
2017-02-28 1.66
2016-11-30 1.54
2016-08-31 1.51
2016-05-31 1.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • New Oriental Education & Technology Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess New Oriental Education & Technology Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
New Oriental Education & Technology Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare New Oriental Education & Technology Group's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • New Oriental Education & Technology Group's year on year earnings growth rate has been positive over the past 5 years.
  • New Oriental Education & Technology Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • New Oriental Education & Technology Group's 1-year earnings growth is negative, it can't be compared to the US Consumer Services industry average.
Earnings and Revenue History
New Oriental Education & Technology Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from New Oriental Education & Technology Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EDU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 2,954.64 259.90 1,368.58
2018-11-30 2,776.00 230.86 1,296.05
2018-08-31 2,646.11 260.97 1,221.80
2018-05-31 2,447.43 296.13 1,118.73
2018-02-28 2,232.78 286.46 1,009.04
2017-11-30 2,052.55 285.71 914.93
2017-08-31 1,926.61 291.79 839.55
2017-05-31 1,799.51 274.46 787.77
2017-02-28 1,708.02 261.06 750.61
2016-11-30 1,617.08 241.88 713.40
2016-08-31 1,553.93 237.40 690.03
2016-05-31 1,478.35 224.88 668.91
2016-02-29 1,412.29 218.58 639.17
2015-11-30 1,353.11 211.62 609.41
2015-08-31 1,311.27 209.20 588.92
2015-05-31 1,246.77 193.01 566.92
2015-02-28 1,205.45 200.18 545.07
2014-11-30 1,172.12 199.71 530.85
2014-08-31 1,144.21 201.59 507.67
2014-05-31 1,138.89 215.70 493.27
2014-02-28 1,091.05 201.00 467.94
2013-11-30 1,055.11 186.93 455.75
2013-08-31 1,012.69 166.89 457.64
2013-05-31 959.85 136.68 453.11
2013-02-28 909.44 126.14 434.53
2012-11-30 860.89 121.25 414.05
2012-08-31 822.17 141.07 374.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • New Oriental Education & Technology Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • New Oriental Education & Technology Group used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.
  • New Oriental Education & Technology Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess New Oriental Education & Technology Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
New Oriental Education & Technology Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is New Oriental Education & Technology Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up New Oriental Education & Technology Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • New Oriental Education & Technology Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • New Oriental Education & Technology Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of New Oriental Education & Technology Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 59.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from New Oriental Education & Technology Group Company Filings, last reported 3 months ago.

NYSE:EDU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 2,295.12 51.10 2,734.29
2018-11-30 2,174.68 0.00 2,638.08
2018-08-31 2,217.14 0.00 2,631.99
2018-05-31 2,214.70 0.00 2,714.82
2018-02-28 2,075.55 0.00 2,517.56
2017-11-30 1,866.31 0.00 2,428.40
2017-08-31 1,860.03 0.00 2,392.89
2017-05-31 1,720.08 0.00 2,165.79
2017-02-28 1,611.14 0.00 1,970.57
2016-11-30 1,548.49 0.00 1,898.29
2016-08-31 1,569.24 0.00 1,862.82
2016-05-31 1,434.66 0.00 1,733.96
2016-02-29 1,324.24 0.00 1,550.95
2015-11-30 1,301.66 0.00 1,294.28
2015-08-31 1,261.74 0.00 1,316.02
2015-05-31 1,223.84 0.00 1,200.32
2015-02-28 1,151.09 0.00 1,059.78
2014-11-30 1,137.44 0.00 1,058.53
2014-08-31 1,156.77 0.00 1,152.89
2014-05-31 1,025.76 0.00 1,113.49
2014-02-28 991.60 0.00 1,151.62
2013-11-30 943.86 0.00 1,091.80
2013-08-31 926.91 0.00 1,118.42
2013-05-31 857.25 0.00 972.15
2013-02-28 840.59 0.00 892.87
2012-11-30 804.65 0.00 839.65
2012-08-31 794.61 0.00 890.54
  • New Oriental Education & Technology Group's level of debt (2.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 2.2% today).
  • Debt is well covered by operating cash flow (1528.7%, greater than 20% of total debt).
  • New Oriental Education & Technology Group earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess New Oriental Education & Technology Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. New Oriental Education & Technology Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from New Oriental Education & Technology Group dividends. Estimated to be 0.34% next year.
If you bought $2,000 of New Oriental Education & Technology Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate New Oriental Education & Technology Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate New Oriental Education & Technology Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EDU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
United States of America Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EDU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31
2021-05-31 0.34 16.00
2020-05-31 0.29 17.00
2019-05-31 0.18 17.00
NYSE:EDU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2013-07-23 0.350 1.431

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as New Oriental Education & Technology Group has not reported any payouts.
  • Unable to verify if New Oriental Education & Technology Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of New Oriental Education & Technology Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as New Oriental Education & Technology Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of New Oriental Education & Technology Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess New Oriental Education & Technology Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can New Oriental Education & Technology Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. New Oriental Education & Technology Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of New Oriental Education & Technology Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chenggang Zhou
AGE 56
TENURE AS CEO 2.8 years
CEO Bio

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. Mr. Zhou served as an Executive President for Domestic Business at New Oriental Education & Technology Group Inc. since September 2014 and served as its Executive Vice President. Mr. Zhou served as a Senior Vice President of New Oriental Education & Technology Group. He has been the President of Beijing New Oriental School since 2003. He served as an Executive Vice President of New Oriental Education & Technology Group since December 2006. He has been the President of Beijing New Oriental School since 2003. He served as a Senior Vice President of New Oriental Education & Technology Group from January 2006 to December 2006. He joined New Oriental Education & Technology in 2000 and served as its Vice President from 2003 to January 2006. He served as the President of Shanghai New Oriental School from 2000 to 2003. From 1998 to 2000, he served as a Correspondent for the Asia Pacific region and a Program Host at BBC. He has been an Executive Director of New Oriental Education & Technology Group since November 9, 2010. He served as Director of New Oriental Education & Technology Group from 2004 to September 3, 2007. Mr. Zhou received his Bachelor's degree in English from Suzhou University in China and his Master's degree in Communications from Macquarie University.

CEO Compensation
  • Insufficient data for Chenggang to compare compensation growth.
  • Insufficient data for Chenggang to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the New Oriental Education & Technology Group management team in years:

4.2
Average Tenure
54
Average Age
  • The tenure for the New Oriental Education & Technology Group management team is about average.
Management Team

Michael Yu

TITLE
Founder & Executive Chairman
AGE
55
TENURE
26.4 yrs

Chenggang Zhou

TITLE
CEO & Director
AGE
56
TENURE
2.8 yrs

Zhihui Yang

TITLE
Chief Financial Officer
AGE
44
TENURE
4.2 yrs

Sisi Zhao

TITLE
Investor Relations Director

Qiang Wu

TITLE
Head of The Beijing School
AGE
45
TENURE
4.9 yrs

Zheng Zhao

TITLE
Managing Partner

Louis Hsieh

TITLE
Senior Adviser & Director
AGE
54
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the New Oriental Education & Technology Group board of directors in years:

12.5
Average Tenure
54.5
Average Age
  • The average tenure for the New Oriental Education & Technology Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael Yu

TITLE
Founder & Executive Chairman
AGE
55
TENURE
18.4 yrs

Chenggang Zhou

TITLE
CEO & Director
AGE
56
TENURE
8.6 yrs

Louis Hsieh

TITLE
Senior Adviser & Director
AGE
54
TENURE
12.3 yrs

Robin Li

TITLE
Independent Director
AGE
49
TENURE
12.8 yrs

Denny Lee

TITLE
Independent Director
AGE
51
TENURE
12.8 yrs

John Yang

TITLE
Independent Director
AGE
63
TENURE
11.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess New Oriental Education & Technology Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. New Oriental Education & Technology Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Does New Oriental Education & Technology Group Inc.'s (NYSE:EDU) P/E Ratio Tell You?

View our latest analysis for New Oriental Education &amp; Technology Group How Do You Calculate New Oriental Education &amp; Technology Group's P/E Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for New Oriental Education &amp; Technology Group: P/E of 55.68 = $91.35 ÷ $1.64 (Based on the trailing twelve months to February 2019.) Is A High P/E Ratio Good? … New Oriental Education &amp; Technology Group saw earnings per share decrease by 9.5% last year.

Simply Wall St -

Calculating The Fair Value Of New Oriental Education & Technology Group Inc. (NYSE:EDU)

Today we will run through one way of estimating the intrinsic value of New Oriental Education & Technology Group Inc. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model … View our latest analysis for New Oriental Education & Technology Group

Simply Wall St -

Should You Investigate New Oriental Education & Technology Group Inc. (NYSE:EDU) At US$88.79?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Is New Oriental Education & Technology Group Inc. (NYSE:EDU) Better Than Average At Deploying Capital?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Announcing: New Oriental Education & Technology Group Stock Increased An Energizing 184% In The Last Five Years

One great example is New Oriental Education & Technology Group Inc. … See our latest analysis for New Oriental Education & Technology Group. … Over half a decade, New Oriental Education & Technology Group managed to grow its earnings per share at 11% a year.

Simply Wall St -

Calculating The Fair Value Of New Oriental Education & Technology Group Inc. (NYSE:EDU)

(NYSE:EDU) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

New Oriental Education & Technology Group Inc.'s (NYSE:EDU) Earnings Dropped -11%, Did Its Industry Show Weakness Too?

Understanding New Oriental Education & Technology Group Inc.'s (NYSE:EDU) performance as a company requires examining more than earnings from one point in time. … Today I will take you through a basic sense check to gain perspective on how New Oriental Education & Technology Group is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … View our latest analysis for New Oriental Education & Technology Group?

Simply Wall St -

A Look At New Oriental Education & Technology Group Inc.'s (NYSE:EDU) Exceptional Fundamentals

I've been keeping an eye on New Oriental Education & Technology Group Inc. … Looking at the company as a whole, as a potential stock investment, I believe EDU has a lot to offer. … is a company with

Simply Wall St -

Despite Its High P/E Ratio, Is New Oriental Education & Technology Group Inc. (NYSE:EDU) Still Undervalued?

We'll show how you can use New Oriental Education & Technology Group Inc.'s (NYSE:EDU) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, New Oriental Education & Technology Group's P/E ratio is 33.35. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Should You Know About New Oriental Education & Technology Group Inc's (NYSE:EDU) Capital Returns?

and want a simplistic look at the return on New Oriental Education & Technology Group Inc (NYSE:EDU) stock. … To understand New Oriental Education & Technology Group’s capital returns we will look at a useful metric called return on capital employed. … New Oriental Education & Technology Group's Return On Capital Employed

Simply Wall St -

Company Info

Description

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; pre-school education; 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, 2018, it offered educational programs, services, and products to students through a network of 87 schools, 994 learning centers, and 18 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People’s Republic of China.

Details
Name: New Oriental Education & Technology Group Inc.
EDU
Exchange: NYSE
Founded: 1993
$14,534,482,495
158,690,714
Website: http://www.neworiental.org
Address: New Oriental Education & Technology Group Inc.
No.6 Haidian Zhongjie,
Haidian District,
Beijing,
100080,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EDU SPONS ADR EA REP 1 ORD SHS New York Stock Exchange US USD 07. Sep 2006
DB N1U SPONS ADR EA REP 1 ORD SHS Deutsche Boerse AG DE EUR 07. Sep 2006
LSE 0K75 SPONS ADR EA REP 1 ORD SHS London Stock Exchange GB USD 07. Sep 2006
BMV EDU N SPONS ADR EA REP 1 ORD SHS Bolsa Mexicana de Valores MX MXN 07. Sep 2006
Number of employees
Current staff
Staff numbers
44,531
New Oriental Education & Technology Group employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:59
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/04/24
Last earnings reported: 2019/02/28
Last annual earnings reported: 2018/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.