New Oriental Education & Technology Group
Market Cap
US$22.4b
Last Updated
2020/02/18 00:07 UTC
Data Sources
Company Financials +
Executive Summary
New Oriental Education & Technology Group Inc.
Rewards
Risk Analysis
No risks detected for EDU from our risk checks.
Snowflake Analysis
Exceptional growth potential with solid track record.
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: EDU has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.5%
EDU
1.6%
US Consumer Services
0.9%
US Market
1 Year Return
84.2%
EDU
35.8%
US Consumer Services
20.0%
US Market
Return vs Industry: EDU exceeded the US Consumer Services industry which returned 35% over the past year.
Return vs Market: EDU exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| EDU | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | 1.6% | 0.9% |
| 30 Day | 4.3% | 2.8% | 1.4% |
| 90 Day | 19.2% | 19.9% | 8.8% |
| 1 Year | 84.2%84.2% | 36.1%35.8% | 22.5%20.0% |
| 3 Year | 189.4%187.8% | 123.6%113.4% | 49.9%40.3% |
| 5 Year | 611.0%593.8% | 194.5%161.4% | 73.2%54.1% |
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
1 week ago | Simply Wall St
Is New Oriental Education & Technology Group (NYSE:EDU) Using Too Much Debt?Valuation
Is New Oriental Education & Technology Group undervalued compared to its fair value and its price relative to the market?
36.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EDU ($141.53) is trading below our estimate of fair value ($221.82)
Significantly Below Fair Value: EDU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EDU is poor value based on its PE Ratio (55.5x) compared to the Consumer Services industry average (25.6x).
PE vs Market: EDU is poor value based on its PE Ratio (55.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: EDU is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: EDU is overvalued based on its PB Ratio (8.6x) compared to the US Consumer Services industry average (2.2x).
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 26 analysts?
29.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EDU's forecast earnings growth (29.7% per year) is above the savings rate (1.7%).
Earnings vs Market: EDU's earnings (29.7% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EDU's revenue (20% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: EDU's revenue (20% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EDU's Return on Equity is forecast to be high in 3 years time (23.4%)
Next Steps
Past Performance
How has New Oriental Education & Technology Group performed over the past 5 years?
9.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EDU has high quality earnings.
Growing Profit Margin: EDU's current net profit margins (11.5%) are higher than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: EDU's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: EDU's earnings growth over the past year (74.6%) exceeds its 5-year average (9.7% per year).
Earnings vs Industry: EDU earnings growth over the past year (74.6%) exceeded the Consumer Services industry 14.8%.
Return on Equity
High ROE: EDU's Return on Equity (14%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is New Oriental Education & Technology Group's financial position?
Financial Position Analysis
Short Term Liabilities: EDU's short term assets ($3.9B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: EDU's short term assets ($3.9B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: EDU's debt to equity ratio (4.3%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if EDU's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: EDU's debt is well covered by operating cash flow (687.6%).
Interest Coverage: EDU earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: EDU has a high level of physical assets or inventory.
Debt Coverage by Assets: EDU's debt is covered by short term assets (assets are 33.4x debt).
Next Steps
Dividend
What is New Oriental Education & Technology Group's current dividend yield, its reliability and sustainability?
0.28%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate EDU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate EDU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if EDU's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EDU's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: EDU is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EDU's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Chenggang Zhou (57yo)
3.4yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman | 19.1yrs | no data | 12.77% $2.9b | |
| CEO & Director | 3.4yrs | no data | no data | |
| Chief Financial Officer | 4.8yrs | no data | no data | |
| Investor Relations Director | 0yrs | no data | no data | |
| Senior Adviser & Director | 12.9yrs | no data | no data | |
| Head of The Beijing School | 5.6yrs | no data | no data | |
| Managing Partner | 0yrs | no data | no data |
4.8yrs
Average Tenure
55yo
Average Age
Experienced Management: EDU's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Chairman | 19.1yrs | no data | 12.77% $2.9b | |
| CEO & Director | 3.4yrs | no data | no data | |
| Senior Adviser & Director | 12.9yrs | no data | no data | |
| Independent Director | 13.4yrs | no data | no data | |
| Independent Director | 13.4yrs | no data | no data | |
| Independent Director | 12.4yrs | no data | no data |
13.2yrs
Average Tenure
55.5yo
Average Age
Experienced Board: EDU's board of directors are seasoned and experienced ( 13.2 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: EDU
- Exchange: NYSE
- Founded: 1993
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$22.422b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EDU | NYSE (New York Stock Exchange) | Yes | SPONS ADR EA REP 1 ORD SHS | US | USD | Sep 2006 |
| N1U | DB (Deutsche Boerse AG) | Yes | SPONS ADR EA REP 1 ORD SHS | DE | EUR | Sep 2006 |
| EDU N | BMV (Bolsa Mexicana de Valores) | Yes | SPONS ADR EA REP 1 ORD SHS | MX | MXN | Sep 2006 |
| 0K75 | LSE (London Stock Exchange) | Yes | SPONS ADR EA REP 1 ORD SHS | GB | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 00:07 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/05/31 |
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.