New Oriental Education & Technology Group
Market Cap
US$3.3b
Last Updated
2021/09/22 00:19 UTC
Data Sources
Company Financials +
Executive Summary
New Oriental Education & Technology Group Inc. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with excellent balance sheet.
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 is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 22% a week.
Volatility Over Time: EDU's weekly volatility has increased from 14% to 22% over the past year.
Market Performance
7 Day Return
-5.0%
EDU
0.2%
US Consumer Services
-1.8%
US Market
1 Year Return
-87.6%
EDU
-54.5%
US Consumer Services
31.5%
US Market
Return vs Industry: EDU underperformed the US Consumer Services industry which returned -55.5% over the past year.
Return vs Market: EDU underperformed the US Market which returned 33% over the past year.
Shareholder returns
| EDU | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.0% | 0.2% | -1.8% |
| 30 Day | 4.4% | 1.8% | -0.9% |
| 90 Day | -76.6% | -28.7% | 0.8% |
| 1 Year | -87.6%-87.6% | -54.4%-54.5% | 33.5%31.5% |
| 3 Year | -74.2%-74.2% | -23.7%-26.9% | 57.5%47.8% |
| 5 Year | -59.5%-59.7% | 42.5%33.7% | 119.1%95.3% |
Long-Term 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
Valuation
Is New Oriental Education & Technology Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EDU ($1.9) is trading below our estimate of fair value ($18.68)
Significantly Below Fair Value: EDU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EDU is good value based on its PE Ratio (8.3x) compared to the US Consumer Services industry average (14.3x).
PE vs Market: EDU is good value based on its PE Ratio (8.3x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: EDU is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: EDU is good value based on its PB Ratio (0.7x) compared to the US Consumer Services industry average (1.9x).
Future Growth
How is New Oriental Education & Technology Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
18.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EDU's forecast earnings growth (18.8% per year) is above the savings rate (2%).
Earnings vs Market: EDU's earnings (18.8% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: EDU's earnings are forecast to grow, but not significantly.
Revenue vs Market: EDU's revenue (15.6% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: EDU's revenue (15.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EDU's Return on Equity is forecast to be low in 3 years time (18%).
Past Performance
How has New Oriental Education & Technology Group performed over the past 5 years?
12.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EDU has high quality earnings.
Growing Profit Margin: EDU's current net profit margins (10.2%) are lower than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: EDU's earnings have grown by 12.2% per year over the past 5 years.
Accelerating Growth: EDU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EDU had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Consumer Services industry average (35.4%).
Return on Equity
High ROE: EDU's Return on Equity (5.8%) is considered low.
Financial Health
How is New Oriental Education & Technology Group's financial position?
Financial Position Analysis
Short Term Liabilities: EDU's short term assets ($6.4B) exceed its short term liabilities ($3.2B).
Long Term Liabilities: EDU's short term assets ($6.4B) exceed its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: EDU's debt to equity ratio (5.9%) 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 (314%).
Interest Coverage: EDU earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is New Oriental Education & Technology Group current dividend yield, its reliability and sustainability?
0.46%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EDU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EDU'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 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?
5.7yrs
Average management tenure
CEO
Chenggang Zhou (59 yo)
5yrs
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
Experienced Management: EDU's management team is seasoned and experienced (5.7 years average tenure).
Board Members
Experienced Board: EDU's board of directors are seasoned and experienced ( 14.8 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 been diluted in the past year, with total shares outstanding growing by 8.1%.
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$3.257b
- Shares outstanding: 1.71b
- Website: https://www.neworiental.org
Number of Employees
Location
- New Oriental Education & Technology Group Inc.
- No. 6 Hai Dian Zhong Street
- Haidian District
- Beijing
- 100080
- China
Listings
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 K-12 AST, Test Preparation and Other...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/22 00:19 |
| End of Day Share Price | 2021/09/21 00:00 |
| Earnings | 2021/02/28 |
| Annual Earnings | 2020/05/31 |
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.