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New Oriental Education & Technology Group

Executive Summary

New Oriental Education & Technology Group Inc. More Details


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

4.2%

EDU

-6.1%

US Consumer Services

-1.4%

US Market


1 Year Return

42.2%

EDU

43.7%

US Consumer Services

17.8%

US Market

Return vs Industry: EDU underperformed the US Consumer Services industry which returned 56.8% over the past year.

Return vs Market: EDU exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

EDUIndustryMarket
7 Day4.2%-6.1%-1.4%
30 Day13.6%1.4%4.7%
90 Day24.5%5.4%8.2%
1 Year42.2%42.2%44.1%43.7%20.5%17.8%
3 Year101.4%101.4%63.8%58.2%42.2%32.7%
5 Year528.1%524.8%260.1%234.5%83.4%62.7%

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?

8.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDU ($175.98) is trading below our estimate of fair value ($187.71)

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


Price To Earnings Ratio

PE vs Industry: EDU is poor value based on its PE Ratio (73.6x) compared to the US Consumer Services industry average (43.3x).

PE vs Market: EDU is poor value based on its PE Ratio (73.6x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EDU is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: EDU is overvalued based on its PB Ratio (9.2x) compared to the US Consumer Services industry average (2.6x).


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?

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDU's forecast earnings growth (36.4% per year) is above the savings rate (2.2%).

Earnings vs Market: EDU's earnings (36.4% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: EDU's revenue (21.7% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: EDU's revenue (21.7% 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 (22.3%)


Next Steps

Past Performance

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

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDU has high quality earnings.

Growing Profit Margin: EDU's current net profit margins (10.8%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: EDU's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: EDU's earnings growth over the past year (16.7%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: EDU earnings growth over the past year (16.7%) exceeded the Consumer Services industry 7.9%.


Return on Equity

High ROE: EDU's Return on Equity (9.6%) is considered low.


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 ($4.4B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: EDU's short term assets ($4.4B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: EDU's debt to equity ratio (9.5%) 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 (269.7%).

Interest Coverage: EDU 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 current dividend yield, its reliability and sustainability?

0.072%

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?

5.5yrs

Average management tenure


CEO

Chenggang Zhou (58 yo)

4.08yrs

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 Chairman19.75yrsno data12.46%
$ 3.4b
Chenggang Zhou
CEO & Director4.08yrsno datano data
Zhihui Yang
Chief Financial Officer5.5yrsno datano data
Sisi Zhao
Investor Relations Directorno datano datano data
Tung-Jung Hsieh
Senior Adviser & Director13.58yrsno datano data
Qiang Wu
Head of The Beijing School6.25yrsno datano data
Zheng Zhao
Managing Partnerno datano datano data

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: EDU's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Minhong Yu
Founder & Executive Chairman19.75yrsno data12.46%
$ 3.4b
Chenggang Zhou
CEO & Director4.08yrsno datano data
Tung-Jung Hsieh
Senior Adviser & Director13.58yrsno datano data
Yanhong Li
Independent Director14.08yrsno datano data
Ting Bun Lee
Independent Director14.08yrsno datano data
Zhuang Yang
Independent Director13.08yrsno datano data

13.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: EDU's board of directors are seasoned and experienced ( 13.8 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 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$27.250b
  • Shares outstanding: 158.54m
  • 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

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 K-12 AST, Test Preparation and Other ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:44
End of Day Share Price2020/10/22 00:00
Earnings2020/08/31
Annual Earnings2020/05/31


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.