The Bull Case For New Oriental Education & Technology Group (EDU) Could Change Following Completion of $742 Million Share Buyback Program - Learn Why

• Between March 1 and April 30, 2025, New Oriental Education & Technology Group repurchased 2,157,320 shares for US$97.87 million, marking the full completion of its share buyback program announced in July 2022, totaling 15,111,753 shares for US$741.77 million.
• This substantial reduction in share count reflects management's commitment to returning capital to shareholders and could influence perceptions of future earnings growth.
• We'll examine how the completion of this extensive buyback may shape New Oriental's forward-looking investment narrative and capital allocation approach.

Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

New Oriental Education & Technology Group Investment Narrative Recap

To be a shareholder in New Oriental Education & Technology Group, you need to believe in the company’s ability to drive growth from new education services while managing the ongoing risk of regulatory change and intensifying competition. The completed share buyback program, while a positive display of management’s capital return discipline, is unlikely to materially alter the most important short-term catalyst, momentum in non-academic and AI-powered products, or lessen the biggest risk of policy-driven revenue headwinds. A recent catalyst closely connected to the buyback news is the company’s continued rollout of its omnichannel, AI-driven learning platforms, which contributed to improved operating margins and product diversification. Progress on these efficiency gains and their impact on blended margins remains a key area of interest as investors evaluate New Oriental’s next stage of growth. By contrast, investors will want to note the potential for future regulatory or demographic changes to...

Read the full narrative on New Oriental Education & Technology Group (it's free!)

New Oriental Education & Technology Group's outlook anticipates $6.5 billion in revenue and $628.5 million in earnings by 2028. This is based on expected annual revenue growth of 9.7% and an earnings increase of $256.8 million from current earnings of $371.7 million.

Uncover how New Oriental Education & Technology Group's forecasts yield a $57.53 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Four private investors in the Simply Wall St Community estimated New Oriental’s fair value from US$38.90 to US$128.64 per share. While their views vary widely, many are factoring in scale from new AI-powered offerings and continued earnings growth, raising important questions about the company’s ability to sustain momentum.

Explore 4 other fair value estimates on New Oriental Education & Technology Group - why the stock might be worth over 2x more than the current price!

Build Your Own New Oriental Education & Technology Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Oriental Education & Technology Group research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free New Oriental Education & Technology Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Oriental Education & Technology Group's overall financial health at a glance.

Searching For A Fresh Perspective?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Outshine the giants: these 25 early-stage AI stocks could fund your retirement.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com