EDU Stock Analysis: New Oriental Education | NYSE
Education & Training Services | NYSE, USA | Market Cap: 7.725m USD | 12M Return: -12.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 20.1M
EPS Trend: 92.5%
Qual. Beats: -1
Rev. Trend: 94.4%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
New Oriental Education & Technology Group (NYSE: EDU) is a Chinese provider of private educational services, founded in 1993 and headquartered in Beijing. The company operates through four main segments: Educational Services and Test Preparation Courses; Private Label Products and Livestreaming E-Commerce; Overseas Study Consulting Services; and Educational Materials and Distribution.
Its core offerings include test preparation courses for language and university entrance exams used in the United States, Commonwealth countries, and China, alongside non-academic tutoring, intelligent learning systems and devices, and overseas study consulting. The company delivers its programs through schools, learning centers, bookstores, and online platforms, including its Koolearn.com online education service.
Listed on the NYSE since 2006, EDU is classified within the Consumer Discretionary sector under the Education Services sub-industry. Chinas private K-12 and tutoring sector has faced significant regulatory scrutiny in recent years, including restrictions on after-school tutoring that have reshaped how education providers operate. New Orientals diversification into livestreaming e-commerce and overseas study consulting reflects a strategic pivot in response to these evolving market conditions.
- East Buy livestream e-commerce revenue accelerates on strong GMV growth
- Non-academic tutoring demand recovers post Double Reduction policy
- Overseas study consulting rebounds as US applications surge
| Net Income: 420.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 3.46 > 1.0 |
| NWC/Revenue: 39.95% < 20% (prev 40.27%; Δ -0.31% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.10b > Net Income 420.6m |
| Net Debt (-4.15b) to EBITDA (656.3m): -6.33 < 3 |
| Current Ratio: 1.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (159.6m) vs 12m ago -1.75% < -2% |
| Gross Margin: 54.96% > 18% (prev 55.03%; Δ -0.07% > 0.5%) |
| Asset Turnover: 68.54% > 50% (prev 64.37%; Δ 4.17% > 0%) |
| Interest Coverage Ratio: 1.77k > 6 (EBIT TTM 549.5m / Interest Expense TTM 311k) |
| A: 0.26 (Total Current Assets 5.43b - Total Current Liabilities 3.28b) / Total Assets 8.24b |
| B: 0.21 (Retained Earnings 1.77b / Total Assets 8.24b) |
| C: 0.07 (EBIT TTM 549.5m / Avg Total Assets 7.85b) |
| D: 1.07 (Book Value of Equity 4.09b / Total Liabilities 3.83b) |
| Altman-Z'' = 4.00 = AA |
| DSRI: 0.97 (Receivables 42.6m/39.3m, Revenue 5.38b/4.79b) |
| GMI: 1.00 (GM 55.03% / 54.96%) |
| AQI: 0.95 (AQ_t 0.14 / AQ_t-1 0.15) |
| SGI: 1.12 (Revenue 5.38b / 4.79b) |
| TATA: -0.08 (NI 420.6m - CFO 1.10b) / TA 8.24b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of July 01, 2026, the stock is trading at USD 45.91 with a total of 265,129 shares traded. Over the past week, the price has changed by +1.93%, over one month by -2.49%, over three months by -17.98% and over the past year by -12.91%.
Current recommended Stop Loss: 44.00 (which is 4.2% or 1.4 ATR below the current price).
New Oriental Education has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy EDU.
- StrongBuy: 12
- Buy: 4
- Hold: 6
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 70.6 | 53.8% |
P/E Trailing = 17.163
P/E Forward = 11.2994
P/S = 1.4373
P/B = 1.8048
P/EG = 0.7959
Revenue TTM = 5.38b USD
EBIT TTM = 549.5m USD
EBITDA TTM = 656.3m USD
Long Term Debt = 14.4m USD (from longTermDebt, last fiscal year)
Short Term Debt = 273.3m USD (from shortTermDebt, last quarter)
Debt = 806.9m USD (from shortLongTermDebtTotal, last quarter) (leases 807.0m already included)
Net Debt = -4.15b USD (calculated: Debt 806.9m - CCE 4.96b)
Enterprise Value = 3.57b USD (7.73b + Debt 806.9m - CCE 4.96b)
Interest Coverage Ratio = 1.77k (Ebit TTM 549.5m / Interest Expense TTM 311k)
EV/FCF = 4.19x (Enterprise Value 3.57b / FCF TTM 852.0m)
FCF Yield = 23.85% (FCF TTM 852.0m / Enterprise Value 3.57b)
FCF Margin = 15.84% (FCF TTM 852.0m / Revenue TTM 5.38b)
Net Margin = 7.82% (Net Income TTM 420.6m / Revenue TTM 5.38b)
Gross Margin = 54.96% ((Revenue TTM 5.38b - Cost of Revenue TTM 2.42b) / Revenue TTM)
Gross Margin QoQ = 53.70% (prev 53.26%)
Tobins Q-Ratio = 0.43 (Enterprise Value 3.57b / Total Assets 8.24b)
Interest Expense / Debt = 0.04% (Interest Expense 311k / Debt 806.9m)
Taxrate = 27.46% (172.5m / 628.1m)
NOPAT = 398.6m (EBIT 549.5m * (1 - 27.46%))
Current Ratio = 1.66 (Total Current Assets 5.43b / Total Current Liabilities 3.28b)
Debt / Equity = 0.20 (Debt 806.9m / totalStockholderEquity, last quarter 4.09b)
Debt / EBITDA = -6.33 (Net Debt -4.15b / EBITDA 656.3m)
Debt / FCF = -4.87 (Net Debt -4.15b / FCF TTM 852.0m)
Total Stockholder Equity = 3.90b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.36% (Net Income 420.6m / Total Assets 8.24b)
RoE = 10.79% (Net Income TTM 420.6m / Total Stockholder Equity 3.90b)
RoCE = 14.05% (EBIT 549.5m / Capital Employed (Equity 3.90b + L.T.Debt 14.4m))
RoIC = 8.02% (NOPAT 398.6m / Invested Capital 4.97b)
WACC = 5.96% (E(7.73b)/V(8.53b) * Re(6.58%) + D(806.9m)/V(8.53b) * Rd(0.04%) * (1-Tc(0.27)))
Discount Rate = 6.58% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -71.91 | Cagr: -1.98%
[DCF] Terminal Value 77.97% ; FCFF base≈715.9m ; Y1≈820.7m ; Y5≈1.21b
[DCF] Fair Price = 140.3 (EV 18.2b - Net Debt -4.15b = Equity 22.3b / Shares 159.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 92.53 | EPS CAGR: 26.80% | SUE: -0.89 | # QB: -1
Revenue Correlation: 94.40 | Revenue CAGR: 21.48% | SUE: 1.28 | # QB: 1
EPS current Quarter (2026-08-31): EPS=1.74 | Chg30d=+0.00% | Revisions=-20% | Analysts=1