(EDU) New Oriental Education - Overview
Sector: Consumer Defensive | Industry: Education & Training Services | Exchange: NYSE (USA) | Market Cap: 7.837m USD | Total Return: 2.7% in 12m
Avg Turnover: 33.0M
EPS Trend: 92.5%
Qual. Beats: -1
Rev. Trend: 94.4%
Qual. Beats: 1
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
New Oriental Education & Technology Group (EDU) is a diversified provider of private educational services in China. The company operates across four primary segments: test preparation, overseas study consulting, educational materials distribution, and a growing e-commerce division centered on private label products and livestreaming.
Following regulatory shifts in China’s private tutoring sector, the company pivoted its business model to include non-academic tutoring and intelligent learning systems. This transition reflects a broader industry trend where traditional K-12 academic providers have integrated digital hardware and livestreaming retail to diversify revenue streams. The company maintains an extensive physical footprint through a network of schools, learning centers, and bookstores, complemented by its digital platform, Koolearn.com.
For a detailed analysis of the companys valuation and growth metrics, consider reviewing the latest data on ValueRay. Founded in 1993 and headquartered in Beijing, the firm remains a significant player in China’s Education Services sub-industry, facilitating student placement in domestic and international institutions.
- Growth in non-academic tutoring services offsets legacy K-12 academic coaching losses
- Livestreaming e-commerce subsidiary East Buy drives significant high-margin revenue diversification
- Rising demand for overseas study consulting fuels post-pandemic service sector recovery
- Ongoing Chinese regulatory oversight of private education impacts long-term valuation multiples
- Expansion of intelligent learning systems increases digital product penetration and margins
| 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 0.55%; Δ 5.44k% > 0.5%) |
| Asset Turnover: 68.54% > 50% (prev 64.37%; Δ 4.17% > 0%) |
| Interest Coverage Ratio: 1.77k > 6 (EBITDA TTM 656.3m / 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: 0.57 (Book Value of Equity 2.19b / Total Liabilities 3.83b) |
| Altman-Z'' = 3.48 = A |
| DSRI: 0.97 (Receivables 42.6m/39.3m, Revenue 5.38b/4.79b) |
| GMI: 1.00 (GM 54.96% / 55.03%) |
| 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 = -3.08 (Cap -4..+1) = AA |
As of June 01, 2026, the stock is trading at USD 45.79 with a total of 552,951 shares traded.
Over the past week, the price has changed by -3.72%,
over one month by -15.29%,
over three months by -15.22% and
over the past year by +2.67%.
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 | 70.8 | 54.6% |
P/E Trailing = 17.4111
P/E Forward = 11.4679
P/S = 1.4581
P/B = 1.8309
P/EG = 0.8075
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 = 3.68b USD (7.84b + Debt 806.9m - CCE 4.96b)
Interest Coverage Ratio = 1.77k (Ebit TTM 549.5m / Interest Expense TTM 311k)
EV/FCF = 4.32x (Enterprise Value 3.68b / FCF TTM 852.0m)
FCF Yield = 23.12% (FCF TTM 852.0m / Enterprise Value 3.68b)
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 = 0.45 (Enterprise Value 3.68b / Total Assets 8.24b)
Interest Expense / Debt = 0.04% (Interest Expense 311k / Debt 806.9m)
Taxrate = 28.12% (54.7m / 194.6m)
NOPAT = 395.0m (EBIT 549.5m * (1 - 28.12%))
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 = 7.59% (NOPAT 395.0m / Invested Capital 5.21b)
WACC = 5.90% (E(7.84b)/V(8.64b) * Re(6.51%) + D(806.9m)/V(8.64b) * Rd(0.04%) * (1-Tc(0.28)))
Discount Rate = 6.51% (= 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 next Quarter (2026-08-31): EPS=1.74 | Chg30d=-2.51% | Revisions=-20% | Analysts=1