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New Oriental Education & Technology Group Inc. (EDU) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

New Oriental Education & Technology Group Inc.

EDUMarket cap $8.85BPrice $57.1

Country🇨🇳China

SectorConsumer

IndustryConsumer Services

Runs education and tutoring services across China, from test prep to overseas study consulting. Survived Beijing's brutal 2021 crackdown on private tutoring by pivoting into livestreaming e-commerce, turning regulatory disaster into an unexpected growth story.

In Bastion Portfolios?

52W Return+3%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+24%9

Revenue Forecast

Rev CAGR (1y)+18%8

Rev CAGR (3y)+13%8

Rev CAGR (5y)+9%7

Earnings Forecast

EPS Growth Y+1+49%9

EPS Growth Y+2+14%7

EPS Growth Y+3+10%6

Quality

Margins

EBIT Margin11%5

Net Income Margin8%5

Free Cash Flow Margin14%7

Debt

Net Debt/EBITDA-3.510

Efficiency

ROE12%6

ROA6%7

Earnings Stability77

GEAR+VERY STRONG98

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)156

P/E Ratio (Forward 3y)108

P/BV2.26

EV Multiples

EV/EBITDA Fwd410

EV/EBIT Fwd410

Yield

Free Cash Flow Yield8.8%9

Dividend Yieldna–

Momentum

Short term

1 month return-4%5

3 month return+19%10

YTD return+5%5

Mid term

Price vs 52wHigh89%8

1 year return+13%6

Long term

3 year return-3%3

5 year return+170%8

Risk Shield

Price Risk

Beta0.67

Volatility37%5

Free Cash Flow

Free Cash Flow Margin14%7

Free Cash Flow Yield8.8%9

Quality

ROCE14%7

Earnings Stability77

Net Debt/EBITDA-3.510

02Growth

Is it actually growing, and how fast?

EDUNew Oriental Education & Technology Group

Revenue FY26$5.7B

GROWTH RATING↗

STRONG78 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+24%9

Revenue, next 1Y+18%8

Revenue, next 3Y, CAGR+13%8

Revenue, next 5Y, CAGR+9%7

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+49%9

EPS growth, FY28E+14%7

EPS growth, FY29E+10%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 78% of companies worldwide.

Revenue grew 24%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 13%/yr over the next 3 years, ahead of most of the market.8/10

The runway holds up: revenue is set to grow 9%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 14%/yr vs revenue 13%/yr).

WATCH

Revenue grew 24%/yr over the last 3 years; forecasts see it cooling to 13%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

EDUNew Oriental Education & Technology Group

Total return Current−20.3%

Price return Current−20.3%

MOMENTUM RATING↗

STRONG72 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%5

3-month return+19%10

YTD return+5%5

MID & LONG-TERM▾SCORE

% of 52-week high89%8

1-year return+13%6

3-year return-3%3

5-year return+170%8

MOMENTUM ASSESSMENT

STRENGTHS

It's up 13% over the past year, but 11% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+19%).

WATCH

Average long-term results. Multi-year returns are middling (-2.7% over three years and +170% over five), roughly average for the market.

Returns sit at the market level over the past month (-4%) and so far this year (+5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on New Oriental Education & Technology Group Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

EDUNew Oriental Education & Technology Group

Revenue FY26$5.7B

GROWTH RATING↗

STRONG78 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+24%9

Revenue, next 1Y+18%8

Revenue, next 3Y, CAGR+13%8

Revenue, next 5Y, CAGR+9%7

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+49%9

EPS growth, FY28E+14%7

EPS growth, FY29E+10%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 78% of companies worldwide.

Revenue grew 24%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 13%/yr over the next 3 years, ahead of most of the market.8/10

The runway holds up: revenue is set to grow 9%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 14%/yr vs revenue 13%/yr).

WATCH

Revenue grew 24%/yr over the last 3 years; forecasts see it cooling to 13%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

EDUNew Oriental Education & Technology Group

Total return Current−20.3%

Price return Current−20.3%

MOMENTUM RATING↗

STRONG72 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%5

3-month return+19%10

YTD return+5%5

MID & LONG-TERM▾SCORE

% of 52-week high89%8

1-year return+13%6

3-year return-3%3

5-year return+170%8

MOMENTUM ASSESSMENT

STRENGTHS

It's up 13% over the past year, but 11% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+19%).

WATCH

Average long-term results. Multi-year returns are middling (-2.7% over three years and +170% over five), roughly average for the market.

Returns sit at the market level over the past month (-4%) and so far this year (+5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on New Oriental Education & Technology Group Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community