New Oriental Education & Technology Group Inc.

$ 45.02 -1.60 %

New Oriental Education & Technology Group Inc. (EDU) operates as a prominent private education provider throughout the People's Republic of China, primarily recognized by its "New Oriental" brand. The company organizes its operations across key segments: K-12 After-School Tutoring (AST), Test Preparation and various other courses, and a dedicated Online Education division. Its services encompass extensive test preparation, assisting students with language and entrance examinations for educational institutions in the United States, China, and Commonwealth nations. It also delivers after-school academic support for middle and high school students aiming to boost their exam scores, along with English instruction for children. Furthermore, New Oriental conducts diverse language training programs, including English and other foreign languages such as German, Japanese, French, Korean, Italian, and Spanish. The group also oversees a full-time private primary and secondary school in Yangzhou, which follows a comprehensive curriculum with a strong emphasis on English. It actively develops and refines educational content for both language training and test preparation. Through its digital platforms, the company offers online educational programs spanning pre-school, K-12, and college levels. Additionally, it provides consulting services for overseas academic studies and organizes international study tours. As of May 31, 2021, New Oriental delivered its educational programs, services, and products through an expansive network consisting of 122 schools, 1,547 learning centers, and 11 bookstores, supplemented by its robust online learning infrastructure. The company, established in 1993, has its headquarters in Beijing, People's Republic of China.

CEO: Chenggang Zhou - https://www.neworiental.org

Price objectif

$65 44.38 %

Recommandation

Buy

DCF

$ -58.09

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EDU vs S&P500

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Quick ratio

1.63

suggests a healthy liquidity position, showing that the company can likely meet its short-term obligations.

P/E ratio

16.67

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

2.70

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

10.79 %

reflects reasonable profitability, showing good use of equity.

ROIC

7.61 %

generates a return higher than the cost of its capital, thereby creating value for its investors.

WACC

5.00

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.20

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

3.07

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

23.35 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
7 indicates good financial health
Altman score
2.36 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.59 indicates that the company has a moderate ability to cover its short-term debts with its cash
Debt Ratio
0.10 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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