New Oriental Education & Technology Group Inc ADR
EDU: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $19.00 | Cbxk | Lrwdkrzr |
New Oriental's Capacity Expansion Accelerates
/s3.amazonaws.com/arc-authors/morningstar/d89f461f-2894-44ca-8128-63cac16b4798.jpg)
Business Strategy and Outlook
After terminating its K-9 academic tutoring in 2021, New Oriental identified a few new business initiatives, such as nonacademic tutoring and intelligent learning systems and devices. We are positive on these initiatives given New Oriental’s expertise in after-school tutoring and curriculum development. The new businesses accounted for only about 17% of revenue in fiscal 2023 but growth is robust. We project a 27% revenue contribution by fiscal 2028.