New Oriental Education & Technology Group Inc ADR EDU

Morningstar Rating

Company Report

New Oriental Sees Growth From K-12 Tutoring Despite Overseas Study Challenges

Four years following the regulatory crackdown on academic tutoring, New Oriental Education & Technology has reshaped its business, achieving record-high revenue in fiscal 2025. Besides the established businesses such as overseas test preparation, overseas study consulting, and high school tutoring, New Oriental has made significant strides in new business areas including nonacademic tutoring, intelligent learning systems and devices, and livestreaming e-commerce. We estimate these new initiatives contributed over 40% of revenue in fiscal 2025.

Price vs Fair Value

EDU is trading at a LOCK|ByRkr@@ premium.
Price
$49.15
Fair Value
S?@
Uncertainty
LOCK|W^ s!r@t
1-Star Price
LOCK|B.VZ
5-Star Price
LOCK|.$P
Economic Moat
LOCK|S&^
Capital Allocation
LOCK|?@$$q#

Bulls Say, Bears Say

Bulls

Solid cost control will drive operating margin expansion, despite a deceleration in growth.

Bears

Growth in New Oriental's K-12 education services could decelerate more sharply than anticipated as competition intensifies.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Shares Outstanding
159.15M
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
14.06
Price/Sales
1.47
Dividend Yield (Trailing)
2.44%
Dividend Yield (Forward)
2.44%
Total Yield
7.96%

Company Profile

New Oriental Education & Technology is a prominent private education provider in China, offering a wide array of educational services. These include overseas test preparation and consulting services, high school academic tutoring, nonacademic tutoring, and intelligent learning systems and devices. Additionally, the company holds a 57% ownership stake in East Buy, a leading player in the livestreaming e-commerce market.
Sector
Consumer Defensive
Industry
Education & Training Services
Stock Style Box
Large Value
Total Number of Employees
84,111

Competitors

Valuation

Metric
EDU
TAL
00667
Price/Earnings (Normalized)
14.0610.4411.00
Price/Book Value
1.921.511.40
Price/Sales
1.471.981.88
Price/Cash Flow
8.7317.676.62
Price/Earnings
EDU
TAL
00667

Financial Strength

Metric
EDU
TAL
00667
Quick Ratio
1.481.881.47
Current Ratio
1.662.171.55
Interest Coverage
9.47
Quick Ratio
EDU
TAL
00667

Profitability

Metric
EDU
TAL
00667
Return on Assets (Normalized)
7.30%10.06%8.05%
Return on Equity (Normalized)
15.08%15.90%14.01%
Return on Invested Capital (Normalized)
11.76%13.22%11.38%
Return on Assets
EDU
TAL
00667

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LOCK|@<&$8B
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