New Oriental Stock Today

EDU
 Stock
  

USD 25.02  0.66  2.57%   

Market Performance
18 of 100
Odds Of Distress
Less than 3
New Oriental is selling for under 25.02 as of the 11th of August 2022; that is -2.57 percent decrease since the beginning of the trading day. The stock's last reported lowest price was 24.88. New Oriental has a very small chance of experiencing financial distress in the next few years and had a solid performance during the last 90 days. Equity ratings for New Oriental Education are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 21st of August 2020 and ending today, the 11th of August 2022. Click here to learn more.
CUSIP
647581107
Fiscal Year End
May
Business Domain
Consumer Services
IPO Date
7th of September 2006
Category
Consumer Defensive
Classification
Consumer Discretionary
ISIN
US6475812060
New Oriental Education Technology Group Inc. provides private educational services under the New Oriental brand in the Peoples Republic of China. The company was founded in 1993 and is headquartered in Beijing, the Peoples Republic of China. New Oriental operates under Education Training Services classification in the United States and is traded on New York Stock Exchange.. The company has 1.7 B outstanding shares of which 11.14 M shares are currently shorted by investors with about 1.64 days to cover. More on New Oriental Education

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New Oriental Stock Highlights

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. If you consider yourself one of those investors, make sure you clearly understand your entering position. New Oriental's investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding New Oriental or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.
New Oriental is way too risky over 90 days horizon
New Oriental appears to be risky and price may revert if volatility continues
The company reported the last year's revenue of 3.11 B. Reported Net Loss for the year was (1.19 B) with profit before taxes, overhead, and interest of 1.35 B.
New Oriental Education has about 4.19 B in cash with (1.28 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 24.7.
New Oriental has a poor financial position based on the latest SEC disclosures
Roughly 65.0% of the company shares are held by institutions such as insurance companies
Latest headline from supchina.com: Chinas radically transformed tutoring market, one year after crackdown - SupChina
ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary, New Oriental's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to New Oriental's managers, analysts, and investors.
Environment Score
Governance Score
Social Score
CEOChenggang Zhou
Thematic IdeaMomentum (view all)
Fama & French Classification
Average Analyst Recommendation
Analysts covering New Oriental report their recommendations after researching New Oriental's financial statements, talking to executives and customers, or listening in on New Oriental's conference calls. The current trade recommendation is based on an ongoing consensus estimate among financial analysts covering New Oriental Education. The New Oriental consensus assessment is calculated by taking the average forecast from all of the analysts covering New Oriental.
Piotroski F Score
Piotroski F-Score is a popular financial indicator that puts together nine criteria to evaluate the financial strength of New Oriental Education based on its profitability, leverage, liquidity, source of funds, and operating efficiency. It is an academic score (developed by Joseph Piotroski in 2002) to determine the current strength of New Oriental Education financial position. Scores of 8 and 9 are usually classified as strong value stocks, whereas scores of 2 or below are considered weak value stocks.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares1.8 B1.7 B
Notably Up
Increasing
Slightly volatile
Weighted Average Shares Diluted1.9 B1.9 B
Fairly Up
Increasing
Slightly volatile
Net Cash Flow from OperationsB1.3 B
Significantly Down
Increasing
Slightly volatile
Total Assets5.4 BB
Moderately Down
Increasing
Slightly volatile
Total Liabilities2.2 B2.2 B
Fairly Down
Increasing
Slightly volatile
Current Assets3.9 B4.5 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities1.7 B1.7 B
Fairly Up
Increasing
Slightly volatile
Total DebtB680.4 M
Way Up
Increasing
Slightly volatile
Return on Average Assets(0.15)(0.147)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.470.435
Significantly Up
Decreasing
Slightly volatile
Asset Turnover0.480.384
Fairly Up
Decreasing
Slightly volatile
Macroaxis Advice
Unlike general analyst consensus, Macroaxis buy hold or sell recommendation is provided in the context of your current investment horizon and risk tolerance. The advice algorithm takes into account all of New Oriental's available fundamental, technical, and predictive indicators. Your current horizon is 90 days - details
Strong HoldOvervalued
Financial Strength
New Oriental's financial strength is of vital concern to both outside investors and internal stakeholders. Efficiency and cost control are keys to New Oriental's success, along with its ability to generate sufficient cash flow to pay bills, repay debt, and make a consistent year-to-year profit.
Financial leverage usually refers to the use of borrowed funds to amplify returns from an investment. In general, analyzing the relationship between debt to total assets helps investors to understand New Oriental's financial leverage. It provides some insight into what part of New Oriental's total assets is financed by creditors.
Share Download
Share Download
By using current balance sheet information, investors can analyze the liability, assets, and equity on New Oriental's books and decide whether to invest or hold. Statistics such as return on equity (ROE), debt to equity (D/E) help investors determine how New Oriental deploys its capital and how much of that capital is borrowed.
Liquidity
New Oriental cash flow analysis is essential to understand how it generates and spends money over a specific period. It can also help you figure out where your money is going and how much cash you have available at a given moment. The company has 680.41 M in debt with debt to equity (D/E) ratio of 0.18, which may show that the company is not taking advantage of profits from borrowing. New Oriental Education has a current ratio of 2.57, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist New Oriental until it has trouble settling it off, either with new capital or with free cash flow. So, New Oriental's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like New Oriental Education sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for New Oriental to invest in growth at high rates of return. When we think about New Oriental's use of debt, we should always consider it together with cash and equity.

Operating Cash Flow

1.03 Billion
New Oriental Education (EDU) is traded on New York Stock Exchange in USA. It is located in No. 6 Hai Dian Zhong Street and employs 88,126 people. New Oriental is listed under Personal Services category by Fama And French industry classification. The company currently falls under 'Large-Cap' category with total capitalization of 42.86 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate New Oriental's market, we take the total number of its shares issued and multiply it by New Oriental's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and these looking for more risk prefer small-cap and mid-cap equities. New Oriental Education runs under Consumer Defensive sector within Education & Training Services industry. The entity has 1.7 B outstanding shares of which 11.14 M shares are currently shorted by investors with about 1.64 days to cover. New Oriental Education has about 4.19 B in cash with (1.28 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 24.7.
Check New Oriental Probability Of Bankruptcy
Ownership
New Oriental Education maintains a total of one billion seven hundred million outstanding shares. Over half of New Oriental Education outstanding shares are owned by institutional investors. These institutional investors are typically referred to corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in New Oriental Education. Please watch out for any change in the institutional holdings of New Oriental Education as this could mean something significant has changed or about to change at the company. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Ownership Allocation (%)

Check New Oriental Ownership Details

New Oriental Stock Price Odds Analysis

What are New Oriental's target price odds to finish over the current price? Attributed to a normal probability distribution, the odds of New Oriental jumping above the current price in 90 days from now is about 14.07%. The New Oriental Education probability density function shows the probability of New Oriental stock to fall within a particular range of prices over 90 days. Considering the 90-day investment horizon New Oriental has a beta of 0.8506 suggesting New Oriental Education market returns are related to returns on the market. As the market goes up or down, New Oriental is expected to follow. Moreover, the company has an alpha of 1.3521, implying that it can generate a 1.35 percent excess return over DOW after adjusting for the inherited market risk (beta).
  Odds Below 25.02HorizonTargetOdds Above 25.02
85.88%90 days
 25.02 
14.07%
Based on a normal probability distribution, the odds of New Oriental to move above the current price in 90 days from now is about 14.07 (This New Oriental Education probability density function shows the probability of New Oriental Stock to fall within a particular range of prices over 90 days) .

New Oriental Stock Institutional Holders

Institutional Holdings refers to the ownership stake in New Oriental that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of New Oriental's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing New Oriental's value.
InstituionSecurity TypeTotal SharesValue
Shah Capital ManagementCommon SharesM61.1 M
Polunin Capital Partners LtdCommon Shares2.6 M53.8 M
Ubs Group AgPut Options500 K10.2 M
Ubs Group AgCall Options315.2 K6.4 M
View New Oriental Diagnostics

New Oriental Historical Income Statement

New Oriental Education Income Statement is one of the three primary financial statements used for reporting New Oriental's overall financial performance over a current year or for a given accounting period. An Income Statement sometimes referred to as the statement of New Oriental Education revenue and expense. New Oriental Income Statement primarily focuses on the company's revenues and expenses during a particular period.
New Oriental Gross Profit is comparatively stable at the moment as compared to the past year. New Oriental reported Gross Profit of 1.35 Billion in 2021. Weighted Average Shares is likely to gain to about 1.8 B in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop (1.1 B) in 2022. View More Fundamentals

New Oriental Stock Against Markets

Picking the right benchmark for New Oriental stock is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in New Oriental stock price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for New Oriental is critical whether you are bullish or bearish towards New Oriental Education at a given time.

Be your own money manager

Our tools can tell you how much better you can do entering a position in New Oriental without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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New Oriental Corporate Directors

New Oriental corporate directors refer to members of a New Oriental board of directors. The board of directors generally takes responsibility for the New Oriental's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of New Oriental's board members must vote for the resolution. The New Oriental board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Yanhong Li - Independent DirectorProfile
Sisi Zhao - Investor Relations DirectorProfile
John Yang - Independent DirectorProfile
Ting Lee - Independent DirectorProfile

Invested in New Oriental Education?

You need to understand the risk of investing before taking a position in New Oriental. The danger of trading New Oriental Education is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of New Oriental is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than New Oriental. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile New Oriental Education is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Continue to Investing Opportunities. Note that the New Oriental Education information on this page should be used as a complementary analysis to other New Oriental's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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When running New Oriental Education price analysis, check to measure New Oriental's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy New Oriental is operating at the current time. Most of New Oriental's value examination focuses on studying past and present price action to predict the probability of New Oriental's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move New Oriental's price. Additionally, you may evaluate how the addition of New Oriental to your portfolios can decrease your overall portfolio volatility.
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Is New Oriental's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of New Oriental. If investors know New Oriental will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about New Oriental listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.031
Market Capitalization
4.7 B
Quarterly Revenue Growth YOY
-0.57
Return On Assets
-0.0759
Return On Equity
-0.28
The market value of New Oriental Education is measured differently than its book value, which is the value of New Oriental that is recorded on the company's balance sheet. Investors also form their own opinion of New Oriental's value that differs from its market value or its book value, called intrinsic value, which is New Oriental's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because New Oriental's market value can be influenced by many factors that don't directly affect New Oriental's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between New Oriental's value and its price as these two are different measures arrived at by different means. Investors typically determine New Oriental value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Oriental's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.