New Oriental Education Tech (EDU) AI Stock Analysis

• Market Cap: $8.29B
• Dividend Yield: 1.14%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.65
• Revenue Growth: 7.22%
• EPS Growth: -2.84%
• Country: US
• Employees: 67,935
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.61
• Shares Outstanding: 163,528,840
• 10 Day Avg. Volume: 1,002,574
• 30 Day Avg. Volume: 1,179,368
• PEG Ratio: 0.98
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 12.04
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: $67.44
• Price Target Upside: 32.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.3
• Revenue Forecast (FY): $5.38B

• Rating: 70 Outperform
• Price Target: $58.00 ▲(14.04% Upside)

New Oriental Education Tech's strong financial performance and stable growth trajectory are significant positives, supported by robust revenue growth and profitability margins. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The earnings call highlights a positive outlook but also points to challenges in overseas segments and increased operating costs.

Positive Factors

Revenue Growth

Projected revenue growth of 5% to 10% indicates a strong market position and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Robust cash flow growth enhances financial stability, enabling strategic investments and shareholder returns, crucial for sustained business health.

New Educational Initiatives

Successful new initiatives in non-academic tutoring and intelligent learning systems drive diversification and future revenue streams.

Negative Factors

Decreased Net Income

A decline in net income may indicate challenges in cost management or market conditions, potentially affecting profitability and investment capacity.

Increased Operating Costs

Rising operating costs could pressure margins, reducing financial flexibility and impacting long-term profitability if not managed effectively.

Challenges in Overseas Business

Difficulties in overseas segments may hinder growth potential and require strategic adjustments to maintain competitive positioning.

New Oriental Education Tech Business Overview & Revenue Model

Company Description

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. It operates through K-12 AST, Test Preparation and Other Courses; Online Education; and Others segments. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to enhance their exam scores, as well as for children to teach English. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary school in Yangzhou seeking a full curriculum with a focus on English; develops and edits educational materials for language training and test preparation; and offers online education programs that include college, K-12, and pre-school education. In addition, the company offers overseas studies consulting and overseas study tour services. As of May 31, 2021, it offered educational programs, services, and products to students through a network of 122 schools, 1,547 learning centers, and 11 bookstores, as well as through its online learning platforms. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

New Oriental generates revenue primarily through tuition fees for its educational programs and services. Key revenue streams include fees from language training courses, test preparation classes, and K-12 tutoring services. The company also earns money from the sale of educational materials and books. Additionally, New Oriental has developed online learning platforms that have expanded its reach and allowed for the monetization of digital content. Significant partnerships with educational institutions and technology companies have further enhanced its offerings and contributed to its revenue growth.

New Oriental Education Tech Financial Statement Overview

Summary

New Oriental Education Tech exhibits strong financial health with consistent revenue growth, robust profitability margins, and a solid balance sheet. The company's cash flow generation is impressive, supporting its operational and strategic initiatives. The low leverage and strong equity position mitigate financial risks, positioning the company well for future growth.

Income Statement

New Oriental Education Tech has demonstrated strong revenue growth, with a 2.22% increase in the latest year. The gross profit margin is robust at 55.45%, indicating efficient cost management. Net profit margin improved to 7.60%, reflecting enhanced profitability. The EBIT and EBITDA margins are healthy at 9.97% and 12.15%, respectively, showcasing operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a low debt-to-equity ratio of 0.22, indicating conservative leverage. Return on equity is satisfactory at 10.17%, suggesting effective use of equity. The equity ratio stands at 46.91%, highlighting a strong equity base relative to total assets.

Cash Flow

Cash flow performance is strong, with a 24.53% growth in free cash flow, indicating improved cash generation. The operating cash flow to net income ratio is 2.41, showing robust cash flow relative to earnings. The free cash flow to net income ratio is 0.71, reflecting efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.90B	4.90B	4.31B	3.00B	3.11B	4.28B
Gross Profit	2.72B	2.72B	2.26B	1.59B	1.35B	2.24B
EBITDA	595.37M	595.37M	457.25M	312.75M	-834.22M	551.90M
Net Income	371.74M	372.44M	309.59M	177.34M	-1.19B	334.41M
Balance Sheet
Total Assets	7.81B	7.81B	7.53B	6.39B	6.03B	10.15B
Cash, Cash Equivalents and Short-Term Investments	4.58B	4.58B	4.78B	4.00B	4.19B	6.26B
Total Debt	803.78M	803.78M	662.33M	458.60M	680.41M	2.16B
Total Liabilities	3.85B	3.85B	3.48B	2.58B	2.24B	5.13B
Stockholders Equity	3.66B	3.66B	3.78B	3.60B	3.71B	4.91B
Cash Flow
Free Cash Flow	703.33M	637.38M	839.25M	827.96M	-1.43B	693.74M
Operating Cash Flow	896.59M	896.59M	1.12B	971.01M	-1.28B	1.13B
Investing Cash Flow	-93.43M	-93.43M	-1.15B	-37.41M	1.17B	-2.18B
Financing Cash Flow	-584.97M	-584.97M	-160.44M	-246.87M	-230.86M	1.65B

New Oriental Education Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDU, the sentiment is Negative. The current price of 50.86 is below the 20-day moving average (MA) of 54.07, below the 50-day MA of 54.11, and above the 200-day MA of 49.49, indicating a neutral trend. The MACD of -1.18 indicates Positive momentum. The RSI at 37.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDU.

New Oriental Education Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRN	71 Outperform	$2.80B	9.85	23.04%	―	17.25%	30.15%
EDU	70 Outperform	$8.29B	22.26	9.28%	1.14%	7.22%	-2.84%
LOPE	68 Neutral	$4.38B	21.11	27.77%	―	7.05%	-2.63%
TAL	67 Neutral	$6.73B	37.90	4.77%	―	44.37%	146.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GOTU	49 Neutral	$584.58M	―	-21.21%	―	48.81%	61.64%
DAO	46 Neutral	$1.09B	55.18	―	―	-0.65%	153.79%

New Oriental Education Tech Corporate Events

New Oriental Schedules Board Meeting to Approve Q1 Results

New Oriental Education & Technology Group Inc. announced that its board of directors will hold a meeting on October 27, 2025, to approve and publish the unaudited financial results for the quarter ended August 31, 2025. The results will be released on October 28, 2025, before the U.S. market opens, and a teleconference will be held on the same day for management to discuss the results and address any questions from stakeholders.

New Oriental Education Announces Record Date for Annual General Meeting

On September 26, 2025, New Oriental Education & Technology Group Inc. announced the record date for its forthcoming annual general meeting of shareholders. The record date is set for October 16, 2025, and shareholders must ensure their share transfers are lodged by this date to be eligible to attend. This announcement is significant as it outlines the procedural steps for shareholder participation in the company’s governance, which can impact strategic decisions and stakeholder engagement.

New Oriental Education Releases FY2025 Annual Report

New Oriental Education & Technology Group Inc. has published its annual report for the fiscal year ending May 31, 2025, detailing its audited financial results. This report, released on September 25, 2025, is made available to shareholders in accordance with the Hong Kong Stock Exchange’s regulations. The publication of the annual report provides insights into the company’s financial performance and strategic positioning, which are crucial for stakeholders to assess the company’s future prospects and market standing.