New Oriental Education & Technology Group (9901) AI Stock Analysis

• Market Cap: HK$66.23B
• Dividend Yield: N/A
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.84
• Revenue Growth: 18.31%
• EPS Growth: 26.31%
• Country: HK
• Employees: 67,935
• Sector: Technology
• Sector Strength: 93
• Industry: Education & Training Services
• EPS (TTM): 0.54
• Shares Outstanding: 1,635,288,300
• 10 Day Avg. Volume: 5,181,300
• 30 Day Avg. Volume: 4,952,898
• PEG Ratio: -5.05
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.85
• Enterprise Value/Market Cap: 0.12
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 3.41
• 1Y Price Target: HK$49.01
• Price Target Upside: 24.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$49.00 ▲(24.05%Upside)

New Oriental Education & Technology Group receives a solid overall score driven by strong financial performance, particularly in revenue growth and profitability. The technical indicators suggest caution due to overbought conditions, while valuation appears fair. The absence of earnings call data and corporate events limits additional insights.

New Oriental Education & Technology Group Business Overview & Revenue Model

Company Description

New Oriental Education & Technology Group, Inc. (9901) is a leading provider of private educational services in China. The company operates in several key sectors, including K-12 after-school tutoring, test preparation, and educational content development. New Oriental offers a wide range of educational programs, services, and products that cater to students of all age groups, from primary school to post-graduate levels. With a focus on improving educational outcomes, the company has established itself as a trusted brand in the Chinese education market.

How the Company Makes Money

New Oriental Education & Technology Group, Inc. makes money through various revenue streams, primarily driven by its educational services. The company generates significant revenue from tuition fees for its after-school tutoring programs and test preparation courses. Additionally, New Oriental earns income from selling educational materials and books, which complement its course offerings. The company also benefits from its online education platform, which provides digital learning resources and courses. Strategic partnerships with educational institutions and content providers further bolster its revenue, allowing New Oriental to expand its reach and enhance its service offerings. The company's diversified approach, combining offline and online education services, enables it to maintain a strong financial performance.

New Oriental Education & Technology Group Financial Statement Overview

Summary

New Oriental Education & Technology Group shows strong financial health with solid revenue growth and profitability improvements. The balance sheet reflects stability, supported by low leverage and substantial equity. While cash flow generation remains strong, the recent decline in free cash flow growth warrants attention.

Income Statement

The company has demonstrated impressive growth in revenue, with a notable TTM revenue growth rate of 11.13% compared to the previous year. Gross profit margin is strong at 55.03% TTM, indicating efficient cost management. Net profit margin improvements from past losses are also commendable, with a TTM net profit margin of 8.17%. The EBIT and EBITDA margins are solid at 9.33% and 12.33%, respectively, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity position, as evidenced by an equity ratio of 49.50% TTM. The debt-to-equity ratio is low at 0.20, indicating conservative leverage use. The return on equity has improved significantly, reaching 10.62% TTM. The balance sheet shows stability with ample cash reserves, though total assets have slightly decreased.

Cash Flow

The company has generated positive free cash flow with a TTM growth rate of -16.01%, which is a slight decline from the previous period. The operating cash flow to net income ratio is robust at 2.23, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 1.80 reflects good cash conversion, although there's room for improvement.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.31B	3.00B	3.11B	4.28B	3.58B
Gross Profit	2.26B	1.59B	1.35B	2.24B	1.99B
EBITDA	600.96M	312.75M	-834.02M	383.73M	550.00M
Net Income	309.59M	177.34M	-1.19B	334.41M	413.33M
Balance Sheet
Total Assets	7.53B	6.39B	6.03B	10.15B	6.56B
Cash, Cash Equivalents and Short-Term Investments	4.78B	4.00B	4.19B	6.26B	3.52B
Total Debt	662.33M	458.60M	680.41M	2.16B	1.58B
Total Liabilities	3.48B	2.58B	2.24B	5.13B	3.69B
Stockholders Equity	3.78B	3.60B	3.71B	4.91B	2.74B
Cash Flow
Free Cash Flow	839.25M	827.96M	-1.43B	693.74M	494.91M
Operating Cash Flow	1.12B	971.01M	-1.28B	1.13B	804.46M
Investing Cash Flow	-1.15B	-37.41M	1.17B	-2.18B	-1.26B
Financing Cash Flow	-160.44M	-246.87M	-230.86M	1.65B	-17.86M

New Oriental Education & Technology Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9901, the sentiment is Negative. The current price of 39.5 is below the 20-day moving average (MA) of 40.63, above the 50-day MA of 38.60, and below the 200-day MA of 42.67, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 22.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9901.

New Oriental Education & Technology Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0839	75 Outperform	HK$8.23B	23.60	1.91%	10.82%	12.33%	-80.20%
0667	75 Outperform	HK$14.95B	26.62	9.04%	3.11%	1.50%	82.34%
9901	69 Neutral	HK$66.23B	21.35	10.21%	―	18.31%	26.31%
3978	69 Neutral	HK$4.16B	20.02	33.55%	2.25%	122.06%	129.31%
2469	67 Neutral	HK$6.52B	29.55	19.40%	―	-9.70%	23.51%
1797	66 Neutral	HK$14.52B	63.02	-2.35%	―	11.24%	-114.61%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%

New Oriental Education & Technology Group Corporate Events

New Oriental Reports Mixed Financial Results for Q3 FY2025

New Oriental Education & Technology Group Inc. announced its unaudited financial results for the third fiscal quarter ended February 28, 2025. The company reported a 2.0% decrease in total net revenues year over year, amounting to US$1,183.1 million. However, excluding revenues from East Buy private label products and livestreaming business, net revenues increased by 21.2% to US$1,038.3 million. Operating income rose by 9.8% to US$124.5 million, and net income attributable to New Oriental saw a slight increase of 0.1% to US$87.3 million. These results indicate a mixed financial performance, with growth in core educational services offset by declines in other areas.

New Oriental Education Schedules Q3 Financial Results Announcement

New Oriental Education & Technology Group Inc. has announced a board meeting scheduled for April 22, 2025, to approve and discuss the unaudited financial results for the quarter ending February 28, 2025. The results will be published before the U.S. market opens on April 23, 2025, followed by an earnings teleconference call where the company’s management will discuss the results and answer questions. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.