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

• Market Cap: €74.73B
• Dividend Yield: N/A
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.81
• Revenue Growth: 13.12%
• EPS Growth: 20.82%
• Country: HK
• Employees: 67,935
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.48
• Shares Outstanding: 1,635,288,300
• 10 Day Avg. Volume: 5,725,646
• 30 Day Avg. Volume: 5,730,587
• PEG Ratio: <0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 0.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €44.50
• Price Target Upside: 2.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: HK$51.00 ▲(17.95% Upside)

The overall stock score of 73 reflects a strong financial performance and positive technical indicators, suggesting a well-positioned company in the education and training services industry. The valuation is reasonable, though the lack of dividend yield may deter some investors. The absence of earnings call and corporate events data did not impact the score.

New Oriental Education & Technology Group Business Overview & Revenue Model

Company Description

New Oriental Education & Technology Group (9901) is a leading provider of private educational services in China, offering a wide range of educational programs and services. The company operates through various segments, including language training, test preparation, K-12 tutoring, and online education. Its core products encompass English language courses, test preparation for standardized exams such as TOEFL and GRE, and various educational resources aimed at both domestic and international students.

How the Company Makes Money

New Oriental generates revenue primarily through tuition fees for its extensive array of educational programs. The company's key revenue streams include classroom-based courses, online courses, and educational materials sales. Additionally, New Oriental has developed partnerships with educational institutions and organizations, enhancing its service offerings and expanding its market reach. The rise of online education, particularly accelerated by the COVID-19 pandemic, has also contributed significantly to its earnings, allowing the company to tap into a larger audience beyond traditional classroom settings.

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	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	515.25M	595.37M	600.96M	312.75M	-834.02M	383.73M
Net Income	371.72M	371.72M	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	896.53M	896.59M	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 & Technology Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 43.24 is above the 20-day moving average (MA) of 41.38, above the 50-day MA of 39.39, and above the 200-day MA of 39.15, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 75.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	HK$8.54B	24.48	1.91%	10.74%	12.33%	-80.20%
9901	73 Outperform	€74.73B	24.59	10.30%	―	13.12%	20.82%
3978	64 Neutral	HK$3.98B	12.85	44.08%	4.54%	174.65%	145.66%
0667	64 Neutral	HK$14.47B	20.59	11.36%	3.18%	7.48%	87.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2469	59 Neutral	HK$6.29B	29.89	13.58%	―	-10.99%	-50.16%
1797	53 Neutral	HK$26.98B	8,260.00	0.08%	―	-33.04%	-98.87%

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.