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

• Market Cap: HK$67.24B
• Dividend Yield: 1.07%
• Average Volume (3M): 5.98M
• Price to Earnings (P/E): 46.9
• Beta (1Y): 0.87
• Revenue Growth: 7.07%
• EPS Growth: -2.52%
• Country: HK
• Employees: 67,935
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.35
• Shares Outstanding: 1,635,288,300
• 10 Day Avg. Volume: 6,522,014
• 30 Day Avg. Volume: 5,981,724
• 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: HK$55.16
• Price Target Upside: 31.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.73
• Revenue Forecast (FY): HK$42.68B

• Rating: 73 Outperform
• Price Target: HK$54.00 ▲(29.12% Upside)
• Action: Upgraded Date: 10/17/25
• Date: Action: Upgraded 10/17/25

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.

Positive Factors

Free cash flow strength

Sustained, high free cash flow growth and a FCF-to-net-income ratio of 1.0 indicate the company generates cash reliably from operations. This durable cash generation supports reinvestment in digital channels, product development, and strategic initiatives without eroding liquidity.

Conservative leverage and improving ROE

A low debt-to-equity ratio provides financial flexibility and resilience during demand cycles, while an improving ROE (10.2%) shows the company is using equity capital more efficiently. Together these support long-term investment capacity and lower financing risk.

High gross margin and steady revenue growth

A 55%+ gross margin reflects strong pricing power and scalable delivery (online/adult services and content). Coupled with consistent revenue growth, this indicates a durable business model with scope to maintain profitability as the company shifts to higher-margin non-compulsory offerings.

Negative Factors

Rising debt trend

Although leverage remains low, a noted uptick in total debt could constrain future strategic flexibility if it continues. Over several quarters rising debt can increase interest expense and limit capacity for opportunistic investments or absorptive shocks to enrollment patterns.

Compression in operating margins

Declining EBIT/EBITDA margins signal emerging operational pressures—higher costs, investment spending, or mix shifts—that could persist. If margin compression continues, it may erode operating leverage and reduce cash available for growth or reinvestment over multiple quarters.

Structural regulatory-driven business shift

Regulatory removal of K-12 tutoring as a core revenue source forces a structural pivot to adult, overseas, test-prep, and commerce businesses. This reduces the company’s historical addressable market, raising execution risk and potentially slowing secular growth while new segments scale.

New Oriental Education & Technology Group 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 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 demonstrates a solid financial performance with strong revenue growth, improving profitability, and a healthy cash flow position. The balance sheet is stable with low leverage, although the slight increase in debt should be monitored.

Income Statement

The company has shown consistent revenue growth over the past years, with a notable increase in gross profit margin to 55.4% in the latest year. Net profit margin has improved to 7.6%, indicating enhanced profitability. However, EBIT and EBITDA margins have slightly decreased, suggesting some operational challenges. Overall, the income statement reflects a positive growth trajectory with improving profitability.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.22, indicating prudent financial leverage. Return on equity has improved to 10.2%, showcasing effective use of equity to generate profits. The equity ratio remains stable, reflecting a solid capital structure. However, the slight increase in total debt warrants monitoring.

Cash Flow

The cash flow statement is robust, with a significant free cash flow growth rate of 27.2%. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 1.0 suggests strong cash flow management. Overall, the cash flow position is strong and supports the company's growth initiatives.

Breakdown	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	4.90B	4.31B	3.00B	3.11B	4.28B
Gross Profit	2.72B	2.26B	1.59B	1.35B	2.24B
EBITDA	595.37M	600.96M	312.75M	-834.02M	383.73M
Net Income	371.72M	309.59M	177.34M	-1.19B	334.41M
Balance Sheet
Total Assets	7.81B	7.53B	6.39B	6.03B	10.15B
Cash, Cash Equivalents and Short-Term Investments	4.58B	4.78B	4.00B	4.19B	6.26B
Total Debt	803.78M	662.33M	458.60M	680.41M	2.16B
Total Liabilities	3.85B	3.48B	2.58B	2.24B	5.13B
Stockholders Equity	3.66B	3.78B	3.60B	3.71B	4.91B
Cash Flow
Free Cash Flow	896.59M	839.25M	827.96M	-1.43B	693.74M
Operating Cash Flow	896.59M	1.12B	971.01M	-1.28B	1.13B
Investing Cash Flow	-93.43M	-1.15B	-37.41M	1.17B	-2.18B
Financing Cash Flow	-584.97M	-160.44M	-246.87M	-230.86M	1.65B

New Oriental Education & Technology Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.82
• 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 HK:9901, the sentiment is Negative. The current price of 41.82 is below the 20-day moving average (MA) of 46.55, below the 50-day MA of 45.12, and above the 200-day MA of 40.90, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.45 is Positive, 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
9901	73 Outperform	HK$67.24B	46.85	9.39%	1.07%	7.07%	-2.52%
0667	67 Neutral	HK$13.17B	8.42	11.36%	3.15%	7.48%	87.88%
0839	65 Neutral	HK$7.73B	7.37	5.90%	9.49%	11.85%	100.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1797	62 Neutral	HK$24.77B	20.68	0.08%	―	-33.04%	-98.87%
3978	60 Neutral	HK$2.43B	6.13	44.08%	5.86%	174.65%	145.66%
2469	54 Neutral	HK$3.18B	5.59	13.58%	―	-10.99%	-50.16%

New Oriental Education & Technology Group Corporate Events

New Oriental Sets Board Meeting and Earnings Call for FY2026 Second Quarter Results

New Oriental Education & Technology Group Inc. has scheduled a board meeting for January 27, 2026 to review and approve its unaudited financial results for the six months ended November 30, 2025, with the results set to be published before the U.S. market opens on January 28, 2026. The company will host a FY2026 second-quarter earnings conference call and live webcast on the evening of January 28, 2026 Hong Kong time, where management will discuss the half-year results and take investor questions, underscoring its ongoing engagement with global shareholders through accessible dial-in, webcast, and replay channels.

The most recent analyst rating on (HK:9901) stock is a Hold with a HK$47.00 price target. To see the full list of analyst forecasts on New Oriental Education & Technology Group stock, see the HK:9901 Stock Forecast page.