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Fundamentals snapshot

New Oriental Education & Technology Group Inc.

EDU · NYQ · Consumer Defensive · Education & Training Services

Current price

$59.13

52-week range

$44.25 - $64.97

Market cap

$9.17B

One-glance verdict

Undervalued

$179.95 our estimate vs market $59.13

Wall Street consensus: $73.62 (-59.1% lower than our fair-value estimate)

Balance sheet

Healthy

22,973.25x Strong cushion

Net cash $4.26B. Interest coverage shows how many times profit covers the interest bill.

What this company does

New Oriental Education & Technology Group Inc.

New Oriental Education & Technology Group Inc. offers a wide range of educational services in China, from test preparation courses to online learning and even selling products through livestreaming. The money they make comes from these various services and sales, and it matters because it shows how well they are doing at attracting students and customers in the competitive education market.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Free cash flow by quarter (oldest to newest)
FY2025 Q4 $654.65M FY2026 Q4 $780.21M
Revenue $5.66B
Net income $475.17M
Diluted EPS —
Operating cash flow $1.03B
Free cash flow $780.21M
Revenue $4.90B
Net income $371.72M
Diluted EPS —
Operating cash flow $896.59M
Free cash flow $654.65M

Is it cheap or expensive?

Fair value $179.95 vs current price $59.13

Wall Street consensus is the average analyst price target: $73.62 (-59.1% lower than our fair-value estimate).

Our most-likely fair value is $179.95 a share — about 204.3% above today's price of $59.13, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 8.0% · Discount 7.2% · Terminal 2.5%

$179.95

Bear

Growth 4.0% · Discount 7.2% · Terminal 2.5%

$148.01

Bull

Growth 15.0% · Discount 7.2% · Terminal 2.5%

$255.19

Is it drowning in debt?

Healthy

Net cash $4.3B - more cash than debt. Interest coverage 22973.2x.

Net debt $-4.26B
Interest coverage 22,973.25x

New Oriental Education & Technology Group Inc.'s profit covers its interest bill about 22973.2 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.

Healthy
Worse cushion Baseline Better cushion
EDU BASELINE New Oriental Education & Technology Group Inc.

Total debt $848.84M Interest coverage 22,973.25x This is the baseline the peer rows are being compared against.

22,973.25x
BILI Bilibili Inc.

Total debt $1.43B Interest coverage 7.47x -100% vs EDU Carries about 3076.3x less debt cushion than EDU.

7.47x -100% vs EDU
DAO Youdao, Inc.

Total debt $256.95M Interest coverage 3.62x -100% vs EDU Carries about 6350.2x less debt cushion than EDU.

3.62x -100% vs EDU
GOTU Gaotu Techedu Inc.

Total debt $168.68M Interest coverage -12.60x -100% vs EDU This peer has almost no interest-payment cushion compared with EDU.

-12.60x -100% vs EDU
LRN Stride, Inc.

Total debt $619.04M Interest coverage 38.27x -100% vs EDU Carries about 600.3x less debt cushion than EDU.

38.27x -100% vs EDU

What you should know

The case for and against EDU

3 Rewards 2 Risks

Rewards

  • Revenue grew 15.5% last year.
  • Returns 12.5% on equity, ahead of 40% of its peers.
  • Free cash flow was positive in 9/10 years.

Risks

  • Insider ownership is only 2.3% (peer median: 3.8%).
  • Operating margin compressed from 6.3% to 5.6% over 3 years.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
19.71x
Forward P/E
11.83x
P/B
2.30x
P/S
1.62x
EV/EBITDA
6.45x
PEG ratio
1.03x

Profitability

How much profit each dollar creates

Gross margin
54.6%
Operating margin
5.6%
Net margin
8.4%
ROE
12.5%
ROA
4.8%

Health

Liquidity and balance-sheet strength

Debt / equity
0.20x
Current ratio
1.50x
Quick ratio
1.38x
Total debt
$848.84M
Total cash
$5.11B

Growth

How the business has been compounding

Revenue TTM
$17.87B
Revenue 5Y CAGR
16.2%
EPS TTM
3.00
EPS 5Y CAGR
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Cash flow

How much cash the business throws off

Operating CF TTM
$4.02B
Free CF TTM
$780.21M
FCF margin
4.4%

Dividend

Shareholder payout

Yield
2.0%
Payout ratio
40.0%
Last ex-div date
2026-05-15