Now trading at a price of $58.01, New Oriental Education & Technology has moved -0.9% so far today.
New Oriental Education & Technology returned losses of -7.0% last year, with its stock price reaching a high of $68.53 and a low of $40.66. Over the same period, the stock underperformed the S&P 500 index by -25.6%. AThe company's 50-day average price was $52.61. New Oriental Education & Technology Group Inc. engages in the provision of private educational services under the New Oriental brand in the People's Republic of China. Based in Beijing, China, the Mid-Cap Real Estate company has 76,646 full time employees. New Oriental Education & Technology has not offered a dividend during the last year.
Summary of the Company's Finances:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,096 | $3,579 | $4,277 | $3,105 | $2,998 | $4,314 |
| Operating Margins | 10% | 11% | 3% | -32% | 6% | 8% |
| Net Margins | 8% | 12% | 8% | -38% | 6% | 7% |
| Net Income (M) | $238 | $413 | $334 | -$1,188 | $177 | $310 |
| Net Interest Expense (M) | $2 | $5 | $7 | $4 | $1 | $0 |
| Depreciation & Amort. (M) | $110 | $146 | $226 | $192 | $117 | $101 |
| Diluted Shares (M) | 159 | 160 | 1,652 | 1,696 | 1,686 | 1,669 |
| Earnings Per Share | $1.5 | $2.59 | $0.2 | -$0.7 | $0.11 | $0.18 |
| EPS Growth | n/a | 72.67% | -92.28% | -450.0% | 115.71% | 63.64% |
| Free Cash Flow (M) | $537 | $495 | $701 | -$1,431 | $828 | $873 |
| CAPEX (M) | $269 | $310 | $429 | $151 | $143 | $249 |
| Total Debt (M) | $96 | $118 | $298 | $65 | $15 | $14 |
| Net Debt / EBITDA | -3.17 | -1.46 | -3.83 | 1.37 | -5.37 | -3.05 |
| Current Ratio | 1.73 | 1.52 | 1.89 | 2.62 | 1.96 | 1.8 |
New Oriental Education & Technology has generally positive cash flows and growing revenues and a flat capital expenditure trend. Additionally, the company's financial statements display a decent current ratio of 1.8 and healthy leverage levels. However, the firm suffers from weak operating margins with a negative growth trend and declining EPS growth.
an Increase in Expected Earnings Improves Its Value Outlook but Priced at a Premium:
New Oriental Education & Technology has a trailing twelve month P/E ratio of 22.9, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $4.32, the company has a forward P/E ratio of 12.2. According to the 16.3% compound average growth rate of New Oriental Education & Technology's historical and projected earnings per share, the company's PEG ratio is 1.4. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 12.3%. On this basis, the company's PEG ratio is 1.87. This suggests that these shares are overvalued. Furthermore, New Oriental Education & Technology is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.36 is higher than the sector average of 1.94. The company's shares are currently trading 1814.4% below their Graham number.
New Oriental Education & Technology Has an Analyst Consensus of Some Upside Potential:
The 23 analysts following New Oriental Education & Technology have set target prices ranging from $41.7 to $78.6 per share, for an average of $60.94 with a buy rating. The company is trading -4.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
New Oriental Education & Technology has an average amount of shares sold short because 4.7% of the company's shares are sold short. Institutions own 38.8% of the company's shares, and the insider ownership rate stands at 2.03%, suggesting a decent amount of insider shareholders. The largest shareholder is First Beijing Investment Ltd, whose 4% stake in the company is worth $412,724,840.
