New Oriental Education & Technology Group: Stock Analysis and Future Outlook

New Oriental Education & Technology Group (NYSE: EDU) is the largest provider of private educational services in China, based on program offerings, student enrollments, and geographic presence. This analysis provides an overview of EDU's stock performance, financial health, and future prospects as of September 2025.

Company Overview

New Oriental offers a diverse range of educational programs, services, and products. These include English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC, and Commonwealth countries. The company also provides primary and secondary school education, develops and distributes educational content, software, and other technology, and offers online education. New Oriental operates under the New Oriental brand in the People’s Republic of China and is structured into four segments:

Educational Services and Test Preparation Courses: This segment focuses on providing courses and services to students preparing for various examinations.
Online Education and Other Services: This includes online educational programs and other related services.
Overseas Study Consulting Services: This segment assists students in their applications to study abroad.
Educational Materials and Distribution: This involves the development and distribution of educational content and materials.

Stock Performance

As of September 18, 2025, the latest closing stock price for New Oriental Education & Technology was $52.52. On September 19, 2025, the stock was trading at $52.28, a slight decrease of 0.46%.

Recent Performance: As of 25 days ago, the shares were trading at $48.06, after a 0.90% increase. Over the past month, the stock went up by 2.97%.
52-Week Range: The stock price has decreased by -13.35% in the last 52 weeks.
Volatility: The beta is 0.24, indicating that EDU's price volatility has been lower than the market average.
Moving Averages: The 50-day moving average is $48.62, and the 200-day moving average is $50.68.
Relative Strength Index (RSI): The RSI is 57.53.

Financial Health

New Oriental's financial performance shows a company with substantial revenue and increasing earnings.

Market Capitalization: EDU has a market cap or net worth of $8.55 billion.
Enterprise Value: The enterprise value is $4.77 billion.
Revenue: In 2025, EDU's revenue was $4.90 billion, an increase of 13.60% compared to the previous year's $4.31 billion.
Earnings: Earnings were $371.72 million, an increase of 20.07%.
Profitability: Key profitability statistics from the latest earnings report (TTM) show a gross profit of $2.72 billion and earnings of $371.72 million.
Earnings Per Share (EPS): Earnings per share was $2.29.
Margins: Gross margin is 55.45%, with operating and profit margins of 9.97% and 7.59%.
Valuation Ratios: The trailing PE ratio is 22.89, and the forward PE ratio is 15.56. EDU's PEG ratio is 0.82.
Financial Position: The company has a current ratio of 1.58, with a Debt / Equity ratio of 0.20.
Cash Position: The company has $4.58 billion in cash and $803.78 million in debt, giving a net cash position of $3.77 billion or $23.08 per share.
Return on Equity (ROE): 9.39%
Return on Invested Capital (ROIC): 6.45%

Key Financial Ratios

PE Ratio: 22.89
Forward PE: 15.56
PS Ratio: 1.74
PB Ratio: 2.28
PEG Ratio: 0.82
EV / Earnings: 12.84
EV / Sales: 0.97
EV / EBITDA: 8.01
Debt / Equity: 0.20
Current Ratio: 1.58

Share Statistics

Shares Outstanding: 163.53 million
Shares Change (YoY): -2.30%
Owned by Insiders (%): 12.19%
Owned by Institutions (%): 54.23%
Float: 115.17M

Analyst Perspective

According to 5 analysts, the average rating for EDU stock is "Hold." The 12-month stock price target is $56.6, which is an increase of 8.26% from the latest price. The average price target for EDU is $56.60, which is 8.26% higher than the current price.

Analyst Consensus: Hold
Price Target: $56.60

Dividends and Buybacks

EDU does not appear to pay any dividends at this time. However, the company has a buyback yield of 2.30%.

Buyback Yield: 2.30%

Enterprise Valuation

EV / EBITDA: 8.01
EV / FCF: 5.32

Financial Efficiency

Return on Equity (ROE): 9.39%
Return on Assets (ROA): 3.98%
Return on Invested Capital (ROIC): 6.45%

Short Selling Information

Short Interest: 6.03M
Short % of Shares Out: 4.33%
Short Ratio (days to cover): 4.59

Important Dates

Next Estimated Earnings Date: Wednesday, October 22, 2025, before market open.

Historical Data

The company had a reverse stock split on April 8, 2022, with a ratio of 1:10.

Additional Factors

New Oriental Education & Technology is also associated with East Buy, holding a 57% ownership stake in this leading livestreaming e-commerce market player.

Potential Risks

While no specific risks were detected in the risk checks, it is important to consider potential challenges:

Competition: Intensifying competition in the K-12 education services market could lead to a deceleration in growth.
Changing International Relations: As noted in previous reports, changing international relations could impact the business catering to students planning to study abroad.
Regulatory Changes: The private education sector in China is subject to regulatory changes, which could impact New Oriental's operations and financial performance.

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