New Oriental Education & Technology Group Inc. Sponsored ADR
New Oriental Education & Technology Group Inc. Sponsored ADR is a China-based education services company that provides private educational programs and related products under the New Oriental brand. The company serves students and families through test preparation, language training, academic tutoring, overseas study consulting, educational materials, and digital learning tools. Its business also includes livestreaming e-commerce and private label products, broadening its presence beyond classroom instruction into consumer-oriented learning and retail offerings. New Oriental Education & Technology Group Inc. Sponsored ADR plays an important role in China’s private education market by combining in-person services, online platforms, and learning devices to support a wide range of student needs.
$58.68
-$0.82 (-1.38%)
Price from 2 days ago
11.33% operating margin is respectable but not wide. ROIC at 7.50%.
Revenue grew 13.6% in the fiscal year ended May 2025, still solid. Free cash flow declined 24% despite revenue growth, conversion is weakening.
Free cash flow declined 24% in the fiscal year ended May 2025 versus the year before, cash generation momentum has weakened.
19.56x earnings, 14.48x FCF. A middle-of-the-range multiple: the price assumes roughly the current trajectory.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$5.37B
▲ +13.6% YoY
Net Income (TTM)
$455M
▲ +15.6% YoY
Op. Margin
11.33%
▲ +1.8pp YoY
ROIC
7.50%
▲ +1.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$648M
▼ -24.1% YoY
Op. Cash Flow (TTM)
$648M
▼ -30.5% YoY
Net Debt
-$3.77B
Net Cash Position
Cash & Equiv.
$4.58B
3Y CAGR: +16.4%
Continue Research
Is New Oriental Education & Technology Group Inc. Sponsored ADR (EDU) overvalued?
At a P/E of 19.6 and a price-to-free-cash-flow of 14.5, New Oriental Education & Technology Group Inc. Sponsored ADR (EDU) trades below a two-stage DCF intrinsic value of about $93.81 per share, so at $58.68 the stock looks undervalued (59.9% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, New Oriental Education & Technology Group Inc. Sponsored ADR scores 73/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is New Oriental Education & Technology Group Inc. Sponsored ADR's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $93.81 per share for EDU, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $70.36. At today's $58.68, that puts the stock about 59.9% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is New Oriental Education & Technology Group Inc. Sponsored ADR a high-quality business?+
New Oriental Education & Technology Group Inc. Sponsored ADR scores 73 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 11.3% operating margin and a 7.5% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is New Oriental Education & Technology Group Inc. Sponsored ADR a good stock to buy right now?+
That depends on valuation and quality together, not either alone. EDU currently trades below its estimated intrinsic value and scores 73/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Education & Training Services
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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