New Oriental Education & Technology Group Inc. (EDU)
Consumer Defensive · NYQ · US
Fundamentals
Valuation and ratings
New Oriental Education & Technology Group Inc. trades at USD49.43, which is 114% below the USD105.87 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 63 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 18.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About New Oriental Education & Technology Group Inc.
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. The company operates through four segments: Educational Services and Test Preparation Courses; Private Label Products and Livestreaming E-Commerce; Overseas Study Consulting Services; and Educational Materials and Distribution. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People's Republic of China. It also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services. In addition, the company offers online education services through the Koolearn.com platform. Further, it develops and edits educational materials for language training and test preparation. In addition, the company offers educational programs, services, and products to students through schools; learning centers; and bookstores, as well as through its online learning platforms. New Oriental Education & Technology Group Inc. was founded in 1993 and is headquartered in Beijing, the People's Republic of China.
EDU passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
8 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$166.94M · 0.3% of book
- Steve Cohen, Point72 Asset Management, L.P.$44.61M · 0.1% of book
- Ken Griffin, CITADEL ADVISORS LLC$32.26M · 0.0% of book
- Mason Hawkins, SOUTHEASTERN ASSET MANAGEMENT INC/TN/$29.58M · 0.8% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$15.90M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is New Oriental Education & Technology Group Inc. (EDU) undervalued?
Against our discounted cash flow estimate of USD105.87, EDU at USD49.43 is 114% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own EDU?
8 of the institutions we track reported a position in EDU in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is EDU's P/E ratio?
EDU trades at 18.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for EDU, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.