New Oriental Education & Technology Group (9901) AI Stock Analysis

• Market Cap: HK$65.25B
• Dividend Yield: N/A
• Average Volume (3M): 5.67M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.82
• Revenue Growth: 13.12%
• EPS Growth: 20.82%
• Country: HK
• Employees: 67,935
• Sector: Technology
• Sector Strength: 88
• Industry: Education & Training Services
• EPS (TTM): 0.48
• Shares Outstanding: 1,635,288,300
• 10 Day Avg. Volume: 6,915,045
• 30 Day Avg. Volume: 5,671,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$48.48
• Price Target Upside: 21.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: HK$49.00 ▲(22.81% Upside)

New Oriental Education & Technology Group receives a solid overall score driven by strong financial performance, particularly in revenue growth and profitability. The technical indicators suggest caution due to overbought conditions, while valuation appears fair. The absence of earnings call data and corporate events limits additional insights.

New Oriental Education & Technology Group Business Overview & Revenue Model

Company Description

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. It operates through K-12 AST, Test Preparation and Other Courses; Online Education; and Others segments. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to enhance their exam scores, as well as for children to teach English. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary school in Yangzhou seeking a full curriculum with a focus on English; develops and edits educational materials for language training and test preparation; and offers online education programs that include college, K-12, and pre-school education. In addition, the company offers overseas studies consulting and overseas study tour services. As of May 31, 2021, it offered educational programs, services, and products to students through a network of 122 schools, 1,547 learning centers, and 11 bookstores, as well as through its online learning platforms. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

New Oriental Education & Technology Group, Inc. makes money through various revenue streams, primarily driven by its educational services. The company generates significant revenue from tuition fees for its after-school tutoring programs and test preparation courses. Additionally, New Oriental earns income from selling educational materials and books, which complement its course offerings. The company also benefits from its online education platform, which provides digital learning resources and courses. Strategic partnerships with educational institutions and content providers further bolster its revenue, allowing New Oriental to expand its reach and enhance its service offerings. The company's diversified approach, combining offline and online education services, enables it to maintain a strong financial performance.

New Oriental Education & Technology Group Financial Statement Overview

Summary

New Oriental Education & Technology Group shows strong financial health with solid revenue growth and profitability improvements. The balance sheet reflects stability, supported by low leverage and substantial equity. While cash flow generation remains strong, the recent decline in free cash flow growth warrants attention.

Income Statement

The company has demonstrated impressive growth in revenue, with a notable TTM revenue growth rate of 11.13% compared to the previous year. Gross profit margin is strong at 55.03% TTM, indicating efficient cost management. Net profit margin improvements from past losses are also commendable, with a TTM net profit margin of 8.17%. The EBIT and EBITDA margins are solid at 9.33% and 12.33%, respectively, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity position, as evidenced by an equity ratio of 49.50% TTM. The debt-to-equity ratio is low at 0.20, indicating conservative leverage use. The return on equity has improved significantly, reaching 10.62% TTM. The balance sheet shows stability with ample cash reserves, though total assets have slightly decreased.

Cash Flow

The company has generated positive free cash flow with a TTM growth rate of -16.01%, which is a slight decline from the previous period. The operating cash flow to net income ratio is robust at 2.23, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 1.80 reflects good cash conversion, although there's room for improvement.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	4.79B	4.31B	3.00B	3.11B	4.28B	3.58B
Gross Profit	2.64B	2.26B	1.59B	1.35B	2.24B	1.99B
EBITDA	591.16M	600.96M	312.75M	-834.02M	383.73M	550.00M
Net Income	391.59M	309.59M	177.34M	-1.19B	334.41M	413.33M
Balance Sheet
Total Assets	7.45B	7.53B	6.39B	6.03B	10.15B	6.56B
Cash, Cash Equivalents and Short-Term Investments	4.29B	4.78B	4.00B	4.19B	6.26B	3.52B
Total Debt	738.64M	662.33M	458.60M	680.41M	2.16B	1.58B
Total Liabilities	3.47B	3.48B	2.58B	2.24B	5.13B	3.69B
Stockholders Equity	3.69B	3.78B	3.60B	3.71B	4.91B	2.74B
Cash Flow
Free Cash Flow	705.01M	839.25M	827.96M	-1.43B	693.74M	494.91M
Operating Cash Flow	874.30M	1.12B	971.01M	-1.28B	1.13B	804.46M
Investing Cash Flow	-869.15M	-1.15B	-37.41M	1.17B	-2.18B	-1.26B
Financing Cash Flow	-595.72M	-160.44M	-246.87M	-230.86M	1.65B	-17.86M

New Oriental Education & Technology Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9901, the sentiment is Positive. The current price of 39.9 is above the 20-day moving average (MA) of 39.24, above the 50-day MA of 38.02, and above the 200-day MA of 39.71, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 65.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9901.

New Oriental Education & Technology Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0839	77 Outperform	10.14B	29.05	2.64%	8.78%	12.33%	-80.20%
9901	69 Neutral	HK$65.25B	22.68	10.30%	―	13.12%	20.82%
3978	69 Neutral	4.08B	13.19	0.00%	4.42%	174.65%	145.66%
1797	66 Neutral	27.25B	8,620.00	0.00%	―	-33.04%	-98.87%
0667	66 Neutral	15.69B	22.35	8.92%	3.10%	7.48%	87.88%
2469	56 Neutral	6.40B	30.74	19.91%	―	-10.99%	-50.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

New Oriental Education & Technology Group Corporate Events

New Oriental Reports Mixed Financial Results for Q3 FY2025

New Oriental Education & Technology Group Inc. announced its unaudited financial results for the third fiscal quarter ended February 28, 2025. The company reported a 2.0% decrease in total net revenues year over year, amounting to US$1,183.1 million. However, excluding revenues from East Buy private label products and livestreaming business, net revenues increased by 21.2% to US$1,038.3 million. Operating income rose by 9.8% to US$124.5 million, and net income attributable to New Oriental saw a slight increase of 0.1% to US$87.3 million. These results indicate a mixed financial performance, with growth in core educational services offset by declines in other areas.

New Oriental Education Schedules Q3 Financial Results Announcement

New Oriental Education & Technology Group Inc. has announced a board meeting scheduled for April 22, 2025, to approve and discuss the unaudited financial results for the quarter ending February 28, 2025. The results will be published before the U.S. market opens on April 23, 2025, followed by an earnings teleconference call where the company’s management will discuss the results and answer questions. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.