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

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HK:9901

New Oriental Education & Technology Group

(HKEX:9901)

Select Model
Rating:66Neutral
Price Target:HKD 40.00â–²(4.33% Upside)
Action:downgraded
Date:10/30/26

The score is supported primarily by solid financial performance (post-2022 recovery, low leverage, and positive free cash flow) and a reasonable valuation (P/E ~14.3 with a ~2.56% dividend yield). These positives are offset by weak technicals, with the stock trading below key moving averages and soft momentum indicators.

Positive Factors
Revenue RecoveryThe strong post-2022 revenue recovery indicates that the company regained demand for its education services and products. Continued growth in 2026, even at a slower pace, supports a larger operating base and provides a foundation for sustained earnings generation over the next several quarters.
Negative Factors
Growth DecelerationThe sharp deceleration in revenue growth raises questions about how durable the post-recovery expansion rate will be. Slower top-line progress can limit operating leverage, reduce the pace of earnings improvement, and make future performance more dependent on maintaining healthy margins and execution.

New Oriental Education & Technology Group (9901) vs. iShares MSCI Hong Kong ETF (EWH)

-30%-20%-10%0%10%20%HK:9901-14.51%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 53.63B
Dividend Yield
2.45%
Average Volume (3M)
4.15M
Price to Earnings (P/E)
14.9
Beta (1Y)
0.95
Revenue Growth
20.81%
EPS Growth
41.58%
Country
Hong Kong
Employees
88,372
Sector
Consumer Defensive
Sector Strength
62
Industry
Education & Training Services

New Oriental Education & Technology Group Business Overview & Revenue Model

Company Description

New Oriental Education & Technology Group Inc. is a prominent provider of private educational services operating under the "New Oriental" brand across the People's Republic of China. Its operations are broadly organized into segments focusing on K-12...

How the Company Makes Money

New Oriental primarily generates revenue by charging users for education services and selling education-related products. Key revenue streams include: (1) Tuition and fees from educational programs and services: the company earns income from enrollme...

New Oriental Education & Technology Group Financial Statement Overview

Summary

Financials show a clear post-2022 recovery with improved profitability, positive operating/free cash flow over the last four years, and a conservatively financed balance sheet (low leverage, improving ROE). Key risks are historical volatility and a meaningful slowdown in revenue growth in 2026, plus somewhat weaker recent cash conversion versus 2023–2024.

Income Statement

78Positive

Balance Sheet

84Very Positive

Cash Flow

73Positive
Financial statement breakdown
BreakdownTTMMay 2026May 2025May 2024May 2023May 2022
Income Statement
Total Revenue5.37B5.64B4.90B4.31B3.00B3.11B
Gross Profit2.95B3.08B2.72B2.26B1.59B1.35B
EBITDA876.97M820.08M634.44M600.96M312.75M-834.02M
Net Income420.05M473.77M371.72M309.59M177.34M-1.19B
Balance Sheet
Total Assets8.24B8.79B7.81B7.53B6.39B6.03B
Cash, Cash Equivalents and Short-Term Investments4.96B5.29B4.58B4.78B4.00B4.19B
Total Debt806.89M849.02M803.78M662.33M458.60M680.41M
Total Liabilities3.83B4.47B3.85B3.48B2.58B2.24B
Stockholders Equity4.09B3.99B3.66B3.78B3.60B3.71B
Cash Flow
Free Cash Flow759.49M780.17M896.59M839.25M827.96M-1.43B
Operating Cash Flow907.45M1.03B896.59M1.12B971.01M-1.28B
Investing Cash Flow-213.87M-457.70M-93.43M-1.15B-37.41M1.17B
Financing Cash Flow-325.91M-380.15M-584.97M-160.44M-246.87M-230.86M

New Oriental Education & Technology Group Technical Analysis

Technical Analysis SentimentNegative
Last Price38.34

Price Trends

50DMA44.57Negative
100DMA41.94Negative
200DMA42.38Negative

Market Momentum

MACD-0.82Positive
RSI31.68Neutral
STOCH9.31Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9901, the sentiment is Negative. The current price of 38.34 is below the 20-day moving average (MA) of 44.79, below the 50-day MA of 44.57, and below the 200-day MA of 42.38, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9901.

New Oriental Education & Technology Group Risk Analysis

New Oriental Education & Technology Group disclosed 82 risk factors in its most recent earnings report. New Oriental Education & Technology Group reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks
1.Our ADSs may be delisted under the Holding Foreign Companies Accountable Act if the PCAOB is unable to inspect auditors who are located in China. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections deprives our investors with the benefits of such inspections.Q2, 2021
2.We adopt different practices as to certain matters as compared with many other companies listed on the Hong Kong Stock Exchange.Q2, 2021
3.Exchange between our common shares and our ADSs may adversely affect the liquidity and/or trading price of each other.Q2, 2021

New Oriental Education & Technology Group Peers Comparison

Overall Rating

UnderperformOutperform
Sector (62)

Financial Indicators

HK:9901 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1890HK:189076OutperformHKD 1.67B1.6414.92%15.57%19.80%-10.87%
HK:3978HK:397869NeutralHKD 1.77B4.8836.98%12.58%23.93%13.07%
HK:9901HK:990166NeutralHKD 53.63B14.8712.52%2.45%20.81%41.58%
HK:0839HK:083965NeutralHKD 5.11B5.434.48%―8.65%142.58%
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
HK:2469HK:246960NeutralHKD 538.04M-2.12-17.25%―-4.90%-217.79%

* Consumer Defensive Sector Average

Performance Comparison

-75%-50%-25%0%HK:9901HK:1890HK:2469HK:3978HK:0839Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:9901 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:9901New Oriental Education & Technology Group, Inc.38.34-6.56-14.62%
HK:1890China Kepei Education Group Limited0.83-0.46-35.52%
HK:2469Fenbi Limited0.24-2.84-92.07%
HK:3978China Beststudy Education Group2.36-2.44-50.88%
HK:0839China Education Group Holdings Limited1.82-1.17-38.96%

New Oriental Education & Technology Group Corporate Events

New Oriental Declares Second Cash Dividend Installment for Fiscal 2027

Oct 30, 2026

New Oriental Education & Technology Group Inc., a major China-based provider of private education and technology-enabled learning services, offers tutoring, test preparation and other enrichment programs through both offline and online platforms...

New Oriental Declares First Cash Dividend Installment for Fiscal 2027

Oct 30, 2026

New Oriental Education & Technology Group Inc., a prominent private education services provider focused on language training, test preparation and broader academic programs in China and beyond, is listed on the Hong Kong Stock Exchange under stoc...

New Oriental Posts Double-Digit Revenue and Profit Growth in First Fiscal Quarter 2027

Oct 28, 2026

New Oriental reported strong unaudited results for the first fiscal quarter ended August 31, 2026, the opening quarter of its 2027 financial year. The company delivered solid top-line and bottom-line growth, underscoring resilient demand for private...

New Oriental sets October dates for FY2027 Q1 results and earnings call

Oct 12, 2026

New Oriental Education & Technology Group’s board has scheduled a meeting for October 27, 2026 to approve and publish the unaudited financial results for the three months ended August 31, 2026. The company plans to release these quarterly f...

New Oriental sets November shareholder meeting and record date

Oct 8, 2026

New Oriental Education & Technology Group has scheduled its annual general meeting of shareholders for November 13, 2026, in Beijing, and is making its latest annual report available online to investors. The company reiterates that no shareholder...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026