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New Oriental Education & Technology Group
(9901)
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Rating:66Neutral
Price Target:
HK$40.00
▼(-13.64% Downside)
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 Recovery
The 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 Deceleration
The 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The 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.
Read all positive factors
New Oriental Education & Technology Group (9901) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$53.63B
Dividend Yield2.45%
Average Volume (3M)4.16M
Price to Earnings (P/E)14.9
Beta (1Y)0.95
Revenue Growth20.81%
EPS Growth41.58%
CountryHK
Employees88,372
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.30
Shares Outstanding1,550,295,800
10 Day Avg. Volume5,829,823
30 Day Avg. Volume4,159,005
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)1.87
Price to Sales (P/S)1.32
P/FCF Ratio9.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$60.35Price Target Upside30.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)3.33
Revenue Forecast (FY)HK$52.45B
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...
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 enrol...
New Oriental Education & Technology Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.37B | 5.64B | 4.90B | 4.31B | 3.00B | 3.11B |
| Gross Profit | 2.95B | 3.08B | 2.72B | 2.26B | 1.59B | 1.35B |
| EBITDA | 876.97M | 820.08M | 634.44M | 600.96M | 312.75M | -834.02M |
| Net Income | 420.05M | 473.77M | 371.72M | 309.59M | 177.34M | -1.19B |
Balance Sheet | ||||||
| Total Assets | 8.24B | 8.79B | 7.81B | 7.53B | 6.39B | 6.03B |
| Cash, Cash Equivalents and Short-Term Investments | 4.96B | 5.29B | 4.58B | 4.78B | 4.00B | 4.19B |
| Total Debt | 806.89M | 849.02M | 803.78M | 662.33M | 458.60M | 680.41M |
| Total Liabilities | 3.83B | 4.47B | 3.85B | 3.48B | 2.58B | 2.24B |
| Stockholders Equity | 4.09B | 3.99B | 3.66B | 3.78B | 3.60B | 3.71B |
Cash Flow | ||||||
| Free Cash Flow | 759.49M | 780.17M | 896.59M | 839.25M | 827.96M | -1.43B |
| Operating Cash Flow | 907.45M | 1.03B | 896.59M | 1.12B | 971.01M | -1.28B |
| Investing Cash Flow | -213.87M | -457.70M | -93.43M | -1.15B | -37.41M | 1.17B |
| Financing Cash Flow | -325.91M | -380.15M | -584.97M | -160.44M | -246.87M | -230.86M |
New Oriental Education & Technology Group Technical Analysis
Negative
46.32
Price Trends
44.57
Negative
41.94
Negative
42.38
Negative
Market Momentum
-0.82
Positive
31.68
Neutral
9.31
Positive
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 46.32 is above the 20-day moving average (MA) of 44.79, above the 50-day MA of 44.57, and above 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Oriental Education & Technology Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$1.67B | 1.64 | 14.92% | 15.57% | 19.80% | -10.87% | |
67 Neutral | HK$1.77B | 4.88 | 36.98% | 12.58% | 23.93% | 13.07% | |
66 Neutral | HK$53.63B | 14.87 | 12.52% | 2.45% | 20.81% | 41.58% | |
65 Neutral | HK$5.11B | 5.43 | 4.48% | 16.74% | 8.65% | 142.58% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | HK$538.04M | -2.12 | -17.25% | ― | -4.90% | -217.79% |
* Consumer Defensive Sector Average
HK:9901
New Oriental Education & Technology Group
38.34
-6.56
-14.62%
HK:1890
China Kepei Education Group Limited
0.84
-0.46
-35.52%
HK:2469
Fenbi Limited
0.25
-2.84
-92.07%
HK:3978
China Beststudy Education Group
2.36
-2.45
-50.88%
HK:0839
China Education Group Holdings Limited
1.83
-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 to...
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 stock ...
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 priva...
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 fig...
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 r...
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.