New Oriental Education Tech (EDUN) AI Stock Analysis

New Oriental Education Tech

(BMV:EDUN)

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Positive Factors

Revenue Growth OutlookReiterated double-digit guidance indicates management sees sustained demand across multiple education businesses rather than relying on a single product. Growth in overseas preparation, adult and university programs, high school, college, and new initiatives supports broader revenue durability.

Negative Factors

Historical Earnings VolatilityThe 2022 downturn demonstrates that New Oriental's earnings and cash generation can deteriorate sharply when operating conditions change. Although recent performance has recovered, this history lowers confidence that current profitability and cash conversion will remain consistently stable through future stress.

New Oriental Education Tech (EDUN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 7.55B
Dividend Yield: 2.05%
Average Volume (3M): 13
Price to Earnings (P/E): 14.9
Beta (1Y): 0.63
Revenue Growth: 8.20%
EPS Growth: 28.44%
Country: Mexico
Employees: 81,054
Sector: Consumer Defensive
Sector Strength: 62
Industry: Education & Training Services

New Oriental Education Tech Business Overview & Revenue Model

Company Description

New Oriental Education & Technology Group Inc. (EDU) operates as a prominent private education provider throughout the People's Republic of China, primarily recognized by its "New Oriental" brand. The company organizes its operations across key segme...

New Oriental Education Tech Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q1-2027)|% Change Since:0.00%|Next Earnings Date:Jan 20, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Revenue exceeded the upper end of guidance, profitability increased, core education and East Buy margins expanded on a standalone basis, new initiatives delivered growth, East Buy and New Oriental Home showed strong momentum, and full-year guidance was reiterated. The main challenges were higher operating costs, stock-based compensation, stable rather than expanding consolidated margins due to business mix, overseas economic and international headwinds, and a temporary enrollment decline caused by timing differences.

Positive Updates

Revenue and Non-GAAP Operating Income Growth

Total net revenue grew 23.1% year over year to $1.87 thousand million, exceeding the upper range of prior guidance. Non-GAAP operating income rose 21.2% year over year to $406.8 million.

Negative Updates

Consolidated Operating Margin Remained Stable

Although core education and East Buy margins expanded, the consolidated operating margin remained broadly stable year over year because East Buy's rapid growth increased its share of group revenue and shifted the business mix. Management noted that core education margins are typically higher than East Buy's in the first quarter due to seasonality.

Company Guidance

For fiscal year 2027, New Oriental reiterated total net revenue guidance of $6.45 thousand million to $6.68 thousand million, representing a year over year increase in the range of 14% to 18%; management expects revenue growth in the coming Q2 to be higher than the revenue growth of the Q1, with overseas test-prep revenue growth over 5% year-over-year in dollar terms, new business revenue growth roughly high teens, or is that close to 20% or roughly 20%, high school business roughly 15% top-line growth year over year, college business around 20% or even maybe higher, and East Buy's revenue growth accelerated in Q2. Management expects margin expansion across all business lines in fiscal year 2027, plans to open 10% to 15% in the learning centers for the whole year, roughly 15% for the K-9 business, and expects the K-9 business, the new business, to grow somewhere around 20% year-over-year in the dollar terms; over the next 2 to 3 years, the plan is to drive the margin up step by step.

New Oriental Education Tech Risk Analysis

New Oriental Education Tech disclosed 82 risk factors in its most recent earnings report. New Oriental Education Tech 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

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 Tech Peers Comparison

Overall Rating

Financial Indicators

MX:EDUN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

* Consumer Defensive Sector Average

Performance Comparison

MX:EDUN and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	MX:EDUN	New Oriental Education & Technology	1109.15	25.01	2.31%

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.

New Oriental Education Tech AI Stock Analysis