New Oriental Education & Technology Group Inc.
New Oriental Education & Technology Group Inc. Fundamental Analysis
New Oriental Education & Technology Group Inc. (9901.HK) shows moderate financial fundamentals with a PE ratio of 23.85, profit margin of 7.41%, and ROE of 10.03%. The company generates $5.1B in annual revenue with strong year-over-year growth of 13.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 9901.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak9901.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate9901.HK shows balanced valuation metrics.
Growth Score
Excellent9901.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent9901.HK maintains a strong and stable balance sheet.
Profitability Score
Weak9901.HK struggles to sustain strong margins.
Key Financial Metrics
Is 9901.HK Expensive or Cheap?
P/E Ratio
9901.HK trades at 23.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9901.HK's PEG of 48.60 indicates potential overvaluation.
Price to Book
The market values New Oriental Education & Technology Group Inc. at 2.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.58 times EBITDA. This signals the market has high growth expectations.
How Well Does 9901.HK Make Money?
Net Profit Margin
For every $100 in sales, New Oriental Education & Technology Group Inc. keeps $7.41 as profit after all expenses.
Operating Margin
Core operations generate 9.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.03 in profit for every $100 of shareholder equity.
ROA
New Oriental Education & Technology Group Inc. generates $4.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New Oriental Education & Technology Group Inc. produces operating cash flow of $714.40M, showing steady but balanced cash generation.
Free Cash Flow
New Oriental Education & Technology Group Inc. generates strong free cash flow of $714.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.45 in free cash annually.
FCF Yield
9901.HK converts 7.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
48.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 9901.HK Stacks Against Its Sector Peers
| Metric | 9901.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.85 | 22.36 | Neutral |
| ROE | 10.03% | 1238.00% | Weak |
| Net Margin | 7.41% | -5096.00% (disorted) | Weak |
| Debt/Equity | 0.33 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 1.57 | 2.47 | Neutral |
| ROA | 4.59% | -191998.00% (disorted) | Weak |
9901.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews New Oriental Education & Technology Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.93%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-11.86%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
9.02%
Industry Style: Defensive, Dividend, Low Volatility
Growing