New Oriental Education & Technology Group Inc. Sponsored ADR representing 10 (Cayman Islands)
Find Ratings ReportsNEW ORIENTAL ED & TECH's gross profit margin for the second quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. NEW ORIENTAL ED & TECH has strong liquidity. Currently, the Quick Ratio is 1.73 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 6.16% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q2 FY23 | Q2 FY22 |
---|---|---|
Net Sales ($mil) | 869.6 | 638.21 |
EBITDA ($mil) | 0.0 | 0.0 |
EBIT ($mil) | 21.34 | -2.49 |
Net Income ($mil) | 30.07 | 0.73 |
Balance Sheet | Q2 FY23 | Q2 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 4577.24 | 4275.88 |
Total Assets ($mil) | 7131.49 | 6023.55 |
Total Debt ($mil) | 510.67 | 487.03 |
Equity ($mil) | 3829.62 | 3607.18 |
Profitability | Q2 FY23 | Q2 FY22 |
---|---|---|
Gross Profit Margin | 51.41 | 47.32 |
EBITDA Margin | 0.0 | 0.0 |
Operating Margin | 2.45 | -0.39 |
Sales Turnover | 0.5 | 0.42 |
Return on Assets | 4.29 | -4.06 |
Return on Equity | 7.99 | -6.79 |
Debt | Q2 FY23 | Q2 FY22 |
---|---|---|
Current Ratio | 1.87 | 2.4 |
Debt/Capital | 0.12 | 0.12 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q2 FY23 | Q2 FY22 |
---|---|---|
Shares outstanding (mil) | 164.32 | 169.7 |
Div / share | 0.0 | 0.0 |
EPS | 0.18 | 0.0 |
Book value / share | 23.31 | 21.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1958200.0 | 1468141.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 133.57 for the Educational Services subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 4.01 indicates a discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 4.51. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, NEW ORIENTAL ED & TECH proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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EDU 51.34 | Peers 133.57 | EDU 12.19 | Peers 23.80 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. EDU is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. EDU is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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EDU NA | Peers 36.89 | EDU NA | Peers 0.97 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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EDU 4.01 | Peers 4.51 | EDU 226.38 | Peers 106.52 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. EDU is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. EDU is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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EDU 4.28 | Peers 5.18 | EDU 42.17 | Peers 25.26 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. EDU is trading at a discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. EDU has a sales growth rate that significantly exceeds its peers. |
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