3 Stocks Pushing The Services Sector Lower
- The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 20.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EDU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EDU has a quick ratio of 1.94, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Diversified Consumer Services industry and the overall market, NEW ORIENTAL ED & TECH's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- NEW ORIENTAL ED & TECH reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEW ORIENTAL ED & TECH increased its bottom line by earning $1.38 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.38).
- The gross profit margin for NEW ORIENTAL ED & TECH is rather high; currently it is at 60.41%. Regardless of EDU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 14.91% trails the industry average.
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