D/E 0.20 — less debt than most Consumer Defensive peers (≈25th pctile)
P/E18.6xB+
P/E 18.6 — below the Consumer Defensive median (≈40th pctile)
PEG1.03B+
PEG 1.03 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Entry · Margin of safety
52-week rangeMid-range
14% off the 12-month high
Quality signals · context only
Gross profitability35% · B+gross profit ÷ total assets (Novy-Marx)
ROIC9.2% · Breturn on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
The bull case hinges on New Oriental’s dominant test‑preparation and overseas‑study consulting franchise, which continues to capture rising demand for U.S. and Commonwealth entrance exams. That demand fuels a 13.6% YoY revenue growth rate, translates into a healthy 7.6% profit margin, and keeps the stock trading at a modest PE of 19 with a PEG of 1.06—a clear sign of undervalued growth. Coupled with the Bull Rankings model’s strongest pillar (Growth) and the company’s active share‑buybacks, the compounding engine of exam prep fees will keep accelerating earnings.
Moat
New Oriental’s moat lives in its integrated test‑prep ecosystem: students enroll in intensive language and entrance‑exam courses, then migrate to its overseas‑study consulting and intelligent learning devices, creating high switching costs and cross‑sell momentum. The company’s low debt‑to‑equity of 0.2 and a respectable ROE of 10.2% reflect capital efficiency that rivals can’t match without replicating the full‑stack service platform.
Risk
The bear case centers on regulatory headwinds in China’s private‑education sector; any tightening could blunt the lucrative test‑prep pipeline and compress the current 7.6% margin. A forward PE of 19 already embeds a premium for growth, so a slowdown would force the stock to re‑price sharply. Confirmation of the risk would be a policy announcement curbing for‑profit tutoring, which would immediately erode revenue growth.
Horizon
1-3 yr $73.30 (21-analyst consensus) — fundamentals + valuation re-rating. 5 yr $107.32 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $159.21 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · EDU
Trend
+8.2 over 45 daily scores
From 77.8 (Jun 22) → 86.0 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Analyst estimate revisions
30-day change
-0.0%
90-day change
-0.4%
Forward EPS estimate
$5.04
Over the last 90 days, what analysts expect EDU to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A fiscal-year roll fell inside this window: the forward horizon moved on to the next financial year, which shifts the earnings figure without any analyst changing their view. That step is excluded, so the number above covers the rest of the window rather than all of it.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · EDU
$
%
%
Shares to buy
35
Position size
$1,953
3.9% of portfolio
Stop price
$41.85
25% below $55.80
$ at risk if stopped
$488.25
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Latest EDU developments
Recent headlines from across the financial press · updated daily. Links open the source.
New Oriental Education & Techno (EDU): score, valuation & FAQ
New Oriental Education & Techno (EDU) is a Education & Training Services company that scores 86 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-), Rev (B+) and P/E (B+).
Is EDU a good stock to buy?
Bull Rankings scores EDU 86 out of 100 on its quality-growth model, which is a strong reading. That is driven by D/E (A-), Rev (B+) and P/E (B+). A score is a quantitative screen of New Oriental Education & Techno's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does EDU score 86 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). EDU earns its highest marks on D/E (A-), Rev (B+) and P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is EDU overvalued or undervalued?
We don't compute a reliable discounted-cash-flow value for EDU — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.
What are the main risks of investing in EDU?
The bear case centers on regulatory headwinds in China’s private‑education sector; any tightening could blunt the lucrative test‑prep pipeline and compress the current 7.6% margin. A forward PE of 19 already embeds a premium for growth, so a slowdown would force the stock to re‑price sharply. Confirmation of the risk would be a policy announcement curbing for‑profit tutoring, which would immediately erode revenue growth.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.