New Oriental Education & Technology Group Inc. Sponsored ADR representing 10 Ordinary Share (Cayman Islands) (EDU)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

On the 2026-10-13 close of $58.62, New Oriental has an $8.6 billion market value. I see a Chinese education and test-prep business with adjacent private-label and livestreaming commerce operations. The latest reported quarter, 2026-Q2, produced $1.5 billion of revenue but only $62.2 million of net income, a 4.07% net margin. That is thin. FairStock’s figures put the P/E at 19.54, P/B at 2.29, ROE at 12.48%, ROCE at 4.84%, and debt-to-equity at 0.20. The balance sheet looks conservative, and trailing free cash flow of $780.2 million gives a 9.0% FCF yield, which is attractive. But return on capital is modest. The Graham Number is $13.17 versus the $58.62 close, leaving a margin of safety of -345.10%; asset-based value is not there. The Piotroski F-Score is 6/9 and Altman Z-Score is 1.95, suggesting some strength but not a fortress. The supplied data show revenue growth of 23.04% and profit growth of 775.80%, but the periods are not specified, so I would not treat them as durable without more filings. FairStock cannot assign a Lynch category because only 0 years of filed results are available, needing 3. At 19.54 times earnings, the price asks for continued execution and margin recovery, not a bargain.

In plain English: New Oriental is a Chinese education and test-preparation company that also sells private-label products and runs livestreaming e-commerce. In the latest reported quarter, 2026-Q2, it earned $62.2 million on $1.5 billion of revenue, a thin 4.07% margin, though it has strong cash flow and little debt. At $58.62 on 2026-10-13, the price looks neither a clear bargain nor wildly expensive based on the numbers given.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer