Morningstar

New Oriental Education & Technology Group Inc Ordinary Shares 09901

Morningstar Rating
Unlock
Stock XHKG Rating as of
HK$59.95 −3.95 (6.18%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

New Oriental's Capacity Expansion Accelerates

Cheng Wang

After terminating its K-9 academic tutoring in 2021, New Oriental identified a few new business initiatives, such as nonacademic tutoring and intelligent learning systems and devices. We are positive on these initiatives given New Oriental’s expertise in after-school tutoring and curriculum development. The new businesses accounted for only about 17% of revenue in fiscal 2023 but growth is robust. We project a 27% revenue contribution by fiscal 2028.

Read Full Report

Price vs Fair Value

View History
09901 is trading at a 460% premium.
Price
HK$63.90
Fair Value
HK$83.00
Uncertainty
Very High
1-Star Price
HK$17.57
5-Star Price
HK$72.40
Economic Moat
Chb
Capital Allocation
Tkbnnynfn

Bulls Say, Bears Say

Bulls

The margin trend of New Oriental's new businesses is better than expected.

Bears

High school academic after-school tutoring as a for-profit business carries very high policy risk.

Show More

Trading Information

Previous Close Price
HK$63.90
Day Range
HK$57.40–61.70
52-Week Range
HK$45.00–77.05
Bid/Ask
HK$59.90 / HK$59.95
Market Cap
HK$98.04 Bil
Volume/Avg
7.7 Mil / 5.2 Mil

Key Statistics

Price/Earnings (Normalized)
33.00
Price/Sales
3.16
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
0.47%

Company Profile

New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental’s revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. The company also owns 55% of East Buy, a market leader in livestreaming e-commerce.
Sector
Consumer Defensive
Industry
Education & Training Services
Stock Style Box
Large Growth
Total Number of Employees
75,005
Website
https://www.neworiental.org

Competitors

Valuation

View More
Metric
09901
00667
TAL
Price/Earnings (Normalized)
 33.0017.8739.80
Price/Book Value
 3.571.241.94
Price/Sales
 3.161.614.39
Price/Cash Flow
 22.596.1516.72
Price/Earnings
09901
00667
TAL

Financial Strength

Metric
09901
00667
TAL
Quick Ratio
 1.661.592.56
Current Ratio
 1.801.672.94
Interest Coverage
 1,142.792.92—
Quick Ratio
09901
00667
TAL

Profitability

Metric
09901
00667
TAL
Return on Assets (Normalized)
 5.46%3.92%2.75%
Return on Equity (Normalized)
 10.12%6.67%3.69%
Return on Invested Capital (Normalized)
 5.75%5.46%1.72%
Return on Assets
09901
00667
TAL

Education & Training Services Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
New Oriental Education & Technology Group Inc ADR
EDU
ZnmxjkbjMswgt$13.4 Bil
 TAL Education Group ADR
TAL
DrmgjBpl$7.1 Bil
 Grand Canyon Education Inc
LOPE
—Wclny$4.1 Bil
 Stride Inc
LRN
—Vbsk$3.6 Bil
 Graham Holdings Co
GHC
PsbrmzgxHdgg$3.5 Bil
 Adtalem Global Education Inc
ATGE
DkpkydklWfrkb$2.8 Bil
 Laureate Education Inc Shs
LAUR
—Jwyrm$2.4 Bil
 Strategic Education Inc
STRA
QxvrhxhwxkDttns$2.2 Bil
 Afya Ltd Class A
AFYA
—Kjygvk$1.5 Bil
 Perdoceo Education Corp
PRDO
—Klwdn$1.4 Bil

Sponsor Center