New Oriental Education & Technology Group Inc. ADR (EDU) vs. Its Peers: A Comparison

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New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) has a price-to-earnings ratio of 40.39x that is above its average ratio. Additionally, the 36-month beta value for EDU is 0.44. There are mixed opinions on the stock, with 15 analysts rating it as a “buy,” 8 rating it as “overweight,” 0 rating it as “hold,” and 2 rating it as “sell.”

The public float for EDU is 165.48M and currently, short sellers hold a 4.18% ratio of that float. The average trading volume of EDU on July 22, 2024 was 1.76M shares.

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EDU) stock’s latest price update

The stock price of New Oriental Education & Technology Group Inc. ADR (NYSE: EDU) has jumped by 1.90 compared to previous close of 74.05. Despite this, the company has seen a gain of 1.63% in its stock price over the last five trading days. seekingalpha.com reported 2024-07-12 that New Oriental Education is likely to deliver a Q4 FY 2024 results beat, thanks to faster-than-expected learning center expansion, lower-than-expected marketing costs, and positive operating leverage. New Oriental Education is attractively valued at a PEG multiple of 0.74 times. My rating for EDU stock is revised to a Buy, considering the stock’s current valuations and its fourth quarter results preview.

EDU’s Market Performance

EDU’s stock has risen by 1.63% in the past week, with a monthly rise of 4.83% and a quarterly drop of -11.21%. The volatility ratio for the week is 3.20% while the volatility levels for the last 30 days are 3.38% for New Oriental Education & Technology Group Inc. ADR The simple moving average for the past 20 days is -1.75% for EDU’s stock, with a -3.89% simple moving average for the past 200 days.

Analysts’ Opinion of EDU

Many brokerage firms have already submitted their reports for EDU stocks, with HSBC Securities repeating the rating for EDU by listing it as a “Buy.” The predicted price for EDU in the upcoming period, according to HSBC Securities is $110 based on the research report published on May 29, 2024 of the current year 2024.

Morgan Stanley gave a rating of “Overweight” to EDU, setting the target price at $81 in the report published on November 07th of the previous year.

EDU Trading at -4.10% from the 50-Day Moving Average

After a stumble in the market that brought EDU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -23.16% of loss for the given period.

Volatility was left at 3.38%, however, over the last 30 days, the volatility rate increased by 3.20%, as shares surge +5.21% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.82% lower at present.

During the last 5 trading sessions, EDU rose by +1.09%, which changed the moving average for the period of 200-days by +30.54% in comparison to the 20-day moving average, which settled at $76.99. In addition, New Oriental Education & Technology Group Inc. ADR saw 2.97% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for EDU

Current profitability levels for the company are sitting at:

  • 0.1 for the present operating margin
  • 0.53 for the gross margin

The net margin for New Oriental Education & Technology Group Inc. ADR stands at 0.08. The total capital return value is set at 0.09. Equity return is now at value 8.20, with 4.67 for asset returns.

Based on New Oriental Education & Technology Group Inc. ADR (EDU), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 6.06.

Currently, EBITDA for the company is 190.91 million with net debt to EBITDA at -4.13. When we switch over and look at the enterprise to sales, we see a ratio of 2.71. The receivables turnover for the company is 100.86for trailing twelve months and the total asset turnover is 0.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.95.

Conclusion

In conclusion, New Oriental Education & Technology Group Inc. ADR (EDU) has seen better performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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