We use cookies to analyze site traffic and improve your experience.
By accepting, you consent to the use of analytics cookies.

EDU:NYSENew Oriental Education & Technology Group, Inc. Sponsored Analysis

Data as of 2026-06-24 - not real-time

$45.04

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

The stock is trading well below its 20‑day, 50‑day and 200‑day moving averages, signaling a bearish price trend, while the RSI sits in the mid‑30s indicating oversold conditions. The MACD line has crossed above its signal line, offering a modest bullish hint, but both remain in negative territory and volume is on a downtrend, contributing to a 30‑day volatility above 25%.
Fundamentally, New Oriental posted a 19.8% revenue jump, maintains healthy gross and operating margins, and holds a cash pile of roughly $4.8 B against less than $1 B of debt. The dividend yield of 2.66% is backed by a modest 22% payout ratio, and a discounted cash‑flow model values the company at about $133, implying more than 50% upside from the current $45 price. Analyst consensus is “buy” and the Fear & Greed index sits at “Extreme Greed,” underscoring market optimism.
Implication: While short‑term price pressure and regulatory scrutiny in China add risk, the combination of strong cash generation, attractive valuation gap and dividend sustainability points to a compelling upside story for medium to long‑term investors.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 5/10

Key Factors

  • Price hovering near technical support
  • RSI indicating oversold condition
  • Decreasing trading volume and high volatility

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Strong revenue growth and cash generation
  • DCF valuation suggesting >50% upside
  • Sustainable dividend yield

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Robust balance sheet with low leverage
  • Continued demand for education services in China
  • Long‑run valuation gap and dividend stability

Key Metrics & Analysis

Financial Health

Revenue Growth19.80%
Profit Margin7.82%
P/E Ratio16.7
ROE10.84%
ROA4.85%
Debt/Equity18.27
P/B Ratio1.7
Op. Cash Flow$907.5M
Free Cash Flow$617.3M

Technical Analysis

TrendBearish
RSI36.6
Support$44.55
Resistance$48.64
MA 20$46.08
MA 50$50.53
MA 200$54.30
MACDBullish
VolumeDecreasing
Fear & Greed Index87.11

Valuation

Fair Value$133.23
Target Price$70.61
Upside/Downside56.77%
GradeUndervalued
TypeGrowth
Dividend Yield2.66%

Risk Assessment

Beta0.59
Volatility26.27%
Sector RiskMedium
Reg. RiskHigh
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.