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.
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 yearNeutral
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 yearsPositive
Model confidence: 7/10
Key Factors
- Strong revenue growth and cash generation
- DCF valuation suggesting >50% upside
- Sustainable dividend yield
Long Term
> 3 yearsPositive
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
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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.