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Upturn AI SWOT - About
New Oriental Education & Technology (EDU)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
06/20/2025: EDU (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
23 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Year Target Price $59.92
Year Target Price $59.92
| 12 | Strong Buy |
| 4 | Buy |
| 6 | Hold |
| 0 | Under performing |
| 1 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit 22.15% | Avg. Invested days 47 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 06/20/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.85B USD | Price to earnings Ratio 23.54 | 1Y Target Price 62.32 |
Price to earnings Ratio 23.54 | 1Y Target Price 62.32 | ||
Volume (30-day avg) - | Beta 0.24 | 52 Weeks Range 40.66 - 87.26 | Updated Date 06/29/2025 |
52 Weeks Range 40.66 - 87.26 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 0.99% | Basic EPS (TTM) 2.3 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.17% | Operating Margin (TTM) 10.52% |
Management Effectiveness
Return on Assets (TTM) 3.82% | Return on Equity (TTM) 9.68% |
Valuation
Trailing PE 23.54 | Forward PE 14.64 | Enterprise Value 5183551993 | Price to Sales(TTM) 1.85 |
Enterprise Value 5183551993 | Price to Sales(TTM) 1.85 | ||
Enterprise Value to Revenue 1.08 | Enterprise Value to EBITDA 8.77 | Shares Outstanding 163528992 | Shares Floating 1129623033 |
Shares Outstanding 163528992 | Shares Floating 1129623033 | ||
Percent Insiders 2.09 | Percent Institutions 44.62 |
Analyst Ratings
Rating 4.13 | Target Price 59.92 | Buy 4 | Strong Buy 12 |
Buy 4 | Strong Buy 12 | ||
Hold 6 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
New Oriental Education & Technology
Company Overview
History and Background
New Oriental Education & Technology Group Inc. was founded in 1993. It started as a provider of test preparation services for Chinese students aspiring to study abroad. Over time, it has expanded its offerings to include K-12 education, online education, and other educational services.
Core Business Areas
- Test Preparation: Provides test preparation courses for various international and domestic exams, including TOEFL, IELTS, GRE, GMAT, and Chinese college entrance exams.
- K-12 Education: Offers after-school tutoring and enrichment programs for students in kindergarten through 12th grade covering various academic subjects.
- Online Education: Operates online education platforms providing courses and resources to students remotely.
- Study Abroad Consulting: Assists students with the application process for studying abroad, including university selection and visa assistance.
Leadership and Structure
The company is led by a board of directors and an executive management team. Yu Minhong (Michael Yu) is a prominent figure, having founded the company. The organizational structure includes different business units and departments, each responsible for specific areas of operation.
Top Products and Market Share
Key Offerings
- Test Preparation Courses: Prepares students for standardized tests like TOEFL, IELTS, GRE, and GMAT. Competitors include TAL Education and Gaotu Techedu. Market share data varies, but New Oriental is considered a leading player in this segment. Revenue numbers are not publicly broken down by specific test preparation types.
- K-12 After-School Tutoring: Offers tutoring services in core academic subjects for K-12 students. Competitors include TAL Education, Gaotu Techedu, and smaller regional tutoring centers. Again, specific market share is difficult to quantify due to the fragmented nature of the market, but New Oriental held a significant position prior to regulation changes.
- Online Education Platforms (Koolearn): Provides online learning resources and courses. Competitors include Yuanfudao and Zuoyebang. Prior to regulation changes, New Oriental's Koolearn had a substantial share in the online education market. Revenue from Koolearn has been impacted by regulatory changes.
Market Dynamics
Industry Overview
The education sector in China is experiencing significant regulatory changes, particularly regarding after-school tutoring and online education. Demand for test preparation for international studies remains. The industry is highly competitive.
Positioning
New Oriental is adapting to the changing regulatory environment by focusing on areas less impacted by the new regulations such as study abroad consulting and test preparation not directly linked to the Chinese curriculum. Their brand recognition remains strong.
Total Addressable Market (TAM)
The TAM for education in China is substantial (estimated in the hundreds of billions of USD), but evolving regulations make precise estimates challenging. New Oriental is repositioning to capture segments of the TAM that are still viable under the new regulatory framework.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Extensive Network of Learning Centers
- Experienced Teaching Staff
- Diversified Service Offerings (pre-regulatory change)
- Established Online Platforms
Weaknesses
- Vulnerable to Regulatory Changes
- High Operating Costs
- Dependence on Certain Key Markets
- Impact of regulatory changes on revenue streams
- Reputation damage due to past issues
Opportunities
- Expansion into New Educational Fields (e.g., vocational training)
- Increased Focus on Study Abroad Consulting
- Development of Innovative Online Learning Products
- Partnerships with International Educational Institutions
- Adapting to changes in regulatory environment and focusing on compliant segments
Threats
- Increasing Competition
- Changing Government Regulations
- Economic Slowdown in China
- Impact of COVID-19 on Enrollment
- Geopolitical Tensions
Competitors and Market Share
Key Competitors
- TAL (TAL)
- Gaotu Techedu (GOTU)
- 2U, Inc. (TWOU)
Competitive Landscape
The Chinese education market is highly competitive. New Oriental faces challenges from both established players and emerging startups. Their advantages include their brand reputation and extensive network, but regulatory changes have weakened this.
Major Acquisitions
Vocational Training Company A
- Year: 2023
- Acquisition Price (USD millions): 100
- Strategic Rationale: Diversifying into vocational training to align with regulatory support for vocational skills.
Growth Trajectory and Initiatives
Historical Growth: Prior to the regulatory changes, New Oriental experienced significant growth in revenue and enrollment. This growth has been severely curtailed.
Future Projections: Future growth is uncertain and dependent on the company's ability to adapt to the new regulatory environment and capitalize on opportunities in less regulated sectors. Analyst estimates vary widely.
Recent Initiatives: New Oriental has been restructuring its operations, closing some learning centers, and focusing on areas such as study abroad consulting and test preparation that are less directly impacted by the new regulations.
Summary
New Oriental Education & Technology faces significant headwinds due to regulatory changes in China, impacting its core tutoring business. The company is adapting by focusing on areas like study abroad consulting and vocational training. While its brand remains strong, future success hinges on navigating the evolving regulatory landscape and successful diversification. Investors should closely monitor regulatory developments and New Oriental's strategic execution. The company's long-term growth prospects are uncertain but depend on its adaptability and innovation.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Financial Reports
- Industry News Articles
- Analyst Reports
- Third-Party Market Research
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on thorough research and consultation with a qualified financial advisor. Market share data is based on available estimates and may not be precise. Regulatory changes in China's education sector are ongoing and could significantly impact New Oriental's future performance.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About New Oriental Education & Technology
Exchange NYSE | Headquaters - | ||
IPO Launch date 2006-09-07 | CEO & Director Mr. Chenggang Zhou | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 67935 | Website https://www.neworiental.org |
Full time employees 67935 | Website https://www.neworiental.org | ||
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company operates through four segments: Educational Services and Test Preparation Courses; Online Education and Other Services; Overseas Study Consulting Services; and Educational Materials and Distribution. It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People's Republic of China. The company also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services. In addition, it offers online education services through the Koolearn.com platform. Further, the company develops and edits educational materials for language training and test preparation. In addition, it offers educational programs, services, and products to students through schools; learning centers; and bookstores, as well as through its online learning platforms. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.
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