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Upturn AI Summary - About
New Oriental Education & Technology(EDU)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for EDU
10/26/2026: EDU (1-star) has a low Upturn Star Rating. Not recommended to BUY.
New Oriental Education & Technology is a major Chinese provider of educational services that has successfully transitioned from traditional K-12 academic tutoring to vocational training, enrichment programs, and livestream e-commerce. Its primary strength lies in its strong brand recognition and demonstrated ability to pivot operations in response to regulatory shifts. The company's main growth story currently centers on scaling its East Buy e-commerce platform and meeting demand for adult skill-based education. However, it faces substantial risks, including a challenging regulatory environment and intense competition in the digital space. The stock may suit growth-oriented investors with a high risk tolerance who are looking for exposure to the evolving Chinese consumer economy.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Growth is being driven by new ventures, but legacy segments face significant regulatory constraints. |
| Momentum investor | Strong fit while signal remains positive | The stock often reacts strongly to regulatory updates and positive pivots in e-commerce monetization. |
| Value investor | Mixed fit | The valuation depends heavily on the long-term sustainability of the new non-education business models. |
| Dividend investor | Weak fit | The company lacks a consistent, predictable dividend payout history. |
| Low-risk investor | Weak fit | Significant regulatory and geopolitical risks inherent in Chinese ADRs make this unsuitable for low-risk profiles. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is highly sensitive to shifts in Chinese regulatory policy and market sentiment. |
| Valuation risk | Medium / high | Valuation fluctuates based on the success of the e-commerce segment relative to legacy education. |
| Competition risk (e-commerce) | High | Competing with major Chinese tech platforms requires significant ongoing investment and marketing spend. |
| Business quality | Medium | While the brand is strong, the business model is still evolving after a major disruption. |
| Dividend income | Low | Investors should not rely on the stock for regular income. |
| Execution risk | Medium / high | Successfully managing a dual-focus model (education + e-commerce) remains a complex operational challenge. |
Price Behavior

Flat / Range-Bound
The stock price has been trading within a narrow range with minimal directional movement.

Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -3.83% | Avg. Invested days 37 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.05B USD | Price to earnings Ratio 19.46 | 1Y Target Price 73.62 |
Price to earnings Ratio 19.46 | 1Y Target Price 73.62 | ||
Volume (30-day avg) 664.5K shares | Beta 0.18 | 52 Weeks Range 44.25 - 64.22 | Updated Date 10/25/2026 |
52 Weeks Range 44.25 - 64.22 | Updated Date 10/25/2026 | ||
Dividends yield (FY) 2.06% | Basic EPS (TTM) 3 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Education Services | Test prep, overseas study consulting, and language training. | The classic, stable revenue engine of the company. |
| Non-Academic Enrichment | Arts, science, and life-skill courses for students. | Regulatory-compliant growth area in domestic education. |
| E-commerce & Livestreaming | East Buy platform sales and promotional services. | A significant, high-growth, but more volatile revenue contributor. |
| Geography | Primary operations are within China, with international study-abroad outreach. | Highly exposed to China's domestic economy and policy environment. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-10-28 | When Before Market | Estimate 1.73 | Actual - |
Profitability
Profit Margin 8.39% | Operating Margin (TTM) 5.61% |
Management Effectiveness
Return on Assets (TTM) 4.84% | Return on Equity (TTM) 12.48% |
Valuation
Trailing PE 19.46 | Forward PE 14.73 | Enterprise Value 4.57B | Price to Sales(TTM) 1.6 |
Enterprise Value 4.57B | Price to Sales(TTM) 1.6 | ||
Enterprise Value to Revenue 0.84 | Enterprise Value to EBITDA 7.37 | Shares Outstanding 155.03M | Shares Floating 107.45M |
Shares Outstanding 155.03M | Shares Floating 107.45M | ||
Percent Insiders 2.25 | Percent Institutions 34.9 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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