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New Oriental Education & Technology(EDU)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 71 days
PROFIT SINCE LAST BUY
+18.72% ▲
LAST CLOSE
$58.35
10/26/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • SELL Advisory (Loss)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

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 styleFitWhy
Growth investorMixed fitGrowth is being driven by new ventures, but legacy segments face significant regulatory constraints.
Momentum investorStrong fit while signal remains positiveThe stock often reacts strongly to regulatory updates and positive pivots in e-commerce monetization.
Value investorMixed fitThe valuation depends heavily on the long-term sustainability of the new non-education business models.
Dividend investorWeak fitThe company lacks a consistent, predictable dividend payout history.
Low-risk investorWeak fitSignificant regulatory and geopolitical risks inherent in Chinese ADRs make this unsuitable for low-risk profiles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is highly sensitive to shifts in Chinese regulatory policy and market sentiment.
Valuation riskMedium / highValuation fluctuates based on the success of the e-commerce segment relative to legacy education.
Competition risk (e-commerce)HighCompeting with major Chinese tech platforms requires significant ongoing investment and marketing spend.
Business qualityMediumWhile the brand is strong, the business model is still evolving after a major disruption.
Dividend incomeLowInvestors should not rely on the stock for regular income.
Execution riskMedium / highSuccessfully managing a dual-focus model (education + e-commerce) remains a complex operational challenge.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

Moderately Choppy
PRICE STABILITY

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 star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/26/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
EDU receives a 4-star rating, supported by solid unit economics, solid company fundamentals, and strong analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
EDU has solid overall fundamentals (4 stars), with solid financial health, solid growth momentum, and moderate ownership. In FY2026 versus FY2025, solid earnings growth (+28.0%) and strong cash generation (FCF margin 18.1%) are partially offset by soft profitability (net margin 8.4%), modest insider ownership of 2.25%.

Financial Health Rating

★★★★★
EDU's financial health is supported by strong cash strength, including free-cash-flow generation of $1.0B (18.1% of revenue). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is EDU's strongest growth driver at +61.1% FY2026 versus FY2025 (strong, 5 stars). Revenue growth (+15.9%, solid) and earnings growth (+28.0%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 34.9% (moderate) and 69.3% of outstanding shares are publicly tradable (solid). Insider ownership of 2.25% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Amvescap Plc. 3.11%
Aspex Management (HK) Ltd 2.92%
Discerene Group LP 1.99%
Renaissance Technologies Corp 1.84%
Orbis Allan Gray Ltd 1.39%

Unit Economics (Per $1K Revenue)

★★★★★
EDU generates approximately $546 of gross profit, $114 of operating income, and $181 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Solid margins and strong cash conversion support the rating, although capital efficiency remains solid.

Economic Dimensions

★★★★★
Effective Tax Rate: 27.51%

Quantitative Style Profile

★★★★★
EDU has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

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 areaWhat it includesRetail investor read
Education ServicesTest prep, overseas study consulting, and language training.The classic, stable revenue engine of the company.
Non-Academic EnrichmentArts, science, and life-skill courses for students.Regulatory-compliant growth area in domestic education.
E-commerce & LivestreamingEast Buy platform sales and promotional services.A significant, high-growth, but more volatile revenue contributor.
GeographyPrimary 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

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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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.