# New Oriental Education & Technology (EDU.US)

Canonical: https://gigainvestors.com/s/EDU

Analysis as of: 2026-10-16T07:28:10.920Z. Financial observations: FY2003–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $60.35 per share; close as of 2026-10-15.

Estimated value: low $35.54 per share, central $50.46 per share, high $59.26 per share. Buy at or below the central value $50.46 per share. Valuation as of 2026-10-16T07:28:10.920Z; scenarios are not confidence intervals.

Expected annual return: 8.9% at the stated quote. About 8.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 2.43×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.11×

- FY2019: 0.10×

- FY2020: 0.11×

- FY2021: 0.03×

- FY2022: -0.32×

- FY2023: 0.06×

- FY2024: 0.08×

- FY2025: 0.09×

- FY2026: 0.11×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.4%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 55.0%

- Recent gross margin (lower of latest and 3-year median): 54.6%

- Years with nonpositive capital: 7

- Capital spending / revenue: 6.2%

- ROIC including acquisitions, ten-year median: 40.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 11.2%

- FY2018: 10.6%

- FY2019: 9.0%

- FY2020: 40.5%

- FY2021: 11.6%

- FY2022: -625.2%

- FY2023: 3.7%

- FY2024: 5.9%

- FY2025: 6.9%

- FY2026: 9.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.16×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $172M

- Net income, five-year total: $149M

- Return on incremental invested capital: 27.8%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.6 pp

- Working capital / revenue, final three-year average: 2.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.96×

- FY2023: 0.89×

- FY2024: 1.00×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 10.6% vs 6.9%

- Per-share earnings: 1.73 to 2.32 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: -1.5%

- Market cap gain: -$106B

- Cumulative retained earnings: $858M

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: -1.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 3.7%

- Per-share value change: $0.59

- Per-share value, starting three-year median: $1.73

- Per-share value, ending three-year median: $2.32

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 1.3%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $137M

- Cumulative net income, 10 years: $1.7B

- ROIC, first three-year median: 10.6%

- ROIC, last three-year median: 6.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.73

- FY2018: $1.86

- FY2019: $1.49

- FY2020: $2.55

- FY2021: $1.96

- FY2022: -$6.99

- FY2023: $1.06

- FY2024: $1.87

- FY2025: $2.32

- FY2026: $3.01

### accounting: pass

- Sloan accruals: -6.3%

- Receivables to sales index (DSRI): 0.20×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.15×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -11.7%

- FY2018: -12.2%

- FY2019: -12.2%

- FY2020: -6.0%

- FY2021: -7.8%

- FY2022: 1.5%

- FY2023: -12.4%

- FY2024: -10.8%

- FY2025: -6.7%

- FY2026: -6.3%

## Holders

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 35% since Feb 2024 · sales +15.9%

Story as of 2026-10-16T09:58:40.468Z; price observation 2026-10-15.

Price needs cash profits to grow 8.6% a year for ten years

### Sales · FY2025–2026

sales +15.9%; source https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm; observed 2026-09-22.

- FY2017: $1.8B 

- FY2018: $2.4B 

- FY2019: $3.1B 

- FY2020: $3.6B 

- FY2021: $4.3B 

- FY2022: $3.1B 

- FY2023: $3.0B 

- FY2024: $4.3B 

- FY2025: $4.9B 

- FY2026: $5.7B 

### Gross margin · FY2026

gross margin 54.6%; source https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm; observed 2026-09-22.

- FY2017: 58.3% 

- FY2018: 56.5% 

- FY2019: 55.6% 

- FY2020: 55.6% 

- FY2021: 52.4% 

- FY2022: 43.5% 

- FY2023: 53.0% 

- FY2024: 52.5% 

- FY2025: 55.4% 

- FY2026: 54.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in education & training services; annual sales are USD 5.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm (filed 2026-09-22); FY2026: revenue 5681500817; grossProfit 3104167276; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EDU.US: New Oriental Education & Technology Group Inc. through its subsidiaries, provides educational and value-added telecommunication services in the People's Republic of China. It operates through four segments: Educational Services and Test Preparation Courses; Private Label Products and Livestreaming E-Commerce; Overseas Study Consulting Services; and Educational Materials and Distribution. The company offers test preparation courses to students taking language and entrance exams used by educational institutions. It 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, the company develops and edits educational materials for language training and test preparation; online education services through the Koolearn.com platform; sells private label products; and engages in livestreaming e-commerce business. Further, it offers educational programs, services, and products to students through schools, learning centers, and bookstores, as well as through its online learning platforms. It distributes its educational materials through various distribution channels, including bookstores and third-party distributors. New Oriental Education & Technology Group Inc. was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

### Why customers stay

Margins ranged from 52.5% to 55.4% during 2024–26; it earns 9.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2024: grossProfit / revenue = 52.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2025: grossProfit / revenue = 55.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm (filed 2026-09-22); FY2026: grossProfit / revenue = 54.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); 10-year return on capital observations [[2017,0.11242285990611096],[2018,0.10569653912087022],[2019,0.09035451655267895],[2020,0.40487115178449196],[2021,0.11601833203103927],[2022,-6.251643242024211],[2023,0.03652339682903024],[2024,0.059041737365431265],[2025,0.06902899422048489],[2026,0.09677713803103109]]; median 0.09356582729185503. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 14.3% of cash earnings on expansion; earns 27.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2017: growth capex 50347000; upkeep 55389000; owner earnings 274457000. Growth capex / owner earnings = 0.1834422149917838.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2018: growth capex 114700937.5572653; upkeep 104911062.4427347; owner earnings 270248937.5572653. Growth capex / owner earnings = 0.42442696942318364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2019: growth capex 111522022.14968807; upkeep 165355977.85031193; owner earnings 186713022.14968807. Growth capex / owner earnings = 0.5972910773212203.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2020: growth capex 121481208.34475023; upkeep 188066791.65524977; owner earnings 376268208.3447502. Growth capex / owner earnings = 0.3228580189624866.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2021: growth capex 210691000; upkeep 225657000; owner earnings 334414000. Growth capex / owner earnings = 0.6300304413092753.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2023: growth capex 0; upkeep 143045000; owner earnings 156999000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2024: growth capex 176568000; upkeep 106820000; owner earnings 309591000. Growth capex / owner earnings = 0.5703266567826584.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); FY2025: growth capex 113323000; upkeep 145888000; owner earnings 372440000. Growth capex / owner earnings = 0.3042718290194394.

- Source: https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm (filed 2026-09-22); FY2026: growth capex 68178000; upkeep 178729000; owner earnings 476868028. Growth capex / owner earnings = 0.14297037334614515.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); Incremental return on capital 0.2775827769256842, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); Dividend observations: [[2017,0],[2018,71153000],[2019,96457000],[2020,10259000],[2021,19659000],[2022,7781000],[2023,12878000],[2024,0],[2025,98197000],[2026,96361000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm (filed 2026-09-22); FY2026: cash repurchases 230890000 USD.

### Are managers owners

Insiders own 2.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EDU.US SharesStats.PercentInsiders = 2.254 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.6% yearly over ten years; actual growth was 7.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-22); Ten-year compound average after fade. Initial solved rate 0.11039755673068019. Price 60.35; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.4245245968099527 → FY2026 3.013106076785333. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $501.30 per share

- 2016-11: $501.70 per share

- 2016-12: $421.00 per share

- 2017-01: $475.50 per share

- 2017-02: $484.10 per share

- 2017-03: $603.80 per share

- 2017-04: $645.40 per share

- 2017-05: $716.70 per share

- 2017-06: $704.90 per share

- 2017-07: $796.60 per share

- 2017-08: $817.50 per share

- 2017-09: $882.60 per share

- 2017-10: $832.40 per share

- 2017-11: $848.60 per share

- 2017-12: $940.00 per share

- 2018-01: $920.90 per share

- 2018-02: $913.90 per share

- 2018-03: $876.50 per share

- 2018-04: $898.40 per share

- 2018-05: $994.70 per share

- 2018-06: $946.60 per share

- 2018-07: $860.40 per share

- 2018-08: $786.00 per share

- 2018-09: $740.10 per share

- 2018-10: $585.10 per share

- 2018-11: $571.60 per share

- 2018-12: $548.10 per share

- 2019-01: $770.40 per share

- 2019-02: $820.60 per share

- 2019-03: $900.90 per share

- 2019-04: $954.60 per share

- 2019-05: $856.50 per share

- 2019-06: $965.80 per share

- 2019-07: $1,043.10 per share

- 2019-08: $1,134.00 per share

- 2019-09: $1,107.60 per share

- 2019-10: $1,220.60 per share

- 2019-11: $1,210.80 per share

- 2019-12: $1,212.50 per share

- 2020-01: $1,215.50 per share

- 2020-02: $1,278.90 per share

- 2020-03: $1,082.40 per share

- 2020-04: $1,276.60 per share

- 2020-05: $1,199.60 per share

- 2020-06: $1,302.30 per share

- 2020-07: $1,402.00 per share

- 2020-08: $1,466.30 per share

- 2020-09: $1,495.00 per share

- 2020-10: $1,603.80 per share

- 2020-11: $1,648.50 per share

- 2020-12: $1,858.10 per share

- 2021-01: $1,675.00 per share

- 2021-02: $1,776.20 per share

- 2021-03: $140.00 per share

- 2021-04: $152.60 per share

- 2021-05: $102.30 per share

- 2021-06: $81.90 per share

- 2021-07: $21.70 per share

- 2021-08: $22.60 per share

- 2021-09: $20.50 per share

- 2021-10: $20.50 per share

- 2021-11: $22.10 per share

- 2021-12: $21.00 per share

- 2022-01: $14.30 per share

- 2022-02: $15.10 per share

- 2022-03: $11.50 per share

- 2022-04: $12.55 per share

- 2022-05: $13.06 per share

- 2022-06: $20.36 per share

- 2022-07: $27.41 per share

- 2022-08: $28.40 per share

- 2022-09: $23.97 per share

- 2022-10: $23.74 per share

- 2022-11: $28.74 per share

- 2022-12: $34.82 per share

- 2023-01: $42.64 per share

- 2023-02: $38.72 per share

- 2023-03: $38.61 per share

- 2023-04: $45.59 per share

- 2023-05: $37.67 per share

- 2023-06: $39.49 per share

- 2023-07: $56.13 per share

- 2023-08: $54.24 per share

- 2023-09: $58.55 per share

- 2023-10: $65.49 per share

- 2023-11: $81.38 per share

- 2023-12: $73.28 per share

- 2024-01: $76.66 per share

- 2024-02: $93.53 per share

- 2024-03: $86.82 per share

- 2024-04: $77.10 per share

- 2024-05: $79.93 per share

- 2024-06: $77.73 per share

- 2024-07: $62.82 per share

- 2024-08: $61.48 per share

- 2024-09: $75.84 per share

- 2024-10: $62.60 per share

- 2024-11: $58.32 per share

- 2024-12: $64.18 per share

- 2025-01: $48.76 per share

- 2025-02: $48.08 per share

- 2025-03: $47.81 per share

- 2025-04: $48.85 per share

- 2025-05: $47.36 per share

- 2025-06: $53.95 per share

- 2025-07: $44.11 per share

- 2025-08: $47.98 per share

- 2025-09: $53.07 per share

- 2025-10: $59.57 per share

- 2025-11: $51.14 per share

- 2025-12: $55.03 per share

- 2026-01: $60.38 per share

- 2026-02: $54.65 per share

- 2026-03: $56.63 per share

- 2026-04: $54.69 per share

- 2026-05: $45.79 per share

- 2026-06: $45.91 per share

- 2026-07: $58.89 per share

- 2026-08: $57.70 per share

- 2026-09: $55.49 per share

- 2026-10: $58.44 per share

## Annual estimated value (USD per share)

- FY2017: low $19.69 per share, central $23.33 per share, high $27.16 per share

- FY2018: low $31.91 per share, central $45.58 per share, high $53.55 per share

- FY2019: low $40.18 per share, central $57.40 per share, high $67.42 per share

- FY2020: low $33.18 per share, central $47.39 per share, high $55.67 per share

- FY2021: low $28.86 per share, central $32.84 per share, high $38.14 per share

- FY2022: low $15.62 per share, central $17.77 per share, high $20.64 per share

- FY2023: low $11.83 per share, central $13.46 per share, high $15.64 per share

- FY2024: low $21.88 per share, central $26.81 per share, high $31.26 per share

- FY2025: low $28.76 per share, central $39.62 per share, high $46.46 per share

- FY2026: low $34.82 per share, central $49.43 per share, high $58.05 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1372920/000119312526397192/d157159d20f.htm); period 2026-05-31, filed 2026-09-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.