# 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.

## Reported holder observations

- [Mason Hawkins](https://gigainvestors.com/SE): 411,598 EDU shares; USD 18,896,000 reported position value; 0.99% of portfolio; reduce; quarter 2026 Q2.

# EDU — New Oriental Education & Technology

Held by 1 investor · USD 18,896,000 total · 2026 Q2 · reported price USD 45.91 (split-adjusted).
Page: https://gigainvestors.com/s/EDU

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Mason Hawkins (https://gigainvestors.com/SE) | USD 18,896,000 | 1.0% | reduce -21.19% |

## Total held by quarter

- 2012 Q3: USD 370,074 · 1 holder · USD 16.67
- 2012 Q4: USD 430,902 · 1 holder · USD 19.41
- 2013 Q1: USD 398,934 · 1 holder · USD 17.97
- 2013 Q2: USD 245,976 · 1 holder · USD 22.16
- 2013 Q3: USD 275,946 · 1 holder · USD 24.86
- 2013 Q4: USD 349,983 · 1 holder · USD 31.53
- 2014 Q1: USD 326,007 · 1 holder · USD 29.37
- 2014 Q2: USD 295,038 · 1 holder · USD 26.58
- 2014 Q3: USD 256,965 · 1 holder · USD 23.15
- 2014 Q4: USD 226,995 · 1 holder · USD 20.45
- 2015 Q1: USD 245,976 · 1 holder · USD 22.16
- 2015 Q2: USD 271,950 · 1 holder · USD 24.50
- 2015 Q3: USD 223,998 · 1 holder · USD 20.18
- 2015 Q4: USD 347,985 · 1 holder · USD 31.35
- 2016 Q1: USD 383,949 · 1 holder · USD 34.59
- 2016 Q2: USD 464,979 · 1 holder · USD 41.89
- 2016 Q3: USD 514,041 · 1 holder · USD 46.31
- 2016 Q4: USD 466,977 · 1 holder · USD 42.07
- 2017 Q1: USD 669,996 · 1 holder · USD 60.36
- 2017 Q2: USD 352,000 · 1 holder · USD 70.40
- 2017 Q3: USD 442,000 · 1 holder · USD 88.40
- 2017 Q4: USD 0 · 0 holders
- 2018 Q1: USD 0 · 0 holders
- 2018 Q2: USD 0 · 0 holders
- 2018 Q3: USD 0 · 0 holders
- 2018 Q4: USD 129,000,816 · 1 holder · USD 54.81
- 2019 Q1: USD 212,035,824 · 1 holder · USD 90.09
- 2019 Q2: USD 227,310,688 · 1 holder · USD 96.58
- 2019 Q3: USD 260,684,736 · 1 holder · USD 110.76
- 2019 Q4: USD 174,701,971 · 1 holder · USD 121.25
- 2020 Q1: USD 231,795,960 · 1 holder · USD 108.24
- 2020 Q2: USD 278,887,545 · 1 holder · USD 130.23
- 2020 Q3: USD 320,154,250 · 1 holder · USD 149.50
- 2020 Q4: USD 342,540,735 · 1 holder · USD 185.81
- 2021 Q1: USD 258,090,000 · 1 holder · USD 140.00
- 2021 Q2: USD 75,491,325 · 1 holder · USD 81.90
- 2021 Q3: USD 18,936,875 · 2 holders · USD 20.50
- 2021 Q4: USD 19,398,750 · 2 holders · USD 21.00
- 2022 Q1: USD 11,000 · 1 holder · USD 11.00
- 2022 Q2: USD 162,880,000 · 1 holder · USD 20.36
- 2022 Q3: USD 184,226,373 · 1 holder · USD 23.97
- 2022 Q4: USD 201,744,573 · 1 holder · USD 34.82
- 2023 Q1: USD 209,219,250 · 1 holder · USD 38.61
- 2023 Q2: USD 162,650,780 · 1 holder · USD 39.49
- 2023 Q3: USD 59,912,576 · 1 holder · USD 58.55
- 2023 Q4: USD 0 · 0 holders
- 2024 Q1: USD 0 · 0 holders
- 2024 Q2: USD 0 · 0 holders
- 2024 Q3: USD 0 · 0 holders
- 2024 Q4: USD 0 · 0 holders
- 2025 Q1: USD 0 · 0 holders
- 2025 Q2: USD 0 · 0 holders
- 2025 Q3: USD 0 · 0 holders
- 2025 Q4: USD 20,887,242 · 1 holder · USD 55.03
- 2026 Q1: USD 29,576,716 · 1 holder · USD 56.63
- 2026 Q2: USD 18,896,000 · 1 holder · USD 45.91