New Oriental Education & Technology Group Inc. (EDU) - Stock Analysis
Last updated: Jun 7, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
New Oriental Education (EDU) combines robust revenue growth, margin expansion, new AI-powered learning platforms, strong cash flow, share repurchases, and a solid technical rally with 13% price gains, providing a strong near-term growth case.
Loading chart data...
AI Analyst Overview
Loading chart data...
Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong liquidity ⢠Margin expansion ⢠Weak quarterly cash EDU looks financially stable with a cash-rich balance sheet and improving margins, but uneven quarterly cash conversion and a not-cheap valuation temper the investment case.
Price Behavior
Key Price Behavior Insights: ⢠Support stabilization ⢠Lower-high downtrend ⢠Failed rebound Support Level: $45.7â$46.3 Resistance Level: $47.2â$47.6 EDU is stabilizing near $45.7â$46.3 after a sharp selloff, but the trend remains bearish until it reclaims $47.2â$47.6 and then $50.
Sentiment & News
Key News Insights: ⢠Valuation focus ⢠Fund selling ⢠Margin transition EDU news flow is centered on valuation checks, fund selling, and investor skepticism around New Oriental's post-tutoring business-model transition.
AI Summary
EDU is no longer just a post-crackdown recovery play: strong K-12-led growth and margin expansion are being offset by weak overseas demand and uneven cash conversion, so the stock likely needs proof that quality earnings are consistently turning into cash before its ~21x multiple can re-rate.
Description
New Oriental Education & Technology Group is a Beijing-based provider of private educational services in China, offering K-12 tutoring, test preparation for domestic and international entrance and language exams, and language training across multiple foreign languages. The company also runs online learning programs, a full-time private primary and secondary school, develops instructional materials, and provides overseas study consulting and tour services; as of May 31, 2021 it operated through a network of schools, learning centers, bookstores and online platforms. Founded in 1993, New Oriental serves a broad student base through both in-person and digital channels.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Feb 3 | Feb 10 | EDU | New Oriental Education & Technology Group Inc. | New Oriental Education (EDU) combines robust revenue growth, margin expansion, new AI-powered learning platforms, strong cash flow, share repurchases, and a solid technical rally with 13% price gains, providing a strong near-term growth case. | Closed | -4.1% |