New Oriental Stock Buy Hold or Sell Recommendation

EDU -  USA Stock  

USD 2.17  0.04  1.81%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding New Oriental Education is 'Strong Sell'. Macroaxis provides New Oriental buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EDU positions. The advice algorithm takes into account all of New Oriental's available fundamental, technical, and predictive indicators you will find on this site.

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The advice is provided from New Oriental's buy-and-hold perspective. Continue to New Oriental Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as New Oriental and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards New Oriental Education.

Execute New Oriental Buy or Sell Advice

The New Oriental recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on New Oriental Education. Macroaxis does not own or have any residual interests in New Oriental Education or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute New Oriental's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell New OrientalBuy New Oriental
Strong Sell

Volatility

Very riskyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon New Oriental Education has a Mean Deviation of 2.73, Standard Deviation of 5.92 and Variance of 35.09
We provide investment recommendation to complement the last-minute expert consensus on New Oriental Education. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure New Oriental Education is not overpriced, please verify all New Oriental Education fundamentals, including its gross profit, short ratio, current liabilities, as well as the relationship between the total debt and market capitalization . Please also check out New Oriental price to earning to check your buy or sell decision is consistent with all fundamental data available and that the company can sustain itself in the current economic cycle.

New Oriental Trading Alerts and Improvement Suggestions

New Oriental generates negative expected return over the last 90 days
New Oriental has high historical volatility and very poor performance
New Oriental has a strong financial position based on the latest SEC filings
Over 87.0% of the company shares are held by institutions such as insurance companies
Latest headline from bovnews.com: Analysts see New Oriental Education Technology Group Inc. stock as an investment with a high growth outlook - BOV News

New Oriental current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. New Oriental analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. New Oriental analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price16.63
Target Median Price18.30
Target High Price23.55
Recommendation Mean1.80
Number Of Analyst Opinions28
Target Low Price8.60
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

New Oriental Returns Distribution Density

The distribution of New Oriental's historical returns is an attempt to chart the future uncertainty of New Oriental's future price movements. The chart of the probability distribution of New Oriental stock daily returns describes the distribution of returns around its average expected value. We use New Oriental Education price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of New Oriental returns is essential to provide solid investment advice for New Oriental stock.
Mean Return-0.35Value At Risk-5.23
Potential Upside5.62Standard Deviation5.92
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of New Oriental historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

New Oriental Cash Flow Accounts

201620172018201920202021 (projected)
Capital Expenditure(102.93 M)(209.8 M)(259.64 M)(285.07 M)(256.56 M)(263.32 M)
Depreciation Amortization and Accretion55.28 M78.92 M113.74 M150.84 M173.47 M187.16 M
Net Cash Flow or Change in Cash and Cash Equivalents(68.46 M)342.1 M431.46 M(498.8 M)(448.92 M)(460.74 M)
Net Cash Flow Business Acquisitions and Disposals(2.72 M)(999 K)(61.63 M)7.53 M6.78 M7.31 M
Issuance Purchase of Equity Shares542 K1,000177.38 M3.63 M4.17 M4.28 M
Net Cash Flow from Financing4.79 M(74.88 M)266.65 M(17.86 M)(20.54 M)(21.08 M)
Net Cash Flow from Investing(672.4 M)(407.14 M)(574.71 M)(1.26 B)(1.13 B)(1.16 B)
Net Cash Flow Investment Acquisitions and Disposals(566.75 M)(196.34 M)(253.44 M)(978.83 M)(880.95 M)(904.13 M)
Net Cash Flow from Operations622.69 M781.13 M805.65 M804.46 M925.12 M777.68 M
Effect of Exchange Rate Changes on Cash(23.55 M)42.99 M(66.12 M)(29.03 M)(26.12 M)(26.81 M)
Share Based Compensation20.29 M57.44 M71.34 M62.06 M71.37 M56.67 M

New Oriental Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to New Oriental or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that New Oriental stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a New Oriental stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.33
β
Beta against DOW-0.98
σ
Overall volatility
6.05
Ir
Information ratio -0.07

New Oriental Volatility Alert

New Oriental Education exhibits very low volatility with skewness of -8.29 and kurtosis of 112.42. However, we advise investors to further study New Oriental Education technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure New Oriental's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact New Oriental's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

New Oriental Fundamentals Vs Peers

Comparing New Oriental's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze New Oriental's direct or indirect competition across all of the common fundamentals between New Oriental and the related equities. This way, we can detect undervalued stocks with similar characteristics as New Oriental or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of New Oriental's fundamental indicators could also be used in its relative valuation, which is a method of valuing New Oriental by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare New Oriental to competition
FundamentalsNew OrientalPeer Average
Return On Equity7.30 %(0.31) %
Return On Asset1.75 %(0.14) %
Profit Margin10.18 %(1.27) %
Operating Margin10.58 %(5.51) %
Current Valuation9.25 B16.62 B
Shares Outstanding1.7 B571.82 M
Shares Owned by Insiders0.02 %10.09 %
Shares Owned by Institutions86.84 %39.21 %
Number of Shares Shorted56.46 M4.71 M
Price to Earning8.08 X28.72 X
Price to Book0.67 X9.51 X
Price to Sales0.90 X11.42 X
Revenue3.86 B9.43 B
Gross Profit1.99 B27.38 B
EBITDA408.63 M3.9 B
Net Income393.07 M570.98 M
Cash and Equivalents6.08 B2.7 B
Cash per Share3.60 X5.01 X
Total Debt2.02 B5.32 B
Debt to Equity0.40 %48.70 %
Current Ratio2.01 X2.16 X
Book Value Per Share2.91 X1.93 K
Cash Flow from Operations934.06 M971.22 M
Short Ratio1.96 X4.00 X
Earnings Per Share0.24 X3.12 X
Price to Earnings To Growth2.35 X4.89 X
Number of Employees69.44 K18.84 K
Beta0.94-0.15
Market Capitalization3.49 B19.03 B
Total Asset2.35 B29.47 B
Retained Earnings2.04 B9.33 B
Working Capital951.15 M1.48 B
Current Asset1.87 B9.34 B

About New Oriental Buy or Sell Advice

When is the right time to buy or sell New Oriental Education? Buying financial instruments such as New Oriental Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although New Oriental investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2018 2019 2020 2021 (projected)
Current Assets3.47 B3.76 B4.32 B4.66 B
Total Assets4.65 B6.56 B7.54 B8.14 B

Use Investing Ideas to Build Portfolios

In addition to having New Oriental in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Small Growth
Small Growth Theme
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. Small Growth theme has 40 constituents.
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Continue to New Oriental Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the New Oriental Education information on this page should be used as a complementary analysis to other New Oriental's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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The market value of New Oriental Education is measured differently than its book value, which is the value of New Oriental that is recorded on the company's balance sheet. Investors also form their own opinion of New Oriental's value that differs from its market value or its book value, called intrinsic value, which is New Oriental's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because New Oriental's market value can be influenced by many factors that don't directly affect New Oriental Education underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between New Oriental's value and its price as these two are different measures arrived at by different means. Investors typically determine New Oriental value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Oriental's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.