New Oriental Stock Buy Hold or Sell Recommendation

EDU -  USA Stock  

USD 12.43  0.12  0.96%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding New Oriental Education is 'Strong Hold'. 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 Hold

Volatility

Relatively riskyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Actively responds to 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 Risk Adjusted Performance of (0.026686), Jensen Alpha of 0.0888, Total Risk Alpha of 0.6895 and Treynor Ratio of (0.12)
Our investment recommendation tool can cross-verify current analyst consensus on New Oriental Education and to analyze the entity potential to grow in the current economic cycle. 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 . Given that New Oriental Education has a price to earning of 55.40 X, we recommend you to check New Oriental market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

New Oriental Trading Alerts and Improvement Suggestions

New Oriental generated a 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
About 66.0% of the company shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: What Kind Of Shareholders Hold The Majority In New Oriental Education Technology Group Inc.s Shares - Yahoo Finance

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.
Recommendation Mean2.00
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-0.18Value At Risk-9.56
Potential Upside12.26Standard Deviation6.86
 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

201720182019202020212022 (projected)
Capital Expenditure(209.8 M)(259.64 M)(285.07 M)(390.96 M)(351.86 M)(361.12 M)
Depreciation Amortization and Accretion78.92 M113.74 M150.84 M230.18 M264.71 M285.61 M
Net Cash Flow or Change in Cash and Cash Equivalents342.1 M431.46 M(498.8 M)712.7 M819.61 M884.31 M
Net Cash Flow Business Acquisitions and Disposals(999 K)(61.63 M)7.53 M4.53 M4.07 M4.4 M
Issuance Purchase of Equity Shares1,000177.38 M3.63 M1.48 B1.71 B1.84 B
Net Cash Flow from Financing(74.88 M)266.65 M(17.86 M)1.65 B1.9 B2.05 B
Net Cash Flow from Investing(407.14 M)(574.71 M)(1.26 B)(2.18 B)(1.96 B)(2.01 B)
Net Cash Flow Investment Acquisitions and Disposals(196.34 M)(253.44 M)(978.83 M)(1.79 B)(1.61 B)(1.65 B)
Net Cash Flow from Operations781.13 M805.65 M804.46 M1.13 B1.3 B1.4 B
Effect of Exchange Rate Changes on Cash42.99 M(66.12 M)(29.03 M)106.17 M122.1 M131.74 M
Share Based Compensation57.44 M71.34 M62.06 M68.88 M79.21 M62.69 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
0.09
β
Beta against DOW1.60
σ
Overall volatility
7.01
Ir
Information ratio -0.0022

New Oriental Volatility Alert

New Oriental Education is displaying above-average volatility over the selected time horizon. Investors should scrutinize New Oriental Education independently to ensure intended market timing strategies are aligned with expectations about New Oriental volatility. 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 Implied Volatility

New Oriental's implied volatility exposes the market's sentiment of New Oriental Education stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if New Oriental's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that New Oriental stock will not fluctuate a lot when New Oriental's options are near their expiration.

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 Equity5.83 %(0.31) %
Return On Asset1.11 %(0.14) %
Profit Margin7.82 %(1.27) %
Operating Margin3.49 %(5.51) %
Current Valuation(1.41 B)16.62 B
Shares Outstanding1.7 B571.82 M
Shares Owned by Insiders1.91 %10.09 %
Shares Owned by Institutions65.80 %39.21 %
Number of Shares Shorted136.23 M4.71 M
Price to Earning55.40 X28.72 X
Price to Book3.81 X9.51 X
Price to Sales4.48 X11.42 X
Revenue4.28 B9.43 B
Gross Profit2.24 B27.38 B
EBITDA379.5 M3.9 B
Net Income334.41 M570.98 M
Cash and Equivalents6.26 B2.7 B
Cash per Share3.69 X5.01 X
Total Debt2.16 B5.32 B
Debt to Equity0.43 %48.70 %
Current Ratio1.89 X2.16 X
Book Value Per Share2.91 X1.93 K
Cash Flow from Operations1.13 B971.22 M
Short Ratio5.79 X4.00 X
Earnings Per Share0.20 X3.12 X
Price to Earnings To Growth0.56 X4.89 X
Number of Employees88.13 K18.84 K
Beta1.0-0.15
Market Capitalization19.16 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

New Oriental Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as New Oriental . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution66878.44
Daily Balance Of Power(0.24)
Rate Of Daily Change0.99
Day Median Price12.68
Day Typical Price12.59
Price Action Indicator(0.31)

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.
 2019 2020 2021 2022 (projected)
Current Assets3.76 B6.57 B7.56 B8.16 B
Total Assets6.56 B10.15 B11.67 B12.6 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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Run Books Thematic Idea Now

Books
Books Theme
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 30 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Books Theme or any other thematic opportunities.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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When running New Oriental Education price analysis, check to measure New Oriental's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy New Oriental is operating at the current time. Most of New Oriental's value examination focuses on studying past and present price action to predict the probability of New Oriental's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move New Oriental's price. Additionally, you may evaluate how the addition of New Oriental to your portfolios can decrease your overall portfolio volatility.
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Is New Oriental's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of New Oriental. If investors know New Oriental will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about New Oriental listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
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's underlying business (such as a 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.