New Oriental Z Score

EDU -  USA Stock  

USD 2.17  0.04  1.81%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to New Oriental Piotroski F Score and New Oriental Valuation analysis.

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New Oriental Invested Capital is comparatively stable at the moment as compared to the past year. New Oriental reported Invested Capital of 5.34 Billion in 2020. Invested Capital Average is likely to gain to about 5.3 B in 2021, whereas Capital Expenditure is likely to drop (263.3 M) in 2021. New Oriental Weighted Average Shares Diluted is comparatively stable at the moment as compared to the past year. New Oriental reported Weighted Average Shares Diluted of 1.82 Billion in 2020. Income Tax Expense is likely to gain to about 166.7 M in 2021, whereas Net Income Common Stock is likely to drop slightly above 379.1 M in 2021.

New Oriental Z Score Analysis

New Oriental's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current New Oriental Z Score

    
  1.6  
Most of New Oriental's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, New Oriental Education is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

New Oriental Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for New Oriental is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since New Oriental's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of New Oriental's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of New Oriental's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

According to the company's disclosures, New Oriental Education has a Z Score of 1.6. This is 82.34% lower than that of the Consumer Defensive sector and 85.48% lower than that of the Education & Training Services industry. The z score for all United States stocks is 81.65% higher than that of the company.

New Oriental Current Valuation Drivers

We derive many important indicators used in calculating different scores of New Oriental from analyzing New Oriental's financial statements. These drivers represent accounts that assess New Oriental's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of New Oriental's important valuation drivers and their relationship over time.
201620172018201920202021 (projected)
Average Assets2.67 B3.54 B4.21 B6.44 B7.41 B7.99 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA380.36 M434.46 M439.13 M703.16 M808.64 M872.48 M
Earnings Before Interest Taxes and Depreciation Amortization USD380.36 M434.46 M439.13 M703.16 M808.64 M872.48 M
Earnings before Tax325.08 M355.54 M323.78 M547.7 M629.85 M679.57 M
Average Equity1.58 B1.92 B2.1 B2.65 B3.04 B3.28 B
Enterprise Value10.75 B14.96 B12.77 B19.42 B22.34 B24.1 B
Free Cash Flow519.76 M571.33 M546.01 M519.38 M597.29 M536.89 M
Invested Capital1.06 B1.2 B1.22 B4.65 B5.34 B5.76 B
Invested Capital Average1.02 B1.13 B1.32 B4.28 B4.92 B5.31 B
Market Capitalization11.28 B15.69 B13.56 B18.94 B21.78 B23.5 B
Tangible Asset Value2.9 B3.93 B4.55 B6.46 B7.43 B8.02 B
Working Capital1.12 B1.19 B1.46 B1.28 B1.47 B1.28 B

New Oriental Fundamentals

About New Oriental Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze New Oriental Education's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of New Oriental using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of New Oriental Education based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
New Oriental Education Technology Group Inc. provides private educational services under the New Oriental brand in the Peoples Republic of China. The company was founded in 1993 and is headquartered in Beijing, the Peoples Republic of China. New Oriental operates under Education Training Services classification in the United States and is traded on New York Stock Exchange. It employs 69438 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in New Oriental without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with New Oriental

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if New Oriental position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in New Oriental will appreciate offsetting losses from the drop in the long position's value.

New Oriental Pair Correlation

Equities Pair Trading Analysis

Continue to New Oriental Piotroski F Score and New Oriental Valuation analysis. 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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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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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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.