New Oriental Stock Performance

EDU -  USA Stock  

USD 10.80  1.20  10.00%

The company secures a Beta (Market Risk) of 1.4749, which conveys a somewhat significant risk relative to the market. Let's try to break down what New Oriental's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, New Oriental will likely underperform. Even though it is essential to pay attention to New Oriental Education price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. New Oriental exposes twenty-eight different technical indicators, which can help you to evaluate its performance. New Oriental Education has an expected return of -0.25%. Please be advised to verify New Oriental Education potential upside, as well as the relationship between the kurtosis and day typical price to decide if New Oriental Education performance from the past will be repeated at some point in the near future.
  
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New Oriental Performance
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Over the last 90 days New Oriental Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in June 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors. ...more

New Oriental Price Channel

Quick Ratio2.36
Fifty Two Week Low8.40
Target High Price87.00
Fifty Two Week High112.00
Target Low Price11.20

New Oriental Relative Risk vs. Return Landscape

If you would invest  1,480  in New Oriental Education on February 23, 2022 and sell it today you would lose (400.00)  from holding New Oriental Education or give up 27.03% of portfolio value over 90 days. New Oriental Education is generating negative expected returns assuming volatility of 7.0727% on return distribution over 90 days investment horizon. In other words, 61% of stocks are less volatile than New Oriental, and above 99% of all equities are expected to generate higher returns over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 90-day investment horizon New Oriental is expected to under-perform the market. In addition to that, the company is 5.14 times more volatile than its market benchmark. It trades about -0.04 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.06 per unit of volatility.

New Oriental Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for New Oriental's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as New Oriental Education, and traders can use it to determine the average amount a New Oriental's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0352

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Negative ReturnsEDU
Estimated Market Risk
 7.07
  actual daily
 
 61 %
of total potential
 
6161
Expected Return
 -0.25
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 0 %
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 -0.04
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Based on monthly moving average New Oriental is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of New Oriental by adding it to a well-diversified portfolio.

About New Oriental Performance

To evaluate New Oriental Education Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when New Oriental generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare New Oriental Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand New Oriental Education stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents New Oriental's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash122.1 M131.7 M
Return on Average Assets 0.0324  0.0333 
Return on Average Equity 0.07  0.10 
Return on Invested Capital 0.06  0.06 
Return on Sales 0.09  0.12 
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 88126 people.

Things to note about New Oriental Education

Checking the ongoing alerts about New Oriental for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for New Oriental Education help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

New Oriental Alerts

Equity 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
The company reported the last year's revenue of 3.79 B. Reported Net Loss for the year was (1.04 B) with profit before taxes, overhead, and interest of 2.24 B.
New Oriental Education has about 4.41 B in cash with (1.01 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 25.99, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
New Oriental has a strong financial position based on the latest SEC filings
Roughly 66.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.marketscreener.com: New Oriental Education Technology Announcement - Further Repurchase of the Bonds - Form 6-K - Marketscreener.com
Continue to Investing Opportunities. 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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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.