New Oriental Education & Technology Group Inc. (EDU) it is briefly referred to as New Oriental. New Oriental is a company providing special education services located in China. The New Oriental was founded in 1993. New Oriental Education & Technology Group was founded by Yu Minhong. New Oriental has its headquarters in Beijing. By looking at student records, we can say that it is now the largest and most comprehensive private education company in China.
When the company was first founded, it progressed towards TOEFL and GRE exams, but later worked towards various exams and fields. The aim of New Oriental covers many areas such as preschool education, courses for students of different age groups, online education, overseas education consulting. The New Oriental became the first Chinese educational institution to enter the New York Stock Exchange.
The company offers mainly English language courses. German Japanese French Korean Italian Spanish and other foreign languages are also available. They also develop a variety of materials for language training and language exams, progressing according to the curriculum. In addition to its online programs, it also has programs for K-12 and preschool education. As of May 31, 2020, the company has 104 schools and 1,361 learning centers.
EDU Stock Price
The company is listed on the New York Stock Exchange as EDU stock. Edu stock are not in the top 10 to invest listed by investors. But as a big factor of this, we can say that the company’s main organization is focused on education and does not stand out much in the field of investment, as it conducts its main work in this field. When we look at the graphical state of the Edu stock, it went up in February 2021. But then there is a constant state of increase and decrease. As his final state, we can say that he is in a state of decline.
Looking at the annual income of the Edu stock, its income is $1,190. 50 million. But thanks to the generated charts, there seems to be a big difference between net income and revenue. İn this case, the profit margin is 11.55%. If we look at the balance sheet status of Edu stock over the past four years,it is seen that its total assets are $ 6,556.89 million and its total liabilities are $ 3,687.07 million. In this case, debt to assets arises as 24.10%.
After the company’s shares fell in mid-May 2021, it was said that some of its training programs in China would be limited, such as reducing the number of time and courses. ROCE is a measure of annual tax return used in businesses. When we look at the ROCE of New Oriental Education & Technology Group, we see that it is 3.5%. Given that the sector average is 7.5%, The Return of New Oriental Education & Technology Group remains below this average. Five years ago, it was 14%, but now it is in a big decline, which is not well appreciated from the point of view of investors.
It looks like it may take some time for the company’s shares to rise above average again. Earnings growth is a measure that helps in evaluating any stock. For some investors, this decline appears to be an advantage. because when there is a decline, the shares will see a big increase in value when there is an increase. Even if the New Oriental Education & Technology Group is in decline, it is believed that it can survive because it has the foundations along with its investments. But the decline it has experienced leaves some investors in a dilemma.
This is not investment advice. You must do your own research and make your own decisions. We are not responsible for the problems that may arise from your investment.