New Oriental Education & Technology Group Inc. (EDU): a potential bargain?

Buy — the 2021 crash was China banning for-profit tutoring, but EDU rebuilt around new businesses and is now growing 20%+ with beating earnings.

🔥 HOT Fundamentals74/100

Down 75% from its all-time high of $195.87 — now $49.91

Why EDU dropped

The stock's collapse from its 2021 peak was caused by China's "double reduction" policy that banned for-profit academic tutoring for kids, which gutted EDU's core business overnight; that is old news, not what is happening today — the stock is actually sitting at its 30-day high right now, not crashing.

Fwd P/E 11.6Op margin 12.7%Rev growth 19.8%Debt/equity 18.3%Analyst upside 41.5%

How this scored 74/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 7.8%

✅ Generates cash Free cash flow $617M

✅ Not drowning in debt Debt/equity 18.3% (limit 200%)

✅ Can pay its bills Current ratio 1.7 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 10/25

Operating margin 12.7% 5/9

Net profit margin 7.8% 3/8

Return on equity 10.8% 2/8

Growth Is it getting bigger, or dying? 23/25

Revenue growth 19.8% 7/9

Earnings growth 60.0% 8/8

Expected profit change 59.3% 8/8

Value Is it cheap right now? 21/25

Forward P/E 11.6 9/10

PEG ratio 0.8 7/8

Analyst target upside 41.5% 5/7

Balance sheet Will it survive? 20/25

Debt / equity 18.3% 10/10

Current ratio 1.7 3/8

Free cash flow $617M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-28. Research only — not financial advice.