New Oriental Education & Technology Group Inc. (NYSE:EDU) Enters Near-Term Consolidation After Fiscal Results

New Oriental shows mixed fundamental momentum and weakening technical breadth, implying consolidation near current levels while investors digest fiscal-year outcomes and analyst repositioning.

Recent News

On July 2, 2025 the company announced it would report fourth-quarter fiscal 2025 results on July 30, 2025. On July 30, 2025 New Oriental published its fourth-quarter and full-year results for the fiscal year ended May 31, 2025. In late June and July several broker notes revised ratings: JPMorgan upgraded to overweight on June 24–26 timeframe and Citigroup published an upgrade on June 27, 2025; HSBC issued a downgrade on July 30, 2025. In August 2025 Goldman Sachs reduced its rating on August 6, and filings noted block sales and institutional position changes in mid-August.

Technical Analysis

Directional indicators present a bearish tilt: DI+ at 35.75 shows a recent peak-and-reversal, while DI- at 22.93 shows a dip-and-reversal; both patterns indicate directional pressure shifting toward sellers despite a still-elevated DI+ level. ADX at 21.12 signals only emerging trend strength, so directional signals carry limited conviction for sustained moves.

MACD sits at 1.16 just above its signal line at 1.14, but the MACD trend reads as a peak-and-reversal, which indicates waning bullish momentum despite the marginal intraday positioning above the signal line.

MRO registers positive at 6.15 with an increasing trajectory, indicating price sits above the model target and exhibits modest downward pressure as momentum normalizes toward target levels.

RSI at 54.02 with a peak-and-reversal pattern points to a short-term loss of upward momentum while remaining in the neutral band, consistent with consolidation rather than a decisive breakout or breakdown.

Price vs moving averages: the last close at $50.88 trades just below the 20-day average of $52.24 and very near the 200-day average of $50.57; the 12-day EMA shows a peak-and-reversal, reinforcing near-term lateral price action bounded by short-term resistance near the 20-day average and the super-trend upper band at $54.74.

Volatility and volume context compresses the signal: 42-day volatility stands at 2% and 52-week volatility at 3%, while daily volume (554,800) remains below the 10/50/200-day averages, indicating lower participation and increasing probability of range-bound moves until a catalyst restores volume.

 


Fundamental Analysis

Earnings: Q4 EPS arrived at $0.61 versus an estimate of $0.42, producing an EPS surprise of +45.24%. That beat coincides with a negative annual earnings-growth profile: earnings growth registered -12.86% year-over-year, with QoQ change at -105.89% and YoY at -80.24%, highlighting pronounced recent earnings volatility despite the beat.

Valuation metrics present a disconnect between current and forward expectations. Trailing PE equals 80.66 while forward PE sits at 44.85; forward EPS forecasts $1.08. The trailing PE sits above the industry peer mean of 63.31 and median of 54.73, placing the stock above typical peer multiples. PEG registers -6.27, below the industry peer mean of -1.71 and median of -0.50, with the peer range spanning from -17.59 to 8.39.

Revenue figures show anomalous values: reported revenue growth reads 0.00% overall, with both QoQ and YoY flagged as -100.00% in the provided figures; those metrics indicate an extreme decline in reported growth rates and warrant careful attention to company disclosures and segment reporting for reconciliation.

Balance-sheet and cash metrics: invested capital stands at $-3,556,136,000; reported cash-flow margin and cash-flow-to-earnings are both 0.00 in the provided figures. WMDST values the stock as fair-valued, reflecting the combination of a rich trailing multiple, lower forward multiple, EPS beats alongside sharply negative growth rates, and the apparent cash/ invested-capital profile.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-05-31
REPORT DATE: 2025-07-30
NEXT REPORT DATE: 2025-10-28
CASH FLOW  Begin Period Cash Flow —
 Operating Cash Flow —
 Capital Expenditures —
 Change In Working Capital —
 Dividends Paid —
 Cash Flow Delta —
 End Period Cash Flow —
 
INCOME STATEMENT REVENUE
 Total Revenue —
 Forward Revenue —
COSTS
 Cost Of Revenue —
 Depreciation —
 Depreciation and Amortization —
 Research and Development —
 Total Operating Expenses —
PROFITABILITY
 Gross Profit —
 EBITDA —
 EBIT —
 Operating Income —
 Interest Income —
 Interest Expense —
 Net Interest Income —
 Income Before Tax —
 Tax Provision —
 Tax Rate —
 Net Income —
 Net Income From Continuing Operations —
EARNINGS
 EPS Estimate $ 0.42
 EPS Actual $ 0.61
 EPS Difference $ 0.19
 EPS Surprise 45.238 %
 Forward EPS $ 1.08
 
BALANCE SHEET ASSETS
 Total Assets —
 Intangible Assets —
 Net Tangible Assets —
 Total Current Assets —
 Cash and Short-Term Investments —
 Cash —
 Net Receivables —
 Inventory —
 Long-Term Investments —
LIABILITIES
 Accounts Payable —
 Short-Term Debt —
 Total Current Liabilities —
 Net Debt —
 Total Debt —
 Total Liabilities —
EQUITY
 Total Equity —
 Retained Earnings —
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share —
 Shares Outstanding —
 Revenue Per-Share —
VALUATION
 Market Capitalization —
 Enterprise Value —
 Enterprise Multiple —
Enterprise Multiple QoQ —
Enterprise Multiple YoY —
Enterprise Multiple IPRWA —
 EV/R —
CAPITAL STRUCTURE
 Asset To Equity —
 Asset To Liability —
 Debt To Capital —
 Debt To Assets —
Debt To Assets QoQ —
Debt To Assets YoY —
Debt To Assets IPRWA —
 Debt To Equity —
Debt To Equity QoQ —
Debt To Equity YoY —
Debt To Equity IPRWA —
PRICE-BASED VALUATION
 Price To Book (P/B) —
Price To Book QoQ —
Price To Book YoY —
Price To Book IPRWA —
 Price To Earnings (P/E) 80.66
Price To Earnings QoQ 14.921 %
Price To Earnings YoY -76.945 %
Price To Earnings IPRWA high: 178.212
EDU: 80.66
mean: 63.308
median: 54.734
low: -169.263
 PE/G Ratio -6.274
 Price To Sales (P/S) —
Price To Sales QoQ —
Price To Sales YoY —
Price To Sales IPRWA —
FORWARD MULTIPLES
Forward P/E 44.852
Forward PE/G -3.489
Forward P/S —
EFFICIENCY OPERATIONAL
 Operating Leverage —
ASSET & SALES
 Asset Turnover Ratio —
Asset Turnover Ratio QoQ —
Asset Turnover Ratio YoY —
Asset Turnover Ratio IPRWA —
 Receivables Turnover —
Receivables Turnover Ratio QoQ —
Receivables Turnover Ratio YoY —
Receivables Turnover Ratio IPRWA —
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) —
CASH CYCLE
 Cash Conversion Cycle Days (CCC) —
Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA high: 157.689
median: 84.876
mean: 60.418
EDU: 0
low: -22.108
CAPITAL DEPLOYMENT
 Cash Conversion Ratio —
 CapEx To Revenue —
 CapEx To Depreciation —
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital —
 Net Invested Capital —
 Invested Capital $ -3.56 B
 Net Tangible Assets —
 Net Working Capital —
LIQUIDITY
 Cash Ratio —
 Current Ratio —
Current Ratio QoQ —
Current Ratio YoY —
Current Ratio IPRWA —
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA —
 Cost Of Debt 0.0 %
 Interest Coverage Ratio —
Interest Coverage Ratio QoQ —
Interest Coverage Ratio YoY —
Interest Coverage Ratio IPRWA —
 Operating Cash Flow Ratio —
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) —
DIVIDENDS
 Dividend Coverage Ratio —
 Dividend Payout Ratio —
 Dividend Rate —
 Dividend Yield —
PERFORMANCE GROWTH
 Asset Growth Rate —
 Revenue Growth 0.0 %
Revenue Growth QoQ -100.0 %
Revenue Growth YoY -100.0 %
Revenue Growth IPRWA high: 17.27 %
EDU: 0.0 %
mean: -1.326 %
median: -1.518 %
low: -14.452 %
 Earnings Growth -12.857 %
Earnings Growth QoQ -105.893 %
Earnings Growth YoY -80.244 %
Earnings Growth IPRWA high: 191.304 %
EDU: -12.857 %
median: -13.542 %
mean: -30.546 %
low: -300.0 %
MARGINS
 Gross Margin —
Gross Margin QoQ —
Gross Margin YoY —
Gross Margin IPRWA —
 EBIT Margin —
EBIT Margin QoQ —
EBIT Margin YoY —
EBIT Margin IPRWA —
 Return On Sales (ROS) —
Return On Sales QoQ —
Return On Sales YoY —
Return On Sales IPRWA —
CASH FLOW
 Free Cash Flow (FCF) —
 Free Cash Flow Yield —
Free Cash Flow Yield QoQ —
Free Cash Flow Yield YoY —
Free Cash Flow Yield IPRWA —
 Free Cash Growth —
Free Cash Growth QoQ —
Free Cash Growth YoY —
Free Cash Growth IPRWA —
 Free Cash To Net Income —
 Cash Flow Margin 0.0 %
 Cash Flow To Earnings 0.0
VALUE & RETURNS
 Economic Value Added —
 Return On Assets (ROA) —
Return On Assets QoQ —
Return On Assets YoY —
Return On Assets IPRWA —
 Return On Capital Employed (ROCE) —
 Return On Equity (ROE) —
Return On Equity QoQ —
Return On Equity YoY —
Return On Equity IPRWA —
 DuPont ROE —
 Return On Invested Capital (ROIC) —
Return On Invested Capital QoQ —
Return On Invested Capital YoY —
Return On Invested Capital IPRWA —

Six-Week Outlook

Expect lateral trading with a slight downside bias. Technicals—DI+ and DI- reversal patterns, a MACD peak-and-reversal, positive MRO, and a neutral RSI—favor consolidation and occasional downwards probes rather than a sustained rally. Low volume and compressed volatility increase the likelihood of range-bound price action between the $48–$55 region, with any decisive move likely dependent on renewed volume or materially different forward guidance when the company reports next (next scheduled report date: 2025-10-28).

About New Oriental Education & Technology Group Inc.

New Oriental Education & Technology Group Inc. (NYSE:EDU) delivers a broad spectrum of private educational services across China. Established in 1993 and based in Beijing, the company provides diverse educational programs, including test preparation courses, non-academic tutoring, and intelligent learning systems. New Oriental’s test preparation courses equip students for language proficiency and entrance exams necessary for educational institutions in China, the United States, and Commonwealth countries. The company extends its educational reach through its online platform, Koolearn.com, offering flexible digital learning solutions. New Oriental also supports students pursuing international education through overseas study consulting services, guiding them through the complexities of studying abroad. In addition to these services, the company develops and distributes educational materials, which aid in language training and test preparation, available through its network of schools, learning centers, and bookstores. New Oriental’s comprehensive approach to education aims to provide students with the necessary tools and knowledge to thrive in an increasingly globalized environment. By continually expanding and enhancing its service offerings, the company remains a significant player in the private education sector in China.



© 2025 WMDST — The World’s Most Dangerous Swing Trader. All rights reserved.