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.



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