New Oriental Education & Technology Group Inc.
Key Drivers
- High gross margin
- Compressed net margin
- Robust free cash flow
AIAI Summary
EDU has shifted from a policy‑recovery trade to a cash‑rich, margin‑improvement story where upside now hinges on execution—sustaining double‑digit growth in adult/non‑K‑12 lines, durable margin recovery and FCF conversion, while closely monitoring high SG&A and the sustainability of buybacks/dividends.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High gross margin
- •Compressed net margin
- •Robust free cash flow
EDU combines strong gross margins and robust free cash flow that support investment and liquidity, but very high SG&A and a sharply compressed recent quarterly net margin warn of near-term profitability pressure despite manageable debt.
Price Behavior
Key Price Behavior Insights:
- •Short-term downtrend
- •Support-tested repeatedly
- •Weak recovery attempts
EDU fell ~8–9% from $60.25 to $54.98 over the last month, showing a clear short-term downtrend with sellers in control, defined support at $52.55 and resistance at $61.25, and weak rallies that failed to regain the trading-range midpoint.
Sharp drop from mid-February into early
Sentiment & News
Key News Insights:
- •Zacks Strong Buy
- •Large fund sell‑off
- •Divergent outlooks
New Oriental draws conflicting signals as Zacks names EDU a top growth buy while Alkeon sharply trimmed its stake, indicating divergent analyst optimism versus institutional profit-taking. #institutional-sell
Mixed analyst praise versus significant hedge-fund selling suggests short-term sentiment volatility and warrants monitoring of earnings revisions and ownership trends
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