Is the business good?
How good a business is EDU?
New Oriental Education & Technology Group Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.4 points above what the capital costs: growth creates value
- Operating margin
- 8.7%
Operating margin · Education & Training Services median 13% · fiscal year to FY2025
- Cash conversion
- 1.76×
Cash conversion · 2.82× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 2.7% |
| FY2022 | −32% |
| FY2023 | 6.3% |
| FY2024 | 8.1% |
| FY2025 | 8.7% |
Details›
- Gross marginfiscal year to FY2025
- 55%
- Operating marginfiscal year to FY2025
- 8.7%
- Net marginfiscal year to FY2025
- 7.6%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $4.90B
- Free cash flow, trailing twelve months
- $655M
- Net income, trailing twelve months
- $372M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Education & Training Services
Ranks #2 of 16 by Smart Score