New Oriental Education & Technology Group Inc.

EDUdata completeness 88%17 fiscal years on file
The thesis, from the filings

New Oriental Education & Technology Group Inc. earns about 5% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $1.97 and $28.5 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$4.28B1$3.11B2$3B3$4.31B3$4.9B3
Net income$334.4M4−$1.19B5$177.3M6$309.6M6$371.7M6
Operating cash flow$1.13B7−$1.28B8$971M9$1.12B9$896.6M9
Capital expenditure$429.2M10$150.7M11$143M12$249.4M12$241.9M12
Free cash flow (derived)$700.9M7−$1.43B8$828M9$873.3M9$654.7M9
Total debt$013
Cash & equivalents$1.61B14$1.15B15$1.66B16$1.39B17$1.61B17
Diluted shares1.65B1.70B1.69B1.67B1.63B

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$22.45
your share of equity
Profit it earned you last year
$2.28
Free cash flow it threw off
$4.01
Debt you’d be carrying

10 shares is a claim on $22.45 of net worth that earned you $2.28 and generated $4.01 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 5y
FY21 7%FY22 -32%FY23 13%FY24 16%FY25 19%

It earned about 5% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $1.97 and $28.5 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$28.5
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth18.7%
  • fcfBase$828M
DCF · Growth Exit 5Y
$16.73
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth18.7%
  • fcfBase$828M
Earnings Power Value
$1.97
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$309.6M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years18.7%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $16.73
The three cases
Bear0.0%$8.24
Base18.7%$16.73
Bull20.0%$17.54

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 18.7%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-05-31 · accession 0001193125-23-240864 (Revenues)
  2. 20-F · period ending 2022-05-31 · accession 0001193125-24-225183 (Revenues)
  3. 20-F · period ending 2023-05-31 · accession 0001193125-25-216394 (Revenues)
  4. 20-F · period ending 2021-05-31 · accession 0001193125-23-240864 (NetIncomeLoss)
  5. 20-F · period ending 2022-05-31 · accession 0001193125-24-225183 (NetIncomeLoss)
  6. 20-F · period ending 2023-05-31 · accession 0001193125-25-216394 (NetIncomeLoss)
  7. 20-F · period ending 2021-05-31 · accession 0001193125-23-240864 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-05-31 · accession 0001193125-24-225183 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-05-31 · accession 0001193125-25-216394 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-05-31 · accession 0001193125-23-240864 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-05-31 · accession 0001193125-24-225183 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-05-31 · accession 0001193125-25-216394 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-05-31 · accession 0001193125-21-282201 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2021-05-31 · accession 0001193125-22-253809 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2022-05-31 · accession 0001193125-23-240864 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2023-05-31 · accession 0001193125-24-225183 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2024-05-31 · accession 0001193125-25-216394 (CashAndCashEquivalentsAtCarryingValue)