New Oriental Education & Technology Group
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 1/3
| Measure | EDU | Checked against | |
|---|---|---|---|
| Owner earnings | $269.58m | positive | ✓ |
| Return on equity | 10.2% | median 11.7% | ✗ |
| Debt to equity | — | median 0.79x | — |
| Operating margin | 8.7% | median 15.0% | ✗ |
Passes 1 of 3. To be clear: Warren Buffett has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 1/2
| Measure | EDU | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Cash conversion | 2.41x | median 1.78x | ✓ |
| Operating margin | 8.7% | median 15.0% | ✗ |
| Debt to equity | — | median 0.79x | — |
Passes 1 of 2. To be clear: Terry Smith has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 0/2
| Measure | EDU | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Return on equity | 10.2% | median 11.7% | ✗ |
| Operating margin | 8.7% | median 15.0% | ✗ |
Passes 0 of 2. To be clear: Charlie Munger has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/3
| Measure | EDU | Checked against | |
|---|---|---|---|
| Return on equity | 10.2% | median 11.7% | ✗ |
| Debt to equity | — | median 0.79x | — |
| Cash conversion | 2.41x | median 1.78x | ✓ |
| Return on equity, sustained | 4 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 3. To be clear: Chuck Akre has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 1/3
| Measure | EDU | Checked against | |
|---|---|---|---|
| Operating margin | 8.7% | median 15.0% | ✗ |
| Net margin | 7.6% | median 10.2% | ✗ |
| Return on capital employed | — | median 10.1% | — |
| Operating margin, held or improving | 8.7% | 10-yr median 8.7% | ✓ |
Passes 1 of 3. To be clear: Philip Fisher has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 1/1
| Measure | EDU | Checked against | |
|---|---|---|---|
| Current ratio | 1.58x | median 1.25x | ✓ |
| Debt to equity | — | median 0.79x | — |
Passes 1 of 1. To be clear: Walter Schloss has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/2
| Measure | EDU | Checked against | |
|---|---|---|---|
| Current ratio | 1.58x | 2.00x published | ✗ |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 3 yrs | 10 published | ✗ |
Passes 0 of 2. To be clear: Benjamin Graham has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 0/1
| Measure | EDU | Checked against | |
|---|---|---|---|
| Debt to equity | — | median 0.79x | — |
| Net margin | 7.6% | median 10.2% | ✗ |
Passes 0 of 1. To be clear: Peter Lynch has never said anything about New Oriental Education & Technology Group. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 26.2% | whyThe figure most screeners publish. |
| Operating cash flow | 11.0% | whyBefore capital spending. |
| Free cash flow | 15.0% | whyAfter maintaining the business. |
Spread between highest and lowest: 15.2 percentage points. Same filings, different denominators.
Coverage rating 71 / 100 — Adequate. ? Peer standing 43/50Direction 18/30Stability 9/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-05-31 | 15.0% |
| 2018-05-31 | 12.6% |
| 2016-05-31 | 13.6% |
| 2014-05-31 | 16.5% |
| 2013-05-31 | 21.2% |
| 2012-05-31 | 28.2% |
86% of the 44 consumer discretionary here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.0602 ÷ diluted EPS $0.230
- Operating cash flow — dividends paid $98.2m ÷ operating cash flow $897m
- Free cash flow — dividends paid $98.2m ÷ (operating cash flow $897m − capex $242m)
Where the figures came from
- 20-F filed 2025-09-25 · accession 0001193125-25-216394
All public at sec.gov — you should not have to take our word for it.
Caveats on this company
- DPS derived from dividends paid ($0.06); no per-share tag filed
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever New Oriental Education & Technology Group files. The monthly letter carries what filed, what moved, and one finding computed across every company here.