New Oriental Education & Technology Group, Inc.

EDU Consumer Defensive Education & Training Services

New Oriental Education & Technology Group, Inc.’s revenue for fiscal 2026 (year ended May 2026) was $5.7 billion, up 15.5% from fiscal 2025. In the quarter to May 2026, revenue grew 23.0%, EPS grew 900.0% and free cash flow grew 72.9%, each against the same quarter a year earlier. Revenue growth for three consecutive years.

60.88 0.53 +0.88%
Market cap
$8.4B
P/E
20.2×
Fwd P/E
11.4×
Dividend yield
0.99%
F-score
7/9
Altman Z
2.44
Beneish M
−2.65
Dividend safety
77/100

New Oriental Education & Technology Group, Inc. (EDU) Altman Z-score

Alert me on Altman Z-score

New Oriental Education & Technology Group, Inc.'s Altman Z-score for fiscal 2026 is 2.44, in the grey zone (1.81–2.99).

Altman Z-score, annual

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Annual newest first

Period Altman Z-score Change (points)
FY2026 2.44 (0.17)
FY2025 2.61 (1.05)
FY2024 3.67 0.95
FY2023 2.71 1.35
FY2022 1.37 (1.75)
FY2021 3.12 (1.38)
FY2020 4.50 (1.09)
FY2019 5.59 (0.87)
FY2018 6.46 (1.09)
FY2017 7.56 1.29

How fiscal 2026’s score is made up

Component This year Year before Result Points
Working capital / total assets 0.22 — 0.27
Retained earnings / total assets 0.23 — 0.32
EBIT / total assets 0.07 — 0.24
Market value of equity / total liabilities 1.62 — 0.97
Sales / total assets 0.64 — 0.64
Altman Z-score Grey zone 2.44
Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) Safe zone 3.71

Z and Z″ put New Oriental Education & Technology Group, Inc. in different zones: grey zone by Z, safe zone by Z″.

How the Altman Z-score works

Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.

Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.

Zone Z Z″
Safe zoneabove 2.99above 2.60
Grey zone1.81–2.991.10–2.60
Distress zonebelow 1.81below 1.10

Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.

Altman Z-score against peers

What Altman Z-score is

The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.

1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets

The full definition of Altman Z-score →

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