• New Oriental Education & Technology Group recently announced its fiscal year 2025 results, reporting net revenues of US$4.90 billion, net income of US$371.72 million, and unveiled strong guidance for continued revenue growth and a new three-year shareholder return plan.
• An interesting highlight is the company's commitment to return at least half of its net income to shareholders via dividends and share repurchases, reflecting greater focus on capital return policies.
• We'll examine what the newly announced capital return plan could mean for the company's long-term investment narrative and future prospects.

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New Oriental Education & Technology Group Investment Narrative Recap

To be a shareholder in New Oriental Education & Technology Group, you need to believe in the long-term growth of China’s premium education and enrichment markets, alongside steady execution in both core and emerging business segments. The recent fiscal results and guidance suggest stable top-line momentum, while the new capital return plan strengthens the short-term catalyst of direct shareholder rewards; however, the announcement does not materially reduce persistent risks from regulatory shifts and competitive pressures.

Among the latest announcements, the three-year commitment to return at least 50% of net income to shareholders via dividends and buybacks is particularly relevant, as it supports ongoing EPS growth and could bolster investor confidence, even amid challenging macro and sector dynamics.

Yet, investors should also be aware that, in contrast, the risks posed by recent goodwill impairments remind us of ongoing regulatory and demographic pressures that could impact profitability if…

Read the full narrative on New Oriental Education & Technology Group (it's free!)

New Oriental Education & Technology Group's outlook forecasts $6.5 billion in revenue and $630.7 million in earnings by 2028. This requires 10.6% annual revenue growth and a $239.1 million increase in earnings from the current earnings of $391.6 million.

Uncover how New Oriental Education & Technology Group's forecasts yield a $62.32 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Fair value views from three Simply Wall St Community members for EDU range from US$40.42 to US$122.66, suggesting wide differences in outlook. While many see catalysts in cost control and capital return, competitive intensity and regulatory uncertainty remain important factors for future performance.

Explore 3 other fair value estimates on New Oriental Education & Technology Group - why the stock might be worth 9% less than the current price!

Build Your Own New Oriental Education & Technology Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Oriental Education & Technology Group research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free New Oriental Education & Technology Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Oriental Education & Technology Group's overall financial health at a glance.

No Opportunity In New Oriental Education & Technology Group?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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