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NWOEF's ROA % is ranked better than 59.7% of 263
companies
in the Education industry
Industry Median: 3.9
vs NWOEF: 5.28
New Oriental Education & Technology Group (OTCPK:NWOEF) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
New Oriental Education & Technology Group ROA % Related Terms
New Oriental Education & Technology Group ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
New Oriental Education & Technology Group ROA % Chart
New Oriental Education & Technology Group Annual Data
For the Education & Training Services subindustry, New Oriental Education & Technology Group's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
New Oriental Education & Technology Group ROA % vs Education Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
New Oriental Education & Technology Group (NWOEF) has a ROA % of 6.14% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on New Oriental Education & Technology Group and its competitors. This is 18% above median its historical median of 5.19. According to the industry distribution chart, New Oriental Education & Technology Group ranks #106 out of 263 companies in the Education industry, placing it in the top 40.3%.
Is New Oriental Education & Technology Group's ROA % too high?
New Oriental Education & Technology Group's current ROA % of 6.14% is 18% above median its 10-year median of 5.19. The Education industry median ROA % is 3.90. New Oriental Education & Technology Group's value of 6.14% is 57.4% above this industry median. Based on the distribution chart, New Oriental Education & Technology Group ranks #106 out of 263 companies in the Education industry, which is above the industry midpoint. Overall, New Oriental Education & Technology Group has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does New Oriental Education & Technology Group's ROA % compare to TAL and LAUR?
According to the Education industry distribution chart, New Oriental Education & Technology Group ranks #106 out of 263 companies for ROA %. This puts New Oriental Education & Technology Group in the upper half of its industry. The industry median ROA % is 3.90. New Oriental Education & Technology Group's value of 6.14% is 57.4% above this benchmark. While the company's 10-year median is 5.19 vs. the industry median of 3.90, New Oriental Education & Technology Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Education company?
The median ROA % among Education companies is 3.90, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. New Oriental Education & Technology Group's current ROA % of 6.14% is 57.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on New Oriental Education & Technology Group and its competitors. For the Education industry, the median ROA % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Oriental Education & Technology Group's current ROA % is 6.14%, which is 18% above median its own 10-year median of 5.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Oriental Education & Technology Group stock overvalued right now?
Based on GuruFocus' analysis, New Oriental Education & Technology Group (NWOEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $7.41, compared to a current price of $4.52 — trading 39% below its estimated fair value. The current ROA % is 6.14%, which is 18% above median its 10-year median of 5.19 and 57.4% above the Education industry median of 3.90. New Oriental Education & Technology Group's overall GF Score™ is 59/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For New Oriental Education & Technology Group (NWOEF), the current ROA % is 6.14% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is New Oriental Education & Technology Group (NWOEF) Overvalued in 2026?
Based on GuruFocus' analysis, New Oriental Education & Technology Group stock appears to be undervalued.
The current stock price of $4.52 is trading 39% below its estimated GF Value™ of $7.41.
GuruFocus considers New Oriental Education & Technology Group to be Significantly Undervalued.
Key valuation signals for NWOEF:
ROA %: 6.14% (18% above median its 10-year median of 5.19)
GF Value™: $7.41 vs. price of $4.52 (39% below fair value)
Industry Position: 57.4% above the Education median (#106 of 263)
No single metric tells the full story. See the NWOEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Oriental Education & Technology Group Business Description
New Oriental Education & Technology is a prominent private education provider in China, offering a wide array of educational services. These include overseas test preparation and consulting services, high school academic tutoring, nonacademic tutoring, and intelligent learning systems and devices. Additionally, the company holds a 57% ownership stake in East Buy, a leading player in the livestreaming e-commerce market.
59GF Score
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