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What is New Oriental Education & Technology Group ROE %?
New Oriental Education & Technology GroupNWOEF 59 ROE % is 12.73% as of Feb. 2026, which is 22% above its 10-year median of 10.47. GuruFocus rates NWOEF with a GF Score™ of 59/100 and a GF Value™ of $7.41 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 259 Education companies, New Oriental Education & Technology Group ranks better than 60.62% on this metric.
NWOEF's ROE % is ranked better than 60.62% of 259
companies
in the Education industry
Industry Median: 7.31
vs NWOEF: 10.90
New Oriental Education & Technology Group (OTCPK:NWOEF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
New Oriental Education & Technology Group ROE % Related Terms
New Oriental Education & Technology Group ROE % 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 ROE % Chart
New Oriental Education & Technology Group Annual Data
For the Education & Training Services subindustry, New Oriental Education & Technology Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
New Oriental Education & Technology Group (NWOEF) has a ROE % of 12.73% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on New Oriental Education & Technology Group and its competitors. This is 22% above median its historical median of 10.47. According to the industry distribution chart, New Oriental Education & Technology Group ranks #102 out of 259 companies in the Education industry, placing it in the top 39.4%.
Is New Oriental Education & Technology Group's ROE % too high?
New Oriental Education & Technology Group's current ROE % of 12.73% is 22% above median its 10-year median of 10.47. The Education industry median ROE % is 7.31. New Oriental Education & Technology Group's value of 12.73% is 74.1% above this industry median. Based on the distribution chart, New Oriental Education & Technology Group ranks #102 out of 259 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 ROE % compare to TAL and LAUR?
According to the Education industry distribution chart, New Oriental Education & Technology Group ranks #102 out of 259 companies for ROE %. This puts New Oriental Education & Technology Group in the upper half of its industry. The industry median ROE % is 7.31. New Oriental Education & Technology Group's value of 12.73% is 74.1% above this benchmark. While the company's 10-year median is 10.47 vs. the industry median of 7.31, 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 ROE % for an Education company?
The median ROE % among Education companies is 7.31, based on 259 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. New Oriental Education & Technology Group's current ROE % of 12.73% is 74.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on New Oriental Education & Technology Group and its competitors. For the Education industry, the median ROE % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Oriental Education & Technology Group's current ROE % is 12.73%, which is 22% above median its own 10-year median of 10.47. 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 ROE % is 12.73%, which is 22% above median its 10-year median of 10.47 and 74.1% above the Education industry median of 7.31. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For New Oriental Education & Technology Group (NWOEF), the current ROE % is 12.73% 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:
ROE %: 12.73% (22% above median its 10-year median of 10.47)
GF Value™: $7.41 vs. price of $4.52 (39% below fair value)
Industry Position: 74.1% above the Education median (#102 of 259)
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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