Is New Oriental Education & Technology Group Inc. (EDU) Halal?

NYSE Consumer Defensive China $9.1B
✗ NOT HALAL
Confidence: 90/100
New Oriental Education & Technology Group Inc. (EDU) is Not Halal under AAOIFI Standard 21. While the debt ratio of 9.2% is acceptable, the cash and interest-bearing securities ratio of 52.1% exceeds the 30% threshold. New Oriental Education & Technology Group Inc. operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from May 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 9.2%
/ 30%
52.1%
/ 30%
2.2%
/ 30%
2.44%
/ 5%
✗ NOT HALAL
DJIM 9.2%
/ 33%
52.1%
/ 33%
2.2%
/ 33%
2.44%
/ 5%
✗ NOT HALAL
MSCI 10.3%
/ 33%
58.7%
/ 33%
2.4%
/ 33%
2.44%
/ 5%
✗ NOT HALAL
S&P 9.2%
/ 33%
52.1%
/ 33%
2.2%
/ 33%
2.44%
/ 5%
✗ NOT HALAL
FTSE 10.3%
/ 33%
58.7%
/ 33%
2.4%
/ 50%
2.44%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
22.7
Forward: 12.9
EPS
$2.40
Dividend Yield
220.0%
Payout: 25.0%
P/B Ratio
2.2
EV/EBITDA
115.1
EV: $82.7B
Revenue
$4.9B
Growth: 14.7%
Beta
0.3
Low volatility
Current Ratio
1.6

Profitability

Gross Margin 55.3%
Operating Margin 5.6%
Net Margin 7.4%
Return on Equity (ROE) 9.9%
Return on Assets (ROA) 4.3%

Cash Flow & Balance Sheet

Operating Cash Flow$897M
Free Cash Flow$637M
Total Debt$804M
Debt-to-Equity18.5
Current Ratio1.6
Total Assets$7.8B

Price & Trading

Last Close$55.77
50-Day MA$57.07
200-Day MA$53.47
Avg Volume931K
Beta0.3
52-Week Range
$40.66
$64.97

About New Oriental Education & Technology Group Inc. (EDU)

CEO
Mr. Chenggang Zhou
Employees
76,646
Sector
Consumer Defensive
Industry
Education & Training Services
Country
China
Exchange
NYSE
Market Cap
$9.1B
Currency
USD

New Oriental Education & Technology Group Inc. engages in the provision of private educational services under the New Oriental brand in the People's Republic of China. The company operates through four segments: Educational Services and Test Preparation Courses; Private Label Products and Livestreaming E-Commerce; Overseas Study Consulting Services; and Educational Materials and Distribution. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People's Republic of China. It also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services. In addition, the company offers online education services through the Koolearn.com platform. Further, it develops and edits educational materials for language training and test preparation. In addition, the company offers educational programs, services, and products to students through schools; learning centers; and bookstores, as well as through its online learning platforms. New Oriental Education & Technology Group Inc. was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

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Frequently Asked Questions

Is New Oriental Education & Technology Group Inc. (EDU) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), New Oriental Education & Technology Group Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is New Oriental Education & Technology Group Inc.'s debt ratio?

New Oriental Education & Technology Group Inc.'s debt ratio is 9.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.3%.

What are New Oriental Education & Technology Group Inc.'s key financial metrics?

New Oriental Education & Technology Group Inc. has a market capitalization of $9.1B, trailing P/E ratio of 22.7, and revenue of $4.9B. The company maintains a gross margin of 55.3% and a net margin of 7.4%. Return on equity stands at 9.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.