New Oriental Education & Technology Group Inc. (NYSE:EDU) shareholders might be concerned after seeing the share price drop 18% in the last month. But that doesn't detract from the splendid returns of the last year. During that period, the share price soared a full 215%. So it may be that the share price is simply cooling off after a strong rise. More important, going forward, is how the business itself is going.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for New Oriental Education & Technology Group

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

New Oriental Education & Technology Group was able to grow EPS by 96% in the last twelve months. Though we do note extraordinary items affected the bottom line. This EPS growth is significantly lower than the 215% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that New Oriental Education & Technology Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think New Oriental Education & Technology Group will grow revenue in the future.

A Different Perspective

It's good to see that New Oriental Education & Technology Group has rewarded shareholders with a total shareholder return of 215% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 10% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: New Oriental Education & Technology Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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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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