Is New Oriental Education & Technology Group Inc. (EDU) halal? Not Halal. Based on AAOIFI screening, New Oriental Education & Technology Group Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

New Oriental Education & Technology Group Inc.

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

Not Halal

New Oriental Education & Technology Group Inc.

NYSEConsumer DefensiveCN

$47.19

+0.23%

About New Oriental Education & Technology Group Inc.

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. It operates through K-12 AST, Test Preparation and Other Courses; Online Education; and Others segments. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to enhance their exam scores, as well as for children to teach English. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary school in Yangzhou seeking a full curriculum with a focus on English; develops and edits educational materials for language training and test preparation; and offers online education programs that include college, K-12, and pre-school education. In addition, the company offers overseas studies consulting and overseas study tour services. As of May 31, 2021, it offered educational programs, services, and products to students through a network of 122 schools, 1,547 learning centers, and 11 bookstores, as well as through its online learning platforms. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

Sector: Consumer Defensive 路 Industry: Education & Training Services

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap11.2% / 30.0%

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: FY 2025Source: FMP

Financial Overview

Market Cap

7.5B

Price

$47.19

Sector

Consumer Defensive

Industry

Education & Training Services

Halal Alternatives in Consumer Defensive

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Frequently Asked Questions

Is New Oriental Education & Technology Group Inc. (EDU) halal to invest in?
New Oriental Education & Technology Group Inc. (EDU) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did New Oriental Education & Technology Group Inc. get a F compliance rating?
New Oriental Education & Technology Group Inc. (EDU) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 11.2% (limit 30%); interest-bearing deposits of 63.9% (limit 30%); prohibited income of 2.44% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change New Oriental Education & Technology Group Inc.'s Shariah verdict?
New Oriental Education & Technology Group Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is New Oriental Education & Technology Group Inc. re-screened for Shariah compliance?
New Oriental Education & Technology Group Inc. (EDU) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.