NYSE:MNSO, a growth stock which is not overvalued.

Consider MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) as an affordable growth stock, identified by our stock screening tool. NYSE:MNSO is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of NYSE:MNSO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:MNSO has earned a 7 for growth:

• The Earnings Per Share has grown by an impressive 142.75% over the past year.
• Looking at the last year, MNSO shows a quite strong growth in Revenue. The Revenue has grown by 13.76% in the last year.
• The Revenue has been growing by 8.51% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 95.58% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 20.31% on average over the next years. This is a very strong growth
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at Valuation for NYSE:MNSO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:MNSO boasts a 5 out of 10:

• Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than 75.00% of the companies in the same industry.
• 65.63% of the companies in the same industry are more expensive than MNSO, based on the Price/Forward Earnings ratio.
• Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than 62.50% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• MNSO has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as MNSO's earnings are expected to grow with 95.58% in the coming years.

Health Analysis for NYSE:MNSO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:MNSO has earned a 8 out of 10:

• MNSO has an Altman-Z score of 8.42. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 8.42, MNSO belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
• MNSO has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 0.60, MNSO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
• MNSO has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.06, MNSO is doing good in the industry, outperforming 68.75% of the companies in the same industry.
• A Current Ratio of 2.55 indicates that MNSO has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.55, MNSO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• A Quick Ratio of 2.18 indicates that MNSO has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 2.18, MNSO belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MNSO has achieved a 8:

• MNSO has a better Return On Assets (13.15%) than 90.63% of its industry peers.
• MNSO's Return On Equity of 19.87% is amongst the best of the industry. MNSO outperforms 84.38% of its industry peers.
• MNSO has a better Return On Invested Capital (16.22%) than 90.63% of its industry peers.
• The last Return On Invested Capital (16.22%) for MNSO is above the 3 year average (9.40%), which is a sign of increasing profitability.
• MNSO has a better Profit Margin (15.42%) than 93.75% of its industry peers.
• The Operating Margin of MNSO (18.41%) is better than 93.75% of its industry peers.
• MNSO's Operating Margin has improved in the last couple of years.
• MNSO's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of MNSO contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.