Despite its growth, NYSE:MNSO remains within the realm of affordability.

Last update: Mar 19, 2024

Take a closer look at MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO), an affordable growth stock uncovered by our stock screener. NYSE:MNSO boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Assessment of NYSE:MNSO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:MNSO boasts a 7 out of 10:

MNSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 142.10%, which is quite impressive.
Looking at the last year, MNSO shows a quite strong growth in Revenue. The Revenue has grown by 13.76% in the last year.
MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
The Earnings Per Share is expected to grow by 23.79% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 21.03% on average over the next years. This is a very strong growth
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Valuation for NYSE:MNSO?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:MNSO was assigned a score of 5 for valuation:

MNSO's Price/Earnings ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than 63.64% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MNSO is valued a bit cheaper than 60.61% 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 a very decent 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 23.79% in the coming years.

Unpacking NYSE:MNSO's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MNSO has earned a 9 out of 10:

An Altman-Z score of 8.21 indicates that MNSO is not in any danger for bankruptcy at the moment.
The Altman-Z score of MNSO (8.21) is better than 96.97% of its industry peers.
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 84.85% 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 69.70% of the companies in the same industry.
MNSO has a Current Ratio of 2.55. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
MNSO has a better Current ratio (2.55) than 84.85% of its industry peers.
MNSO has a Quick Ratio of 2.18. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
MNSO has a Quick ratio of 2.18. This is amongst the best in the industry. MNSO outperforms 81.82% of its industry peers.

Exploring NYSE:MNSO's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MNSO has earned a 7 out of 10:

MNSO has a Return On Assets of 13.15%. This is amongst the best in the industry. MNSO outperforms 93.94% of its industry peers.
MNSO's Return On Equity of 19.87% is fine compared to the rest of the industry. MNSO outperforms 78.79% of its industry peers.
The Return On Invested Capital of MNSO (17.10%) is better than 90.91% of its industry peers.
The last Return On Invested Capital (17.10%) for MNSO is above the 3 year average (9.40%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 15.42%, MNSO belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
MNSO has a better Operating Margin (19.41%) than 93.94% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of MNSO has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.