Investors should take note of NYSE:MNSO, a growth stock that remains attractively priced.

Here's MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) for you, a growth stock our stock screener believes is undervalued. NYSE:MNSO is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Insights: NYSE:MNSO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:MNSO, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 183.31% over the past year.
• Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 38.61%.
• MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
• Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 33.51% on average per year.
• MNSO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.54% yearly.
• 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.

Unpacking NYSE:MNSO's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:MNSO scores a 7 out of 10:

• A Price/Earnings ratio of 11.74 indicates a reasonable valuation of MNSO.
• Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of MNSO to the average of the S&P500 Index (28.40), we can say MNSO is valued rather cheaply.
• MNSO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 62.50% of the companies in the same industry.
• MNSO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.03.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 65.63% of the companies listed 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.
• MNSO's earnings are expected to grow with 33.51% in the coming years. This may justify a more expensive valuation.

Assessing Health for NYSE:MNSO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MNSO, the assigned 8 reflects its health status:

• MNSO has an Altman-Z score of 7.90. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 7.90, MNSO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• The Debt to FCF ratio of MNSO is 0.64, which is an excellent value as it means it would take MNSO, only 0.64 years of fcf income to pay off all of its debts.
• MNSO has a Debt to FCF ratio of 0.64. This is amongst the best in the industry. MNSO outperforms 84.38% of its industry peers.
• MNSO has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of MNSO (0.09) is better than 71.88% of its industry peers.
• MNSO has a Current Ratio of 2.34. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of MNSO (2.34) is better than 81.25% of its industry peers.
• Looking at the Quick ratio, with a value of 1.91, MNSO is in the better half of the industry, outperforming 75.00% 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:

• With an excellent Return On Assets value of 15.56%, MNSO belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• MNSO has a better Return On Equity (24.58%) than 81.25% of its industry peers.
• MNSO has a Return On Invested Capital of 20.61%. This is amongst the best in the industry. MNSO outperforms 93.75% of its industry peers.
• The 3 year average ROIC (9.40%) for MNSO is below the current ROIC(20.61%), indicating increased profibility in the last year.
• MNSO has a better Profit Margin (16.28%) than 93.75% of its industry peers.
• MNSO's Operating Margin of 20.43% is amongst the best of the industry. MNSO outperforms 93.75% of its industry peers.
• In the last couple of years the Operating Margin of MNSO has grown nicely.
• In the last couple of years the Gross Margin of MNSO has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of MNSO for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. 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.