In the world of growth stocks, MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) shines as a value proposition.

Last update: Mar 5, 2025

Our stock screener has singled out MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) as an attractive growth opportunity. NYSE:MNSO is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:MNSO has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 69.24% over the past year.
MNSO shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.06%.
MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
MNSO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.52% yearly.
The Revenue is expected to grow by 29.10% 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.

A Closer Look at Valuation for NYSE:MNSO

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 5 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 61.29% of the companies listed in the same industry.
MNSO is valuated rather cheaply when we compare the Price/Earnings ratio to 29.41, which is the current average of the S&P500 Index.
MNSO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.12, which is the current average of the S&P500 Index.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MNSO may justify a higher PE ratio.
MNSO's earnings are expected to grow with 32.52% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NYSE:MNSO

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 7 out of 10:

An Altman-Z score of 7.04 indicates that MNSO is not in any danger for bankruptcy at the moment.
MNSO has a Altman-Z score of 7.04. This is amongst the best in the industry. MNSO outperforms 93.55% of its industry peers.
MNSO has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
MNSO has a better Debt to Equity ratio (0.15) than 64.52% of its industry peers.
MNSO has a Current Ratio of 2.38. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
MNSO's Current ratio of 2.38 is amongst the best of the industry. MNSO outperforms 83.87% of its industry peers.
Looking at the Quick ratio, with a value of 1.93, MNSO is in the better half of the industry, outperforming 77.42% of the companies in the same industry.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MNSO, the assigned 7 is a significant indicator of profitability:

MNSO has a better Return On Assets (15.39%) than 93.55% of its industry peers.
MNSO has a Return On Equity of 24.94%. This is amongst the best in the industry. MNSO outperforms 80.65% of its industry peers.
MNSO has a Return On Invested Capital of 19.84%. This is amongst the best in the industry. MNSO outperforms 90.32% of its industry peers.
The last Return On Invested Capital (19.84%) for MNSO is above the 3 year average (9.40%), which is a sign of increasing profitability.
MNSO's Profit Margin of 15.71% is amongst the best of the industry. MNSO outperforms 93.55% of its industry peers.
With an excellent Operating Margin value of 19.87%, MNSO belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
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.

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

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

Disclaimer

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.