MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
NYSE:MNSO - New York Stock Exchange, Inc. - US66981J1025 - ADR - Currency: USD
MNSO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. MNSO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MNSO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make MNSO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
MNSO had positive earnings in the past year.
MNSO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MNSO reported negative net income in multiple years.
Each year in the past 5 years MNSO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.45%, MNSO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
MNSO's Return On Equity of 25.38% is amongst the best of the industry. MNSO outperforms 85.71% of its industry peers.
The Return On Invested Capital of MNSO (20.80%) is better than 96.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MNSO is above the industry average of 11.32%.
The last Return On Invested Capital (20.80%) for MNSO is above the 3 year average (15.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.45% | ||
| ROE | 25.38% | ||
| ROIC | 20.8% |
ROA(3y)11.09%
ROA(5y)3.11%
ROE(3y)18.11%
ROE(5y)N/A
ROIC(3y)15.21%
ROIC(5y)14.47%
1.3 Margins
The Profit Margin of MNSO (15.40%) is better than 92.86% of its industry peers.
Looking at the Operating Margin, with a value of 19.56%, MNSO belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of MNSO has grown nicely.
MNSO has a Gross Margin (44.94%) which is comparable to the rest of the industry.
MNSO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.56% | ||
| PM (TTM) | 15.4% | ||
| GM | 44.94% |
OM growth 3Y62.12%
OM growth 5Y11.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.81%
GM growth 5Y10.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MNSO is creating value.
Compared to 1 year ago, MNSO has less shares outstanding
Compared to 5 years ago, MNSO has more shares outstanding
MNSO has a worse debt/assets ratio than last year.
2.2 Solvency
MNSO has an Altman-Z score of 5.66. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MNSO (5.66) is better than 75.00% of its industry peers.
MNSO has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as MNSO would need 2.21 years to pay back of all of its debts.
MNSO has a better Debt to FCF ratio (2.21) than 71.43% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that MNSO is not too dependend on debt financing.
MNSO has a better Debt to Equity ratio (0.18) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 5.66 |
ROIC/WACC2.7
WACC7.7%
2.3 Liquidity
MNSO has a Current Ratio of 2.04. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MNSO (2.04) is better than 71.43% of its industry peers.
MNSO has a Quick Ratio of 1.55. This is a normal value and indicates that MNSO is financially healthy and should not expect problems in meeting its short term obligations.
MNSO has a Quick ratio of 1.55. This is in the better half of the industry: MNSO outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
MNSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.90%, which is quite impressive.
Measured over the past years, MNSO shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.50% on average per year.
The Revenue has grown by 21.15% in the past year. This is a very strong growth!
Measured over the past years, MNSO shows a quite strong growth in Revenue. The Revenue has been growing by 12.59% on average per year.
EPS 1Y (TTM)31.9%
EPS 3Y73.5%
EPS 5YN/A
EPS Q2Q%-7.84%
Revenue 1Y (TTM)21.15%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%16.77%
3.2 Future
The Earnings Per Share is expected to grow by 19.54% on average over the next years. This is quite good.
MNSO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.22% yearly.
EPS Next Y15.65%
EPS Next 2Y19.65%
EPS Next 3Y19.54%
EPS Next 5YN/A
Revenue Next Year20.69%
Revenue Next 2Y19.38%
Revenue Next 3Y18.22%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.44, which indicates a correct valuation of MNSO.
Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.87, MNSO is valued a bit cheaper.
MNSO is valuated reasonably with a Price/Forward Earnings ratio of 11.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 75.00% of the companies listed in the same industry.
MNSO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 75.00% of the companies listed in the same industry.
MNSO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.76 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
MNSO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of MNSO may justify a higher PE ratio.
MNSO's earnings are expected to grow with 19.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y19.65%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, MNSO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 15.06, MNSO pays a better dividend. On top of this MNSO pays more dividend than 82.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, MNSO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
MNSO has been paying a dividend for over 5 years, so it has already some track record.
MNSO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
47.53% of the earnings are spent on dividend by MNSO. This is a bit on the high side, but may be sustainable.
DP47.53%
EPS Next 2Y19.65%
EPS Next 3Y19.54%
19.73
+0.21 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.31%
Inst Owner Change-6.75%
Ins Owners63.1%
Ins Owner ChangeN/A
Market Cap6.03B
Analysts84.17
Price Target20.45 (3.65%)
Short Float %5.44%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.55
Dividend Growth(5Y)N/A
DP47.53%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-5.58%
Max EPS beat(2)3.7%
EPS beat(4)2
Avg EPS beat(4)-11.71%
Min EPS beat(4)-56.08%
Max EPS beat(4)11.11%
EPS beat(8)6
Avg EPS beat(8)13.71%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-5%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-5%
Max Revenue beat(4)-0.86%
Revenue beat(8)4
Avg Revenue beat(8)3.45%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.28%
PT rev (3m)9.41%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 11.26 | ||
| P/S | 2.54 | ||
| P/FCF | 30.76 | ||
| P/OCF | 19.94 | ||
| P/B | 4.19 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)1.2
EY6.08%
EPS(NY)1.75
Fwd EY8.88%
FCF(TTM)0.64
FCFY3.25%
OCF(TTM)0.99
OCFY5.01%
SpS7.75
BVpS4.71
TBVpS4.69
PEG (NY)1.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.45% | ||
| ROE | 25.38% | ||
| ROCE | 26.83% | ||
| ROIC | 20.8% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 19.56% | ||
| PM (TTM) | 15.4% | ||
| GM | 44.94% | ||
| FCFM | 8.27% |
ROA(3y)11.09%
ROA(5y)3.11%
ROE(3y)18.11%
ROE(5y)N/A
ROIC(3y)15.21%
ROIC(5y)14.47%
ROICexc(3y)50.75%
ROICexc(5y)N/A
ROICexgc(3y)51.79%
ROICexgc(5y)N/A
ROCE(3y)19.61%
ROCE(5y)18.67%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-56.57%
ROICexc growth 3YN/A
ROICexc growth 5Y-46.7%
OM growth 3Y62.12%
OM growth 5Y11.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.81%
GM growth 5Y10.95%
F-Score4
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 94.29% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.46% | ||
| Profit Quality | 53.71% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 5.66 |
F-Score4
WACC7.7%
ROIC/WACC2.7
Cap/Depr(3y)71.07%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.96%
Cap/Sales(5y)2.3%
Profit Quality(3y)104.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.9%
EPS 3Y73.5%
EPS 5YN/A
EPS Q2Q%-7.84%
EPS Next Y15.65%
EPS Next 2Y19.65%
EPS Next 3Y19.54%
EPS Next 5YN/A
Revenue 1Y (TTM)21.15%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%16.77%
Revenue Next Year20.69%
Revenue Next 2Y19.38%
Revenue Next 3Y18.22%
Revenue Next 5YN/A
EBIT growth 1Y17.58%
EBIT growth 3Y99.85%
EBIT growth 5Y25.86%
EBIT Next Year36.75%
EBIT Next 3Y24.46%
EBIT Next 5YN/A
FCF growth 1Y-5.77%
FCF growth 3Y24.07%
FCF growth 5Y8.79%
OCF growth 1Y30.15%
OCF growth 3Y33.26%
OCF growth 5Y15.86%