MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
NYSE:MNSO - US66981J1025 - ADR
24.52 USD
+0.15 (+0.62%)
24.53 USD
+0.01 (+0.04%)
We assign a fundamental rating of 7 out of 10 to MNSO. MNSO was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make MNSO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MNSO was profitable.
In the past year MNSO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MNSO reported negative net income in multiple years.
In the past 5 years MNSO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MNSO (14.45%) is better than 92.86% of its industry peers.
MNSO's Return On Equity of 25.38% is amongst the best of the industry. MNSO outperforms 85.71% of its industry peers.
MNSO's Return On Invested Capital of 20.80% is amongst the best of the industry. MNSO outperforms 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 11.00%.
The 3 year average ROIC (15.21%) for MNSO is below the current ROIC(20.80%), indicating increased profibility in the last year.
| 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.
MNSO has a Operating Margin of 19.56%. This is amongst the best in the industry. MNSO outperforms 92.86% of its industry peers.
In the last couple of years the Operating Margin of MNSO has grown nicely.
MNSO has a Gross Margin of 44.94%. This is comparable to the rest of the industry: MNSO outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of MNSO has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MNSO is creating value.
MNSO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MNSO has been increased compared to 5 years ago.
The debt/assets ratio for MNSO is higher compared to a year ago.
2.2 Solvency
MNSO has an Altman-Z score of 6.46. 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 6.46, MNSO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of MNSO is 2.21, which is a good value as it means it would take MNSO, 2.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MNSO (2.21) is better than 78.57% of its industry peers.
MNSO has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, MNSO is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 6.46 |
ROIC/WACC2.72
WACC7.66%
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.
MNSO has a better Current ratio (2.04) 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.
With a decent Quick ratio value of 1.55, MNSO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.63% over the past year.
Measured over the past years, MNSO shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.52% on average per year.
The Revenue has grown by 48.12% 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)19.63%
EPS 3Y73.52%
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)48.12%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
3.2 Future
MNSO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.85% yearly.
Based on estimates for the next years, MNSO will show a quite strong growth in Revenue. The Revenue will grow by 18.35% on average per year.
EPS Next Y1.26%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
EPS Next 5YN/A
Revenue Next Year20.61%
Revenue Next 2Y19.43%
Revenue Next 3Y18.35%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
MNSO is valuated rather expensively with a Price/Earnings ratio of 19.77.
Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than 71.43% of the companies in the same industry.
MNSO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.15, the valuation of MNSO can be described as correct.
Based on the Price/Forward 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/Forward Earnings ratio of MNSO to the average of the S&P500 Index (22.69), we can say MNSO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
67.86% of the companies in the same industry are more expensive than MNSO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MNSO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.05 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MNSO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MNSO may justify a higher PE ratio.
A more expensive valuation may be justified as MNSO's earnings are expected to grow with 15.85% in the coming years.
PEG (NY)15.72
PEG (5Y)N/A
EPS Next 2Y14.74%
EPS Next 3Y15.85%
5. Dividend
5.1 Amount
MNSO has a Yearly Dividend Yield of 2.53%.
Compared to an average industry Dividend Yield of 11.99, 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 2.32, MNSO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
MNSO pays out 47.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.53%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
24.52
+0.15 (+0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.31%
Inst Owner Change-16.72%
Ins Owners63.1%
Ins Owner ChangeN/A
Market Cap7.49B
Analysts84.17
Price Target21.55 (-12.11%)
Short Float %3.89%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend0.56
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)11.04%
PT rev (3m)5.99%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)-12.42%
EPS NY rev (3m)-13.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 15.15 | ||
| P/S | 3.15 | ||
| P/FCF | 38.05 | ||
| P/OCF | 24.67 | ||
| P/B | 5.19 | ||
| P/tB | 5.2 | ||
| EV/EBITDA | 10.38 |
EPS(TTM)1.24
EY5.06%
EPS(NY)1.62
Fwd EY6.6%
FCF(TTM)0.64
FCFY2.63%
OCF(TTM)0.99
OCFY4.05%
SpS7.79
BVpS4.73
TBVpS4.71
PEG (NY)15.72
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 | 6.46 |
F-Score4
WACC7.66%
ROIC/WACC2.72
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)19.63%
EPS 3Y73.52%
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y1.26%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
EPS Next 5YN/A
Revenue 1Y (TTM)48.12%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
Revenue Next Year20.61%
Revenue Next 2Y19.43%
Revenue Next 3Y18.35%
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%