MINISO GROUP HOLDING LTD-ADR (MNSO)

US66981J1025 - ADR

20.425  +0.16 (+0.76%)

Fundamental Rating

7

MNSO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 34 industry peers in the Broadline Retail industry. MNSO gets an excellent profitability rating and is at the same time showing great financial health properties. MNSO is growing strongly while it is still valued neutral. This is a good combination! These ratings would make MNSO suitable for growth and quality investing!



7

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.
In multiple years MNSO reported negative net income over the last 5 years.
Each year in the past 5 years MNSO had a positive operating cash flow.

1.2 Ratios

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 has a Return On Equity of 19.87%. This is in the better half of the industry: MNSO outperforms 78.79% of its industry peers.
With an excellent Return On Invested Capital value of 17.10%, MNSO belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MNSO is in line with the industry average of 10.82%.
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.
Industry RankSector Rank
ROA 13.15%
ROE 19.87%
ROIC 17.1%
ROA(3y)1.86%
ROA(5y)-0.89%
ROE(3y)2.57%
ROE(5y)N/A
ROIC(3y)9.4%
ROIC(5y)17.46%

1.3 Margins

MNSO's Profit Margin of 15.42% is amongst the best of the industry. MNSO outperforms 93.94% of its industry peers.
With an excellent Operating Margin value of 19.41%, MNSO belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
MNSO's Operating Margin has improved in the last couple of years.
MNSO's Gross Margin of 38.73% is in line compared to the rest of the industry. MNSO outperforms 48.48% of its industry peers.
MNSO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 19.41%
PM (TTM) 15.42%
GM 38.73%
OM growth 3Y31.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.36%
GM growth 5YN/A

9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MNSO is creating value.
The number of shares outstanding for MNSO has been increased compared to 1 year ago.
The number of shares outstanding for MNSO has been reduced compared to 5 years ago.
Compared to 1 year ago, MNSO has a worse debt to assets ratio.

2.2 Solvency

MNSO has an Altman-Z score of 8.20. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
MNSO's Altman-Z score of 8.20 is amongst the best of the industry. MNSO outperforms 93.94% of its industry peers.
The Debt to FCF ratio of MNSO is 0.60, which is an excellent value as it means it would take MNSO, only 0.60 years of fcf income to pay off all of its debts.
MNSO's Debt to FCF ratio of 0.60 is amongst the best of the industry. MNSO outperforms 84.85% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that MNSO is not too dependend on debt financing.
The Debt to Equity ratio of MNSO (0.06) is better than 69.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.6
Altman-Z 8.2
ROIC/WACC2.02
WACC8.45%

2.3 Liquidity

A Current Ratio of 2.55 indicates that MNSO has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.55, MNSO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
A Quick Ratio of 2.18 indicates that MNSO has no problem at all paying its short term obligations.
MNSO has a better Quick ratio (2.18) than 81.82% of its industry peers.
Industry RankSector Rank
Current Ratio 2.55
Quick Ratio 2.18

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 142.10% over the past year.
The Revenue has grown by 13.76% in the past year. This is quite good.
The Revenue has been growing by 8.51% on average over the past years. This is quite good.
EPS 1Y (TTM)142.1%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q150%
Revenue 1Y (TTM)13.76%
Revenue growth 3Y8.51%
Revenue growth 5YN/A
Revenue growth Q2Q40.32%

3.2 Future

Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.79% on average per year.
MNSO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.03% yearly.
EPS Next Y35.47%
EPS Next 2Y27.98%
EPS Next 3Y23.79%
EPS Next 5YN/A
Revenue Next Year29.57%
Revenue Next 2Y24.3%
Revenue Next 3Y21.03%
Revenue Next 5YN/A

3.3 Evolution

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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.53 indicates a quite expensive valuation of MNSO.
Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than 69.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. MNSO is around the same levels.
The Price/Forward Earnings ratio is 18.80, which indicates a rather expensive current valuation of MNSO.
60.61% of the companies in the same industry are more expensive than MNSO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.74. MNSO is around the same levels.
Industry RankSector Rank
PE 25.53
Fwd PE 18.8

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 72.73% of the companies listed in the same industry.
MNSO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 31.16
EV/EBITDA 14.88

4.3 Compensation for Growth

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 23.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y27.98%
EPS Next 3Y23.79%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.27%, MNSO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.98, MNSO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MNSO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.27%

5.2 History

MNSO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

20.96% of the earnings are spent on dividend by MNSO. This is a low number and sustainable payout ratio.
DP20.96%
EPS Next 2Y27.98%
EPS Next 3Y23.79%

MINISO GROUP HOLDING LTD-ADR

NYSE:MNSO (3/28/2024, 1:31:08 PM)

20.425

+0.16 (+0.76%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.43B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 25.53
Fwd PE 18.8
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 13.15%
ROE 19.87%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.41%
PM (TTM) 15.42%
GM 38.73%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.55
Quick Ratio 2.18
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)142.1%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y35.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.76%
Revenue growth 3Y8.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y