MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
NYSE:MNSO - New York Stock Exchange, Inc. - US66981J1025 - ADR - Currency: USD
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 evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make MNSO suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
MNSO had positive earnings in the past year.
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 better Return On Assets (14.45%) than 92.86% of its industry peers.
MNSO has a better Return On Equity (25.38%) than 85.71% of its industry peers.
MNSO has a Return On Invested Capital of 20.80%. This is amongst the best in the industry. MNSO outperforms 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MNSO is above the industry average of 11.59%.
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
With an excellent Profit Margin value of 15.40%, MNSO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Operating Margin of MNSO (19.56%) is better than 92.86% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MNSO is creating value.
The number of shares outstanding for MNSO has been reduced compared to 1 year ago.
The number of shares outstanding for MNSO has been increased compared to 5 years ago.
MNSO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.41 indicates that MNSO is not in any danger for bankruptcy at the moment.
The Altman-Z score of MNSO (5.41) is better than 82.14% of its industry peers.
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.
MNSO's Debt to FCF ratio of 2.21 is fine compared to the rest of the industry. MNSO outperforms 67.86% 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 | 5.41 |
ROIC/WACC2.66
WACC7.81%
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's Current ratio of 2.04 is fine compared to the rest of the industry. MNSO outperforms 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's Quick ratio of 1.55 is fine compared to the rest 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 86.78%, which is quite impressive.
MNSO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.34% yearly.
Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 21.15%.
MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.59% yearly.
EPS 1Y (TTM)86.78%
EPS 3Y73.34%
EPS 5YN/A
EPS Q2Q%167.55%
Revenue 1Y (TTM)21.15%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%15.56%
3.2 Future
Based on estimates for the next years, MNSO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.54% on average per year.
The Revenue is expected to grow by 19.06% on average over the next years. This is quite good.
EPS Next Y15.65%
EPS Next 2Y19.65%
EPS Next 3Y19.54%
EPS Next 5YN/A
Revenue Next Year22.12%
Revenue Next 2Y20.43%
Revenue Next 3Y19.06%
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
With a Price/Earnings ratio of 10.61, the valuation of MNSO can be described as very reasonable.
Based on the Price/Earnings ratio, MNSO is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, MNSO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.31, the valuation of MNSO can be described as reasonable.
Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. MNSO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
MNSO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 71.43% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MNSO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.15 | ||
| EV/EBITDA | 7.09 |
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.
MNSO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MNSO's earnings are expected to grow with 19.54% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y19.65%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
MNSO has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.83, MNSO pays a better dividend. On top of this MNSO pays more dividend than 82.14% of the companies listed in the same industry.
MNSO's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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%
18.03
-0.07 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.31%
Inst Owner Change-10.07%
Ins Owners63.1%
Ins Owner ChangeN/A
Market Cap5.53B
Analysts83.85
Price Target19.43 (7.76%)
Short Float %7.42%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-4.42%
PT rev (3m)-16.23%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-15.7%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-7.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 10.31 | ||
| P/S | 2.33 | ||
| P/FCF | 28.15 | ||
| P/OCF | 18.25 | ||
| P/B | 3.84 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)1.7
EY9.43%
EPS(NY)1.75
Fwd EY9.7%
FCF(TTM)0.64
FCFY3.55%
OCF(TTM)0.99
OCFY5.48%
SpS7.74
BVpS4.7
TBVpS4.69
PEG (NY)0.68
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 | 5.41 |
F-Score4
WACC7.81%
ROIC/WACC2.66
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)86.78%
EPS 3Y73.34%
EPS 5YN/A
EPS Q2Q%167.55%
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%15.56%
Revenue Next Year22.12%
Revenue Next 2Y20.43%
Revenue Next 3Y19.06%
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%