MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
USA - NYSE:MNSO - US66981J1025 - ADR
22.26 USD
-0.03 (-0.13%)
22.38 USD
+0.12 (+0.54%)
Overall MNSO gets a fundamental rating of 6 out of 10. We evaluated MNSO against 28 industry peers in the Broadline Retail industry. MNSO scores excellent on profitability, but there are some minor concerns on its financial health. 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 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.
In multiple years MNSO reported negative net income over the last 5 years.
MNSO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MNSO has a Return On Assets of 8.83%. This is amongst the best in the industry. MNSO outperforms 82.14% of its industry peers.
Looking at the Return On Equity, with a value of 21.69%, MNSO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
MNSO has a better Return On Invested Capital (13.11%) than 82.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MNSO is above the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 21.69% | ||
| ROIC | 13.11% |
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
Looking at the Profit Margin, with a value of 12.63%, MNSO belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
With an excellent Operating Margin value of 18.18%, MNSO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
MNSO's Operating Margin has improved in the last couple of years.
MNSO's Gross Margin of 45.12% is fine compared to the rest of the industry. MNSO outperforms 60.71% of its industry peers.
In the last couple of years the Gross Margin of MNSO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.18% | ||
| PM (TTM) | 12.63% | ||
| GM | 45.12% |
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
MNSO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MNSO has less shares outstanding
Compared to 5 years ago, MNSO has more shares outstanding
Compared to 1 year ago, MNSO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that MNSO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, MNSO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
The Debt to FCF ratio of MNSO is 10.42, which is on the high side as it means it would take MNSO, 10.42 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.42, MNSO perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
MNSO has a Debt/Equity ratio of 0.72. This is a neutral value indicating MNSO is somewhat dependend on debt financing.
MNSO's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. MNSO is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.42 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.67
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.92 indicates that MNSO should not have too much problems paying its short term obligations.
MNSO has a Current ratio of 1.92. This is in the better half of the industry: MNSO outperforms 64.29% of its industry peers.
A Quick Ratio of 1.50 indicates that MNSO should not have too much problems paying its short term obligations.
MNSO has a Quick ratio of 1.50. This is in the better half of the industry: MNSO outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.5 |
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 73.50% on average per year.
MNSO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.03%.
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)19.63%
EPS 3Y73.5%
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)21.03%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
3.2 Future
The Earnings Per Share is expected to grow by 15.85% on average over the next years. This is quite good.
Based on estimates for the next years, MNSO will show a quite strong growth in Revenue. The Revenue will grow by 19.59% on average per year.
EPS Next Y1.26%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
EPS Next 5YN/A
Revenue Next Year23.42%
Revenue Next 2Y21.2%
Revenue Next 3Y19.59%
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
Based on the Price/Earnings ratio of 17.95, the valuation of MNSO can be described as rather expensive.
Compared to the rest of the industry, the Price/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/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
MNSO is valuated correctly with a Price/Forward Earnings ratio of 13.73.
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.
When comparing the Price/Forward Earnings ratio of MNSO to the average of the S&P500 Index (22.89), we can say MNSO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 13.73 |
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 71.43% of the companies listed 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 | 48.73 | ||
| EV/EBITDA | 12.17 |
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)14.27
PEG (5Y)N/A
EPS Next 2Y14.74%
EPS Next 3Y15.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, MNSO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.02, MNSO pays a better dividend. On top of this MNSO pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MNSO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 56.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP56.42%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
22.26
-0.03 (-0.13%)
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 Cap6.80B
Analysts85.83
Price Target26.26 (17.97%)
Short Float %4.99%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP56.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.45%
Min EPS beat(2)2.4%
Max EPS beat(2)52.51%
EPS beat(4)3
Avg EPS beat(4)13.25%
Min EPS beat(4)-5.58%
Max EPS beat(4)52.51%
EPS beat(8)6
Avg EPS beat(8)6.97%
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)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-5%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.23%
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)28.4%
PT rev (3m)42%
EPS NQ rev (1m)12.22%
EPS NQ rev (3m)-11.04%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)3.2%
Revenue NQ rev (3m)4.63%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 13.73 | ||
| P/S | 2.6 | ||
| P/FCF | 48.73 | ||
| P/OCF | 25.65 | ||
| P/B | 4.46 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 12.17 |
EPS(TTM)1.24
EY5.57%
EPS(NY)1.62
Fwd EY7.29%
FCF(TTM)0.46
FCFY2.05%
OCF(TTM)0.87
OCFY3.9%
SpS8.56
BVpS4.99
TBVpS4.96
PEG (NY)14.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 21.69% | ||
| ROCE | 16.91% | ||
| ROIC | 13.11% | ||
| ROICexc | 20.89% | ||
| ROICexgc | 20.98% | ||
| OM | 18.18% | ||
| PM (TTM) | 12.63% | ||
| GM | 45.12% | ||
| FCFM | 5.34% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.42 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 110.61% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.02% | ||
| Profit Quality | 42.25% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.6 |
F-Score4
WACC7.84%
ROIC/WACC1.67
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 3Y73.5%
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)21.03%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
Revenue Next Year23.42%
Revenue Next 2Y21.2%
Revenue Next 3Y19.59%
Revenue Next 5YN/A
EBIT growth 1Y10.76%
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%