MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
USA - NYSE:MNSO - US66981J1025 - ADR
22.05 USD
-0.3 (-1.34%)
21.99 USD
-0.06 (-0.27%)
MNSO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. MNSO has an excellent profitability rating, but there are some minor concerns on its financial health. MNSO is growing strongly while it is still valued neutral. This is a good combination! With these ratings, MNSO could be worth investigating further for growth 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.
Each year in the past 5 years MNSO had a positive operating cash flow.
1.2 Ratios
MNSO has a Return On Assets of 8.83%. This is amongst the best in the industry. MNSO outperforms 83.33% 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 86.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.11%, MNSO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
MNSO had an Average Return On Invested Capital over the past 3 years of 15.21%. This is above the industry average of 10.42%.
| 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
With an excellent Profit Margin value of 12.63%, MNSO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
MNSO has a better Operating Margin (18.18%) than 93.33% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.12%, MNSO is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
MNSO's Gross Margin has improved in the last couple of years.
| 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
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.
MNSO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MNSO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.57 indicates that MNSO is not in any danger for bankruptcy at the moment.
MNSO has a Altman-Z score of 3.57. This is comparable to the rest of the industry: MNSO outperforms 60.00% of its industry peers.
MNSO has a debt to FCF ratio of 10.42. This is a negative value and a sign of low solvency as MNSO would need 10.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.42, MNSO is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that MNSO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, MNSO is doing worse than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.42 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.76
WACC7.44%
2.3 Liquidity
MNSO has a Current Ratio of 1.92. 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 better Current ratio (1.92) than 66.67% 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 70.00% 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 73.74% on average per year.
Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 21.03%.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)19.63%
EPS 3Y73.74%
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
Based on estimates for the next years, MNSO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.60% on average per year.
The Revenue is expected to grow by 19.50% on average over the next years. This is quite good.
EPS Next Y3.01%
EPS Next 2Y13.12%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue Next Year23.44%
Revenue Next 2Y21.16%
Revenue Next 3Y19.5%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.64 indicates a rather expensive valuation of MNSO.
Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than 80.00% of the companies in the same industry.
MNSO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.93, which indicates a correct valuation of MNSO.
Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MNSO to the average of the S&P500 Index (22.94), we can say MNSO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
MNSO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.06 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MNSO may justify a higher PE ratio.
MNSO's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.86
PEG (5Y)N/A
EPS Next 2Y13.12%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.70%, MNSO has a reasonable but not impressive dividend return.
MNSO's Dividend Yield is rather good when compared to the industry average which is at 9.75. MNSO pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MNSO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
56.42% of the earnings are spent on dividend by MNSO. This is a bit on the high side, but may be sustainable.
DP56.42%
EPS Next 2Y13.12%
EPS Next 3Y15.6%
22.05
-0.3 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.16%
Inst Owner Change0%
Ins Owners63.54%
Ins Owner ChangeN/A
Market Cap6.71B
Analysts85.83
Price Target23.83 (8.07%)
Short Float %5.22%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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)-9.25%
PT rev (3m)22.66%
EPS NQ rev (1m)4.07%
EPS NQ rev (3m)16.98%
EPS NY rev (1m)2.16%
EPS NY rev (3m)-10.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 13.93 | ||
| P/S | 2.57 | ||
| P/FCF | 48.06 | ||
| P/OCF | 25.3 | ||
| P/B | 4.4 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 12 |
EPS(TTM)1.25
EY5.67%
EPS(NY)1.58
Fwd EY7.18%
FCF(TTM)0.46
FCFY2.08%
OCF(TTM)0.87
OCFY3.95%
SpS8.6
BVpS5.01
TBVpS4.98
PEG (NY)5.86
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 | 3.57 |
F-Score4
WACC7.44%
ROIC/WACC1.76
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 3Y73.74%
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y3.01%
EPS Next 2Y13.12%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue 1Y (TTM)21.03%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
Revenue Next Year23.44%
Revenue Next 2Y21.16%
Revenue Next 3Y19.5%
Revenue Next 5YN/A
EBIT growth 1Y10.76%
EBIT growth 3Y99.85%
EBIT growth 5Y25.86%
EBIT Next Year24.93%
EBIT Next 3Y22.47%
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%