In the world of growth stocks, NYSE:MNSO shines as a value proposition.

Last update: Nov 23, 2023

MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) was identified as an affordable growth stock by our stock screener. NYSE:MNSO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

How We Gauge Growth for NYSE:MNSO

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:MNSO has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 142.41% over the past year.
Looking at the last year, MNSO shows a quite strong growth in Revenue. The Revenue has grown by 13.76% in the last year.
The Revenue has been growing by 8.51% on average over the past years. This is quite good.
Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 94.93% on average per year.
Based on estimates for the next years, MNSO will show a very strong growth in Revenue. The Revenue will grow by 20.18% on average per year.
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.

How do we evaluate the Valuation for NYSE:MNSO?

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:MNSO, the assigned 4 reflects its valuation:

MNSO's Price/Earnings ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 73.53% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than 64.71% of the companies in the same industry.
MNSO has an outstanding profitability rating, which may justify a higher PE ratio.
MNSO's earnings are expected to grow with 94.93% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:MNSO has earned a 9 out of 10:

MNSO has an Altman-Z score of 9.20. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
MNSO has a better Altman-Z score (9.20) than 97.06% 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 has a better Debt to FCF ratio (0.60) than 88.24% of its industry peers.
MNSO has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MNSO (0.06) is better than 64.71% of its industry peers.
A Current Ratio of 2.55 indicates that MNSO has no problem at all paying its short term obligations.
MNSO has a Current ratio of 2.55. This is amongst the best in the industry. MNSO outperforms 91.18% of its industry peers.
A Quick Ratio of 2.18 indicates that MNSO has no problem at all paying its short term obligations.
The Quick ratio of MNSO (2.18) is better than 88.24% of its industry peers.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MNSO was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 13.15%, MNSO belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
The Return On Equity of MNSO (19.87%) is better than 85.29% of its industry peers.
With an excellent Return On Invested Capital value of 16.22%, MNSO belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
The last Return On Invested Capital (16.22%) for MNSO is above the 3 year average (9.40%), which is a sign of increasing profitability.
The Profit Margin of MNSO (15.42%) is better than 94.12% of its industry peers.
With an excellent Operating Margin value of 18.41%, MNSO belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
MNSO's Operating Margin has improved in the last couple of years.
MNSO's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of MNSO contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.