While growth is established for NYSE:MNSO, the stock's valuation remains reasonable.

Last update: Jan 1, 2024

Take a closer look at MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO), an affordable growth stock uncovered by our stock screener. NYSE:MNSO boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How do we evaluate the Growth for NYSE:MNSO?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:MNSO has achieved a 7 out of 10:

The Earnings Per Share has grown by an impressive 142.70% over the past year.
MNSO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.76%.
MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
The Earnings Per Share is expected to grow by 95.58% on average over the next years. This is a very strong growth
MNSO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.31% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Valuation looks like for NYSE:MNSO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:MNSO has received a 5 out of 10:

75.00% of the companies in the same industry are more expensive than MNSO, based on the Price/Earnings ratio.
65.63% of the companies in the same industry are more expensive than MNSO, based on the Price/Forward Earnings ratio.
Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
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.
MNSO's earnings are expected to grow with 95.58% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:MNSO

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MNSO scores a 8 out of 10:

MNSO has an Altman-Z score of 8.11. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MNSO (8.11) is better than 96.88% of its industry peers.
MNSO has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.60, MNSO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
MNSO has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, MNSO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
MNSO has a Current Ratio of 2.55. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.55, MNSO belongs to the best of the industry, outperforming 87.50% 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.
With an excellent Quick ratio value of 2.18, MNSO belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.

Evaluating Profitability: NYSE:MNSO

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:

Looking at the Return On Assets, with a value of 13.15%, MNSO belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.87%, MNSO belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
MNSO has a better Return On Invested Capital (16.22%) than 90.63% of its industry peers.
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.
MNSO's Profit Margin of 15.42% is amongst the best of the industry. MNSO outperforms 93.75% of its industry peers.
MNSO's Operating Margin of 18.41% is amongst the best of the industry. MNSO outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of MNSO has grown nicely.
MNSO's Gross Margin has improved in the last couple of years.

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

Check the latest full fundamental report of MNSO for a complete fundamental analysis.

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.