NYSE:MNSO, a strong growth stock, setting up for a breakout.

Last update: Apr 9, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted MINISO GROUP HOLDING LTD-ADR showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Deciphering NYSE:MNSO's Growth Rating

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 8 out of 10:

MNSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.57%, which is quite impressive.
The Revenue has grown by 39.43% in the past year. This is a very strong growth!
Measured over the past years, MNSO shows a quite strong growth in Revenue. The Revenue has been growing by 8.51% on average per year.
The Earnings Per Share is expected to grow by 23.79% 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 24.45% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MNSO has earned a 8 out of 10:

An Altman-Z score of 7.82 indicates that MNSO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.82, MNSO belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
MNSO has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
MNSO has a Debt to FCF ratio of 0.64. This is amongst the best in the industry. MNSO outperforms 84.85% of its industry peers.
MNSO has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MNSO (0.09) is better than 69.70% of its industry peers.
MNSO has a Current Ratio of 2.34. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MNSO (2.34) is better than 81.82% of its industry peers.
With a decent Quick ratio value of 1.91, MNSO is doing good in the industry, outperforming 72.73% of the companies in the same industry.

Profitability Analysis for NYSE:MNSO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MNSO scores a 8 out of 10:

MNSO's Return On Assets of 15.56% is amongst the best of the industry. MNSO outperforms 93.94% of its industry peers.
Looking at the Return On Equity, with a value of 24.58%, MNSO belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.61%, MNSO belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
The last Return On Invested Capital (20.61%) for MNSO is above the 3 year average (9.40%), which is a sign of increasing profitability.
The Profit Margin of MNSO (16.28%) is better than 93.94% of its industry peers.
MNSO has a Operating Margin of 20.43%. This is amongst the best in the industry. MNSO outperforms 93.94% 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.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:MNSO this score is currently 8:

Besides having an excellent technical rating, MNSO also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 21.26. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for MNSO in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

For an up to date full technical analysis you can check the technical report of MNSO

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.