For those who appreciate growth without the sticker shock, NYSE:MNSO is worth considering.

Last update: Apr 9, 2024

Our stock screening tool has pinpointed MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) as a growth stock that isn't overvalued. NYSE:MNSO is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Analysis 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 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.
Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 39.43%.
MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.79% on average per year.
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.

Assessing Valuation Metrics for NYSE:MNSO

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:MNSO has achieved a 6 out of 10:

Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
MNSO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.14, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than 63.64% of the companies in the same industry.
MNSO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
60.61% of the companies in the same industry are more expensive than MNSO, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 23.79% in the coming years.

Health Assessment of NYSE:MNSO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MNSO has received 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.
The Altman-Z score of MNSO (7.82) is better than 90.91% of its industry peers.
The Debt to FCF ratio of MNSO is 0.64, which is an excellent value as it means it would take MNSO, only 0.64 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.64, MNSO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that MNSO is not too dependend on debt financing.
MNSO has a better Debt to Equity ratio (0.09) 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.
MNSO's Current ratio of 2.34 is amongst the best of the industry. MNSO outperforms 81.82% of its industry peers.
The Quick ratio of MNSO (1.91) is better than 72.73% of its industry peers.

Understanding NYSE:MNSO's 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 15.56%, MNSO belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
With an excellent Return On Equity value of 24.58%, MNSO belongs to the best 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.
With an excellent Profit Margin value of 16.28%, MNSO belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
MNSO has a Operating Margin of 20.43%. This is amongst the best in the industry. MNSO outperforms 93.94% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of MNSO has grown nicely.

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.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.