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

MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) has caught the eye of our stock screener as an affordable growth stock. NYSE:MNSO is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

A Closer Look at 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 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.
• MNSO shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.43%.
• 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.
• Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 27.74% 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 24.45% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Assessment of 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 63.64% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 60.61% of the companies listed in the same industry.
• MNSO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 69.70% of the companies listed in the same industry.
• 60.61% of the companies in the same industry are more expensive than MNSO, based on the Price/Free Cash Flow ratio.
• MNSO's 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.
• A more expensive valuation may be justified as MNSO's earnings are expected to grow with 27.74% in the coming years.

Assessing Health for NYSE:MNSO

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 8.14 indicates that MNSO is not in any danger for bankruptcy at the moment.
• MNSO has a better Altman-Z score (8.14) than 90.91% of its industry peers.
• 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 better Debt to FCF ratio (0.64) than 81.82% of its industry peers.
• A Debt/Equity ratio of 0.09 indicates that MNSO is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.09, MNSO is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
• 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.
• Looking at the Current ratio, with a value of 2.34, MNSO belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
• MNSO has a Quick ratio of 1.91. This is in the better half of the industry: MNSO outperforms 75.76% of its industry peers.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MNSO has achieved a 8:

• Looking at the Return On Assets, with a value of 15.56%, MNSO belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
• The Return On Equity of MNSO (24.58%) is better than 84.85% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.61%, MNSO belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
• The 3 year average ROIC (9.40%) for MNSO is below the current ROIC(20.61%), indicating increased profibility in the last year.
• MNSO has a better Profit Margin (16.28%) than 93.94% of its industry peers.
• The Operating Margin of MNSO (20.43%) is better than 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.

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.

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.