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NYSE:MNSO—A High-Growth Stock Gearing Up for Its Next Upward Move.

By Mill Chart

Last update: May 7, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but MINISO GROUP HOLDING LTD-ADR has surfaced on our radar for growth with base formation, warranting further examination.

How We Gauge Growth for NYSE:MNSO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:MNSO, the assigned 8 reflects its growth potential:

  • The Earnings Per Share has grown by an impressive 107.57% over the past year.
  • The Revenue has grown by 39.43% in the past year. This is a very strong growth!
  • 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 27.74% on average per year.
  • The Revenue is expected to grow by 24.45% on average over the next years. This is a very strong growth
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Examination for NYSE:MNSO

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MNSO, the assigned 8 for health provides valuable insights:

  • MNSO has an Altman-Z score of 8.54. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
  • MNSO's Altman-Z score of 8.54 is amongst the best of the industry. MNSO outperforms 93.94% 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.
  • The Debt to FCF ratio of MNSO (0.64) is better than 81.82% 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.
  • MNSO's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. MNSO outperforms 69.70% of its industry peers.
  • A Current Ratio of 2.34 indicates that MNSO has no problem at all paying its short term obligations.
  • MNSO has a Current ratio of 2.34. This is amongst the best in the industry. MNSO outperforms 81.82% of its industry peers.
  • The Quick ratio of MNSO (1.91) is better than 75.76% of its industry peers.

Profitability Insights: 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:

  • 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.
  • 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.
  • MNSO has a Return On Invested Capital of 20.61%. This is amongst the best in the industry. MNSO outperforms 93.94% of its industry peers.
  • 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.
  • MNSO has a Profit Margin of 16.28%. This is amongst the best in the industry. MNSO outperforms 93.94% of its industry peers.
  • The Operating Margin of MNSO (20.43%) is better than 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.

How does the Setup look for NYSE:MNSO

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:MNSO currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

MNSO has an excellent technical rating and 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 24.04. 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. Another positive sign is the recent Pocket Pivot signal.

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

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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