NYSE:MNSO is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: May 23, 2024

Uncover the hidden value in MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) as our stock screening tool recommends it as an undervalued choice. NYSE:MNSO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Looking at the Valuation

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 7 out of 10:

MNSO's Price/Earnings ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 71.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of MNSO to the average of the S&P500 Index (28.49), we can say MNSO is valued rather cheaply.
Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.06, MNSO is valued a bit cheaper.
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.
A more expensive valuation may be justified as MNSO's earnings are expected to grow with 33.51% in the coming years.

Understanding NYSE:MNSO's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MNSO, the assigned 8 is a significant indicator of profitability:

MNSO has a better Return On Assets (15.56%) than 93.75% 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 84.38% of the companies in the same industry.
MNSO has a better Return On Invested Capital (20.61%) than 93.75% 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.
The Profit Margin of MNSO (16.28%) is better than 93.75% of its industry peers.
With an excellent Operating Margin value of 20.43%, MNSO belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
MNSO's Operating Margin has improved in the last couple of years.
MNSO's Gross Margin has improved in the last couple of years.

Understanding NYSE:MNSO's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:MNSO was assigned a score of 8 for health:

An Altman-Z score of 8.06 indicates that MNSO is not in any danger for bankruptcy at the moment.
The Altman-Z score of MNSO (8.06) is better than 90.63% 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 84.38% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that MNSO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.09, MNSO is doing good in the industry, outperforming 71.88% of the companies in the same industry.
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 84.38% of its industry peers.
The Quick ratio of MNSO (1.91) is better than 78.13% of its industry peers.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:MNSO scores a 8 out of 10:

MNSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 183.31%, which is quite impressive.
The Revenue has grown by 38.61% 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.
MNSO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.51% yearly.
MNSO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.54% yearly.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value 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. 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.