Investors seeking growth at a reasonable cost should explore NYSE:MNSO.

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.

What does the Growth looks like 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 183.31%, which is quite impressive.
• Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 38.61%.
• MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
• The Earnings Per Share is expected to grow by 33.51% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 28.54% 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.

Deciphering NYSE:MNSO's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:MNSO boasts 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 the industry average as 65.63% of the companies are valued more expensively.
• MNSO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.06.
• Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than 65.63% of the companies in the same industry.
• 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.
• MNSO's earnings are expected to grow with 33.51% in the coming years. This may justify a more expensive valuation.

Health Assessment of NYSE:MNSO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MNSO, the assigned 8 reflects its health status:

• MNSO has an Altman-Z score of 8.06. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
• MNSO has a better Altman-Z score (8.06) 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's Debt to FCF ratio of 0.64 is amongst the best of the industry. MNSO outperforms 84.38% 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 has a Debt to Equity ratio of 0.09. This is in the better half of the industry: MNSO outperforms 71.88% of its industry peers.
• A Current Ratio of 2.34 indicates that MNSO has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.34, MNSO belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
• The Quick ratio of MNSO (1.91) is better than 78.13% of its industry peers.

Evaluating Profitability: NYSE:MNSO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:MNSO, the assigned 8 is noteworthy for profitability:

• With an excellent Return On Assets value of 15.56%, MNSO belongs to the best of the industry, outperforming 93.75% 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 84.38% of the companies in the same industry.
• The Return On Invested Capital of MNSO (20.61%) is better than 93.75% of its industry peers.
• The 3 year average ROIC (9.40%) for MNSO is below the current ROIC(20.61%), indicating increased profibility in the last year.
• MNSO's Profit Margin of 16.28% is amongst the best of the industry. MNSO outperforms 93.75% of its industry peers.
• MNSO has a Operating Margin of 20.43%. This is amongst the best in the industry. MNSO outperforms 93.75% of its industry peers.
• In the last couple of years the Operating Margin of MNSO has grown nicely.
• 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 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.