NYSE:MNSO, a strong growth stock, setting up for a breakout.

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.

Understanding NYSE:MNSO's Growth Score

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!
• The Revenue has been growing by 8.51% on average over the past years. This is quite good.
• Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 33.51% 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 28.54% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Health: NYSE:MNSO

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:

• MNSO has an Altman-Z score of 8.16. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 8.16, MNSO belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
• 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.
• The Debt to FCF ratio of MNSO (0.64) is better 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.
• 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 81.25% of the companies in the same industry.
• MNSO's Quick ratio of 1.91 is fine compared to the rest of the industry. MNSO outperforms 75.00% of its industry peers.

Understanding NYSE:MNSO's Profitability

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:

• 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.
• Looking at the Profit Margin, with a value of 16.28%, MNSO belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
• The Operating Margin of MNSO (20.43%) is better than 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.

How do we evaluate the setup 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.

Although the technical rating is only medium, MNSO does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 22.13, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of MNSO

For an up to date full technical analysis you can check the technical report of MNSO

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.