For those who appreciate value investing, NYSE:MNSO is a compelling option with its solid fundamentals.

Last update: Jun 14, 2024

Discover MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO), an undervalued stock highlighted by our stock screener. NYSE:MNSO showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Understanding NYSE:MNSO's Valuation

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:

With a Price/Earnings ratio of 11.51, the valuation of MNSO can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MNSO to the average of the S&P500 Index (28.56), we can say MNSO is valued rather cheaply.
MNSO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 62.50% of the companies in the same industry.
MNSO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.00.
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.

Profitability Assessment of 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:

MNSO's Return On Assets of 15.56% is amongst the best of the industry. MNSO outperforms 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 81.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.61%, MNSO belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
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 better Profit Margin (16.28%) than 93.75% of its industry peers.
MNSO has a better Operating Margin (20.43%) than 93.75% 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.

Health Analysis 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:

MNSO has an Altman-Z score of 7.79. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MNSO (7.79) is better than 87.50% 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.
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.
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.
MNSO has a better Current ratio (2.34) than 81.25% of its industry peers.
The Quick ratio of MNSO (1.91) is better than 75.00% of its industry peers.

How We Gauge 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 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.
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.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.