NYSE:MNSO: a strong growth stock preparing for the next leg up?.

Last update: Jun 24, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted MINISO GROUP HOLDING LTD-ADR showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Understanding NYSE:MNSO's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:MNSO has earned a 8 for growth:

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%.
Measured over the past years, MNSO shows a quite strong growth in Revenue. The Revenue has been growing by 8.51% on average per year.
Based on estimates for the next years, MNSO will show a very strong growth in Earnings Per Share. The EPS will grow by 32.84% on average per year.
The Revenue is expected to grow by 28.97% on average over the next years. This is a very strong growth
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.

Health Assessment of NYSE:MNSO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MNSO has achieved a 8 out of 10:

MNSO has an Altman-Z score of 7.70. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.70, MNSO belongs to the best of the industry, outperforming 87.50% 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.
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's Debt to Equity ratio of 0.09 is fine compared to the rest 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.
MNSO's Quick ratio of 1.91 is fine compared to the rest of the industry. MNSO outperforms 75.00% of its industry peers.

Profitability Assessment of NYSE:MNSO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MNSO has earned a 8 out of 10:

MNSO has a Return On Assets of 15.56%. This is amongst the best in the industry. MNSO outperforms 93.75% of its industry peers.
MNSO has a better Return On Equity (24.58%) than 81.25% of its industry peers.
With an excellent Return On Invested Capital value of 20.61%, MNSO belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The 3 year average ROIC (9.40%) for MNSO is below the current ROIC(20.61%), indicating increased profibility in the last year.
MNSO has a better Profit Margin (16.28%) 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.
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.

How do we evaluate the setup for NYSE:MNSO?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:MNSO scores a 7 out of 10:

Although the technical rating is bad, MNSO does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 21.39. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.65, a Stop Loss order could be placed below this zone.

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

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

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

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.