In the world of growth stocks, NYSE:MNSO shines as a value proposition.

Discover MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO), an undervalued growth gem identified by our stock screener. NYSE:MNSO is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Assessing Growth Metrics for NYSE:MNSO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:MNSO boasts a 8 out of 10:

• MNSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 178.59%, which is quite impressive.
• Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 22.67%.
• 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.
• The Earnings Per Share is expected to grow by 32.39% on average over the next years. This is a very strong growth
• MNSO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.93% 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.

How do we evaluate the Valuation for NYSE:MNSO?

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:MNSO has received a 5 out of 10:

• The average S&P500 Price/Earnings ratio is at 29.61. MNSO is valued rather cheaply when compared to this.
• The average S&P500 Price/Forward Earnings ratio is at 24.09. MNSO is valued slightly cheaper when compared to this.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• MNSO has a very decent profitability rating, which may justify a higher PE ratio.
• MNSO's earnings are expected to grow with 32.39% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for 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 6 reflects its health status:

• An Altman-Z score of 8.13 indicates that MNSO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 8.13, MNSO belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
• MNSO has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of MNSO (0.15) is better than 65.63% of its industry peers.
• A Current Ratio of 2.38 indicates that MNSO has no problem at all paying its short term obligations.
• MNSO has a better Current ratio (2.38) than 78.13% of its industry peers.
• The Quick ratio of MNSO (1.93) is better than 75.00% of its industry peers.

What does the Profitability looks like for NYSE:MNSO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MNSO was assigned a score of 7 for profitability:

• MNSO has a Return On Assets of 15.39%. This is amongst the best in the industry. MNSO outperforms 93.75% of its industry peers.
• The Return On Equity of MNSO (24.94%) is better than 78.13% of its industry peers.
• MNSO's Return On Invested Capital of 19.84% is amongst the best of the industry. MNSO outperforms 90.63% of its industry peers.
• The 3 year average ROIC (9.40%) for MNSO is below the current ROIC(19.84%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 15.71%, MNSO belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• MNSO has a Operating Margin of 19.87%. 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.
• MNSO's Gross Margin has improved in the last couple of years.

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.

Keep in mind

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.