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

Here's MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) for you, a growth stock our stock screener believes is undervalued. NYSE:MNSO is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Assessing Growth for NYSE:MNSO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:MNSO, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 178.16% over the past year.
• MNSO shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.06%.
• 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 31.83% 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 28.93% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:MNSO's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:MNSO was assigned a score of 5 for valuation:

• MNSO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
• 62.50% of the companies in the same industry are more expensive than MNSO, based on the Price/Forward Earnings ratio.
• MNSO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
• MNSO's 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 31.83% in the coming years. This may justify a more expensive valuation.

Health Analysis for 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 6 out of 10:

• An Altman-Z score of 8.09 indicates that MNSO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of MNSO (8.09) is better than 93.75% of its industry peers.
• MNSO has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.15, MNSO is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
• MNSO has a Current Ratio of 2.38. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of MNSO (2.38) is better than 78.13% of its industry peers.
• Looking at the Quick ratio, with a value of 1.93, MNSO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.

Analyzing Profitability Metrics

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 7 is noteworthy 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.
• MNSO has a Return On Equity of 24.94%. This is in the better half of the industry: MNSO outperforms 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 last Return On Invested Capital (19.84%) for MNSO is above the 3 year average (9.40%), which is a sign of increasing profitability.
• MNSO's Profit Margin of 15.71% is amongst the best of the industry. MNSO outperforms 93.75% of its industry peers.
• Looking at the Operating Margin, with a value of 19.87%, MNSO belongs to the top 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.
• 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.

Our latest full fundamental report of MNSO contains the most current fundamental analsysis.

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.