NYSE:MNSO, a growth stock which is not overvalued.

Our stock screener has singled out MINISO GROUP HOLDING LTD-ADR (NYSE:MNSO) as an attractive growth opportunity. NYSE:MNSO is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis 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:

• The Earnings Per Share has grown by an impressive 69.24% over the past year.
• Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 29.06%.
• The Revenue has been growing by 8.51% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 32.55% 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 28.97% 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.

ChartMill's Evaluation of 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 6 out of 10:

• 61.29% of the companies in the same industry are more expensive than MNSO, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 28.37, MNSO is valued a bit cheaper.
• 64.52% of the companies in the same industry are more expensive than MNSO, based on the Price/Forward Earnings ratio.
• MNSO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 96.21.
• 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 32.55% in the coming years.

Health Assessment of NYSE:MNSO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MNSO has received a 7 out of 10:

• An Altman-Z score of 7.65 indicates that MNSO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 7.65, MNSO belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
• A Debt/Equity ratio of 0.15 indicates that MNSO is not too dependend on debt financing.
• The Debt to Equity ratio of MNSO (0.15) is better than 64.52% of its industry peers.
• A Current Ratio of 2.38 indicates that MNSO has no problem at all paying its short term obligations.
• The Current ratio of MNSO (2.38) is better than 80.65% of its industry peers.
• MNSO has a better Quick ratio (1.93) than 77.42% of its industry peers.

Profitability Assessment of NYSE:MNSO

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:

• Looking at the Return On Assets, with a value of 15.39%, MNSO belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
• MNSO has a better Return On Equity (24.94%) than 80.65% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 19.84%, MNSO belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
• The 3 year average ROIC (9.40%) for MNSO is below the current ROIC(19.84%), indicating increased profibility in the last year.
• MNSO's Profit Margin of 15.71% is amongst the best of the industry. MNSO outperforms 93.55% of its industry peers.
• Looking at the Operating Margin, with a value of 19.87%, MNSO belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
• MNSO's Operating Margin has improved in the last couple of years.
• MNSO's Gross Margin has improved in the last couple of years.

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

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.