MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MNSO - US66981J1025 - ADR
19.21 USD
-0.63 (-3.18%)
Taking everything into account, MNSO scores 7 out of 10 in our fundamental rating. MNSO was compared to 30 industry peers in the Broadline Retail industry. MNSO scores excellent on profitability, but there are some minor concerns on its financial health. MNSO is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make MNSO a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- MNSO had positive earnings in the past year.
- MNSO had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: MNSO reported negative net income in multiple years.
- MNSO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.83%, MNSO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 21.69%, MNSO belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- MNSO has a better Return On Invested Capital (13.11%) than 83.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MNSO is significantly above the industry average of 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 21.69% | ||
| ROIC | 13.11% |
ROA(3y)11.09%
ROA(5y)3.11%
ROE(3y)18.11%
ROE(5y)N/A
ROIC(3y)15.21%
ROIC(5y)14.47%
1.3 Margins
- MNSO has a Profit Margin of 12.63%. This is amongst the best in the industry. MNSO outperforms 93.33% of its industry peers.
- Looking at the Operating Margin, with a value of 18.18%, MNSO belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of MNSO has grown nicely.
- With a decent Gross Margin value of 45.12%, MNSO is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- In the last couple of years the Gross Margin of MNSO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.18% | ||
| PM (TTM) | 12.63% | ||
| GM | 45.12% |
OM growth 3Y62.12%
OM growth 5Y11.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.81%
GM growth 5Y10.95%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MNSO is creating value.
- The number of shares outstanding for MNSO has been reduced compared to 1 year ago.
- MNSO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MNSO has a worse debt to assets ratio.
2.2 Solvency
- MNSO has an Altman-Z score of 3.35. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.35, MNSO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Debt to FCF ratio of MNSO is 10.42, which is on the high side as it means it would take MNSO, 10.42 years of fcf income to pay off all of its debts.
- MNSO has a Debt to FCF ratio of 10.42. This is comparable to the rest of the industry: MNSO outperforms 46.67% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that MNSO is somewhat dependend on debt financing.
- MNSO has a worse Debt to Equity ratio (0.72) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.42 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.74
WACC7.55%
2.3 Liquidity
- MNSO has a Current Ratio of 1.92. This is a normal value and indicates that MNSO is financially healthy and should not expect problems in meeting its short term obligations.
- MNSO has a Current ratio of 1.92. This is in the better half of the industry: MNSO outperforms 63.33% of its industry peers.
- A Quick Ratio of 1.50 indicates that MNSO should not have too much problems paying its short term obligations.
- MNSO has a better Quick ratio (1.50) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- MNSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.01%, which is quite good.
- Measured over the past years, MNSO shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.91% on average per year.
- Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 23.44%.
- MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.59% yearly.
EPS 1Y (TTM)13.01%
EPS 3Y73.91%
EPS 5YN/A
EPS Q2Q%12.73%
Revenue 1Y (TTM)23.44%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%28.17%
3.2 Future
- Based on estimates for the next years, MNSO will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.91% on average per year.
- Based on estimates for the next years, MNSO will show a quite strong growth in Revenue. The Revenue will grow by 19.73% on average per year.
EPS Next Y-8.55%
EPS Next 2Y9.95%
EPS Next 3Y13.91%
EPS Next 5YN/A
Revenue Next Year23.7%
Revenue Next 2Y21.48%
Revenue Next 3Y19.73%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.55, which indicates a correct valuation of MNSO.
- Based on the Price/Earnings ratio, MNSO is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- MNSO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 12.52, which indicates a correct valuation of MNSO.
- Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than 76.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MNSO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MNSO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.81 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
- 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 13.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.95%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.09%, MNSO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.35, MNSO pays a better dividend. On top of this MNSO pays more dividend than 90.00% of the companies listed in the same industry.
- MNSO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
- MNSO has been paying a dividend for over 5 years, so it has already some track record.
- MNSO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- MNSO pays out 56.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP56.42%
EPS Next 2Y9.95%
EPS Next 3Y13.91%
MINISO GROUP HOLDING LTD-ADR / MNSO FAQ
What is the ChartMill fundamental rating of MINISO GROUP HOLDING LTD-ADR (MNSO) stock?
ChartMill assigns a fundamental rating of 7 / 10 to MNSO.
Can you provide the valuation status for MINISO GROUP HOLDING LTD-ADR?
ChartMill assigns a valuation rating of 5 / 10 to MINISO GROUP HOLDING LTD-ADR (MNSO). This can be considered as Fairly Valued.
What is the profitability of MNSO stock?
MINISO GROUP HOLDING LTD-ADR (MNSO) has a profitability rating of 8 / 10.
What is the financial health of MINISO GROUP HOLDING LTD-ADR (MNSO) stock?
The financial health rating of MINISO GROUP HOLDING LTD-ADR (MNSO) is 5 / 10.
Can you provide the expected EPS growth for MNSO stock?
The Earnings per Share (EPS) of MINISO GROUP HOLDING LTD-ADR (MNSO) is expected to decline by -8.55% in the next year.