MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
USA - NYSE:MNSO - US66981J1025 - ADR
24.65 USD
-0.08 (-0.32%)
24.65 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to MNSO. MNSO was compared to 28 industry peers in the Broadline Retail industry. MNSO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MNSO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make MNSO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MNSO was profitable.
In the past year MNSO had a positive cash flow from operations.
In multiple years MNSO reported negative net income over the last 5 years.
MNSO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MNSO has a Return On Assets of 14.45%. This is amongst the best in the industry. MNSO outperforms 92.86% of its industry peers.
With an excellent Return On Equity value of 25.38%, MNSO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
MNSO has a Return On Invested Capital of 20.80%. This is amongst the best in the industry. MNSO outperforms 96.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MNSO is above the industry average of 11.01%.
The 3 year average ROIC (15.21%) for MNSO is below the current ROIC(20.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.45% | ||
| ROE | 25.38% | ||
| ROIC | 20.8% |
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's Profit Margin of 15.40% is amongst the best of the industry. MNSO outperforms 92.86% of its industry peers.
MNSO has a Operating Margin of 19.56%. This is amongst the best in the industry. MNSO outperforms 92.86% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.94%, MNSO is in line with its industry, outperforming 57.14% of the companies in the same industry.
MNSO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.56% | ||
| PM (TTM) | 15.4% | ||
| GM | 44.94% |
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.
MNSO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MNSO has been increased compared to 5 years ago.
MNSO has a worse debt/assets ratio than last year.
2.2 Solvency
MNSO has an Altman-Z score of 6.51. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.51, MNSO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of MNSO is 2.21, which is a good value as it means it would take MNSO, 2.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MNSO (2.21) is better than 78.57% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that MNSO is not too dependend on debt financing.
The Debt to Equity ratio of MNSO (0.18) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 6.51 |
ROIC/WACC2.67
WACC7.8%
2.3 Liquidity
A Current Ratio of 2.04 indicates that MNSO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.04, MNSO is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that MNSO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.55, MNSO is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.63% over the past year.
Measured over the past years, MNSO shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.52% on average per year.
MNSO shows a strong growth in Revenue. In the last year, the Revenue has grown by 48.12%.
Measured over the past years, MNSO shows a quite strong growth in Revenue. The Revenue has been growing by 12.59% on average per year.
EPS 1Y (TTM)19.63%
EPS 3Y73.52%
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)48.12%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
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 15.85% on average per year.
MNSO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.59% yearly.
EPS Next Y1.26%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
EPS Next 5YN/A
Revenue Next Year23.42%
Revenue Next 2Y21.2%
Revenue Next 3Y19.59%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.88, MNSO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. MNSO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.19, the valuation of MNSO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MNSO to the average of the S&P500 Index (22.77), we can say MNSO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNSO is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
MNSO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.16 | ||
| EV/EBITDA | 10.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MNSO may justify a higher PE ratio.
MNSO's earnings are expected to grow with 15.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.8
PEG (5Y)N/A
EPS Next 2Y14.74%
EPS Next 3Y15.85%
5. Dividend
5.1 Amount
MNSO has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.95, MNSO pays a better dividend. On top of this MNSO pays more dividend than 82.14% of the companies listed in the same industry.
MNSO's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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
47.53% of the earnings are spent on dividend by MNSO. This is a bit on the high side, but may be sustainable.
DP47.53%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
24.65
-0.08 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.31%
Inst Owner Change-16.72%
Ins Owners63.1%
Ins Owner ChangeN/A
Market Cap7.53B
Analysts85.83
Price Target26.26 (6.53%)
Short Float %3.89%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP47.53%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-5.58%
Max EPS beat(2)3.7%
EPS beat(4)2
Avg EPS beat(4)-11.71%
Min EPS beat(4)-56.08%
Max EPS beat(4)11.11%
EPS beat(8)6
Avg EPS beat(8)13.71%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-5%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-5%
Max Revenue beat(4)-0.86%
Revenue beat(8)4
Avg Revenue beat(8)3.45%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)28.4%
PT rev (3m)42%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)-12.44%
EPS NY rev (3m)-12.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.26%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 15.19 | ||
| P/S | 3.16 | ||
| P/FCF | 38.16 | ||
| P/OCF | 24.74 | ||
| P/B | 5.2 | ||
| P/tB | 5.22 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)1.24
EY5.03%
EPS(NY)1.62
Fwd EY6.58%
FCF(TTM)0.65
FCFY2.62%
OCF(TTM)1
OCFY4.04%
SpS7.81
BVpS4.74
TBVpS4.73
PEG (NY)15.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.45% | ||
| ROE | 25.38% | ||
| ROCE | 26.83% | ||
| ROIC | 20.8% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 19.56% | ||
| PM (TTM) | 15.4% | ||
| GM | 44.94% | ||
| FCFM | 8.27% |
ROA(3y)11.09%
ROA(5y)3.11%
ROE(3y)18.11%
ROE(5y)N/A
ROIC(3y)15.21%
ROIC(5y)14.47%
ROICexc(3y)50.75%
ROICexc(5y)N/A
ROICexgc(3y)51.79%
ROICexgc(5y)N/A
ROCE(3y)19.61%
ROCE(5y)18.67%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-56.57%
ROICexc growth 3YN/A
ROICexc growth 5Y-46.7%
OM growth 3Y62.12%
OM growth 5Y11.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.81%
GM growth 5Y10.95%
F-Score4
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 94.29% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.46% | ||
| Profit Quality | 53.71% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 6.51 |
F-Score4
WACC7.8%
ROIC/WACC2.67
Cap/Depr(3y)71.07%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.96%
Cap/Sales(5y)2.3%
Profit Quality(3y)104.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.63%
EPS 3Y73.52%
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y1.26%
EPS Next 2Y14.74%
EPS Next 3Y15.85%
EPS Next 5YN/A
Revenue 1Y (TTM)48.12%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
Revenue Next Year23.42%
Revenue Next 2Y21.2%
Revenue Next 3Y19.59%
Revenue Next 5YN/A
EBIT growth 1Y17.58%
EBIT growth 3Y99.85%
EBIT growth 5Y25.86%
EBIT Next Year36.75%
EBIT Next 3Y24.46%
EBIT Next 5YN/A
FCF growth 1Y-5.77%
FCF growth 3Y24.07%
FCF growth 5Y8.79%
OCF growth 1Y30.15%
OCF growth 3Y33.26%
OCF growth 5Y15.86%