MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
NYSE:MNSO - New York Stock Exchange, Inc. - US66981J1025 - ADR - Currency: USD
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 gets an excellent profitability rating and is at the same time showing great financial health properties. MNSO is growing strongly while it is still valued neutral. This is a good combination! This makes MNSO very considerable 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.
The reported net income has been mixed in the past 5 years: MNSO reported negative net income in multiple years.
Each year in the past 5 years MNSO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.45%, MNSO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
MNSO's Return On Equity of 25.38% is amongst the best of the industry. MNSO outperforms 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 20.80%, MNSO belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
MNSO had an Average Return On Invested Capital over the past 3 years of 15.21%. This is above the industry average of 11.59%.
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
With an excellent Profit Margin value of 15.40%, MNSO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
MNSO's Operating Margin of 19.56% is amongst the best of the industry. MNSO outperforms 92.86% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
MNSO has a Gross Margin of 44.94%. This is comparable to the rest of the industry: MNSO outperforms 57.14% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MNSO is creating value.
The number of shares outstanding for MNSO has been reduced compared to 1 year ago.
Compared to 5 years ago, MNSO has more shares outstanding
MNSO has a worse debt/assets ratio than last year.
2.2 Solvency
MNSO has an Altman-Z score of 5.36. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MNSO (5.36) is better than 78.57% of its industry peers.
MNSO has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as MNSO would need 2.21 years to pay back of all of its debts.
MNSO has a better Debt to FCF ratio (2.21) than 67.86% of its industry peers.
MNSO has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
MNSO has a better Debt to Equity ratio (0.18) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 5.36 |
ROIC/WACC2.71
WACC7.68%
2.3 Liquidity
MNSO has a Current Ratio of 2.04. This indicates that MNSO is financially healthy and has no problem in meeting its short term obligations.
MNSO's Current ratio of 2.04 is fine compared to the rest of the industry. MNSO outperforms 71.43% of its industry peers.
MNSO has a Quick Ratio of 1.55. 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 better Quick ratio (1.55) than 71.43% of its industry peers.
| 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 impressive 31.90% 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 73.42% on average per year.
Looking at the last year, MNSO shows a very strong growth in Revenue. The Revenue has grown by 21.15%.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)31.9%
EPS 3Y73.42%
EPS 5YN/A
EPS Q2Q%-7.84%
Revenue 1Y (TTM)21.15%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%16.77%
3.2 Future
The Earnings Per Share is expected to grow by 19.54% on average over the next years. This is quite good.
Based on estimates for the next years, MNSO will show a quite strong growth in Revenue. The Revenue will grow by 19.06% on average per year.
EPS Next Y15.65%
EPS Next 2Y19.65%
EPS Next 3Y19.54%
EPS Next 5YN/A
Revenue Next Year22.12%
Revenue Next 2Y20.43%
Revenue Next 3Y19.06%
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.
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
MNSO is valuated correctly with a Price/Earnings ratio of 14.78.
Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MNSO is valued a bit cheaper.
MNSO is valuated reasonably with a Price/Forward Earnings ratio of 10.14.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. MNSO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MNSO indicates a somewhat cheap valuation: MNSO is cheaper than 71.43% of the companies listed in the same industry.
MNSO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.68 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
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 19.54% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y19.65%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, MNSO has a reasonable but not impressive dividend return.
MNSO's Dividend Yield is rather good when compared to the industry average which is at 12.99. MNSO pays more dividend than 82.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, MNSO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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 2Y19.65%
EPS Next 3Y19.54%
17.74
-0.35 (-1.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.31%
Inst Owner Change0%
Ins Owners63.1%
Ins Owner ChangeN/A
Market Cap5.43B
Analysts83.2
Price Target19.43 (9.53%)
Short Float %7.42%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend0.55
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)5.05%
PT rev (3m)-3.55%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 10.14 | ||
| P/S | 2.29 | ||
| P/FCF | 27.68 | ||
| P/OCF | 17.95 | ||
| P/B | 3.77 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)1.2
EY6.76%
EPS(NY)1.75
Fwd EY9.87%
FCF(TTM)0.64
FCFY3.61%
OCF(TTM)0.99
OCFY5.57%
SpS7.75
BVpS4.7
TBVpS4.69
PEG (NY)0.94
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 | 5.36 |
F-Score4
WACC7.68%
ROIC/WACC2.71
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)31.9%
EPS 3Y73.42%
EPS 5YN/A
EPS Q2Q%-7.84%
EPS Next Y15.65%
EPS Next 2Y19.65%
EPS Next 3Y19.54%
EPS Next 5YN/A
Revenue 1Y (TTM)21.15%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%16.77%
Revenue Next Year22.12%
Revenue Next 2Y20.43%
Revenue Next 3Y19.06%
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%