MINISO GROUP HOLDING LTD-ADR (MNSO)
US66981J1025 - ADR
Overall MNSO gets a fundamental rating of 6 out of 10. We evaluated MNSO against 32 industry peers in the Broadline Retail industry. While MNSO has a great profitability rating, there are some minor concerns on its financial health. 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 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.
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
Looking at the Return On Assets, with a value of 15.39%, MNSO belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
MNSO's Return On Equity of 24.94% is fine compared to the rest of the industry. MNSO outperforms 78.13% of its industry peers.
MNSO has a better Return On Invested Capital (19.84%) than 90.63% of its industry peers.
MNSO had an Average Return On Invested Capital over the past 3 years of 9.40%. This is below the industry average of 11.71%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.39% | ||
| ROE | 24.94% | ||
| ROIC | 19.84% |
ROA(3y)1.86%
ROA(5y)-0.89%
ROE(3y)2.57%
ROE(5y)N/A
ROIC(3y)9.4%
ROIC(5y)17.46%
1.3 Margins
With an excellent Profit Margin value of 15.71%, MNSO belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Operating Margin of MNSO (19.87%) is better than 93.75% of its industry peers.
MNSO's Operating Margin has improved in the last couple of years.
The Gross Margin of MNSO (43.08%) is comparable to the rest of the industry.
MNSO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 15.71% | ||
| GM | 43.08% |
OM growth 3Y31.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.36%
GM growth 5YN/A
2. Health
2.1 Basic Checks
MNSO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MNSO has been increased compared to 1 year ago.
Compared to 5 years ago, MNSO has less shares outstanding
Compared to 1 year ago, MNSO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.09 indicates that MNSO is not in any danger for bankruptcy at the moment.
MNSO has a Altman-Z score of 8.09. This is amongst the best in the industry. MNSO outperforms 93.75% of its industry peers.
MNSO has a debt to FCF ratio of 5.86. This is a neutral value as MNSO would need 5.86 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.86, MNSO perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that MNSO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, MNSO is doing good in the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 5.86 | ||
| Altman-Z | 8.09 |
ROIC/WACC2.65
WACC7.49%
2.3 Liquidity
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.
MNSO has a Current ratio of 2.38. This is in the better half of the industry: MNSO outperforms 78.13% of its industry peers.
A Quick Ratio of 1.93 indicates that MNSO should not have too much problems paying its short term obligations.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 178.16% over the past year.
The Revenue has grown by 29.06% in the past year. This is a very strong growth!
MNSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
EPS 1Y (TTM)178.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%393.45%
Revenue 1Y (TTM)29.06%
Revenue growth 3Y8.51%
Revenue growth 5YN/A
Sales Q2Q%26.32%
3.2 Future
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.
EPS Next Y52.24%
EPS Next 2Y37.15%
EPS Next 3Y31.83%
EPS Next 5YN/A
Revenue Next Year48.13%
Revenue Next 2Y34.23%
Revenue Next 3Y28.93%
Revenue Next 5YN/A
3.3 Evolution
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 13.88.
The rest of the industry has a similar Price/Earnings ratio as MNSO.
The average S&P500 Price/Earnings ratio is at 27.55. MNSO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.69, which indicates a correct valuation of MNSO.
MNSO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MNSO to the average of the S&P500 Index (24.00), we can say MNSO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 16.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MNSO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MNSO is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 172.64 | ||
| EV/EBITDA | 14.79 |
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.
The decent profitability rating of MNSO may justify a higher PE ratio.
A more expensive valuation may be justified as MNSO's earnings are expected to grow with 31.83% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y37.15%
EPS Next 3Y31.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, MNSO is not a good candidate for dividend investing.
MNSO's Dividend Yield is a higher than the industry average which is at 5.34.
Compared to an average S&P500 Dividend Yield of 2.36, MNSO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
MNSO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MNSO pays out 49.45% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.45%
EPS Next 2Y37.15%
EPS Next 3Y31.83%
MINISO GROUP HOLDING LTD-ADR
NYSE:MNSO (12/26/2024, 8:04:01 PM)
After market: 25.13 0 (0%)25.13
+0.32 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners10.05%
Inst Owner Change-24.37%
Ins Owners62.7%
Ins Owner ChangeN/A
Market Cap7.85B
Analysts80.95
Price Target20.22 (-19.54%)
Short Float %1.71%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Dividend Growth(5Y)N/A
DP49.45%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-23.19%
Min EPS beat(2)-56.08%
Max EPS beat(2)9.7%
EPS beat(4)3
Avg EPS beat(4)-0.46%
Min EPS beat(4)-56.08%
Max EPS beat(4)26.83%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-1.26%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-0.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)1%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)5.43%
PT rev (3m)4.27%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 16.69 | ||
| P/S | 3.72 | ||
| P/FCF | 172.64 | ||
| P/OCF | 78.99 | ||
| P/B | 5.91 | ||
| P/tB | 5.93 | ||
| EV/EBITDA | 14.79 |
EPS(TTM)1.81
EY7.2%
EPS(NY)1.51
Fwd EY5.99%
FCF(TTM)0.15
FCFY0.58%
OCF(TTM)0.32
OCFY1.27%
SpS6.75
BVpS4.25
TBVpS4.24
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.39% | ||
| ROE | 24.94% | ||
| ROCE | 27.01% | ||
| ROIC | 19.84% | ||
| ROICexc | 50.41% | ||
| ROICexgc | 50.8% | ||
| OM | 19.87% | ||
| PM (TTM) | 15.71% | ||
| GM | 43.08% | ||
| FCFM | 2.16% |
ROA(3y)1.86%
ROA(5y)-0.89%
ROE(3y)2.57%
ROE(5y)N/A
ROIC(3y)9.4%
ROIC(5y)17.46%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.8%
ROCE(5y)23.77%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y31.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.36%
GM growth 5YN/A
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 5.86 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 100.57% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 21.03% | ||
| Profit Quality | 13.72% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 8.09 |
F-Score6
WACC7.49%
ROIC/WACC2.65
Cap/Depr(3y)62.32%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.13%
Cap/Sales(5y)1.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)178.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%393.45%
EPS Next Y52.24%
EPS Next 2Y37.15%
EPS Next 3Y31.83%
EPS Next 5YN/A
Revenue 1Y (TTM)29.06%
Revenue growth 3Y8.51%
Revenue growth 5YN/A
Sales Q2Q%26.32%
Revenue Next Year48.13%
Revenue Next 2Y34.23%
Revenue Next 3Y28.93%
Revenue Next 5YN/A
EBIT growth 1Y37.36%
EBIT growth 3Y42.48%
EBIT growth 5YN/A
EBIT Next Year82.6%
EBIT Next 3Y40.05%
EBIT Next 5YN/A
FCF growth 1Y33.66%
FCF growth 3Y24.69%
FCF growth 5YN/A
OCF growth 1Y18.47%
OCF growth 3Y26.32%
OCF growth 5YN/A