MINISO GROUP HOLDING LTD-ADR (MNSO) Stock Fundamental Analysis
USA - NYSE:MNSO - US66981J1025 - ADR
22.75 USD
+0.58 (+2.62%)
22.88 USD
+0.13 (+0.57%)
Overall MNSO gets a fundamental rating of 6 out of 10. We evaluated MNSO against 28 industry peers in the Broadline Retail industry. While MNSO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MNSO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, MNSO could be worth investigating further 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.
In the past 5 years MNSO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.83%, MNSO belongs to the best of the industry, outperforming 82.14% 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 85.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.11%, MNSO belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MNSO is above the industry average of 10.41%.
| 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
Looking at the Profit Margin, with a value of 12.63%, MNSO belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
MNSO has a better Operating Margin (18.18%) than 92.86% of its industry peers.
In the last couple of years the Operating Margin of MNSO has grown nicely.
MNSO's Gross Margin of 45.12% is fine compared to the rest of the industry. MNSO outperforms 60.71% of its industry peers.
MNSO's Gross Margin has improved in the last couple of years.
| 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
MNSO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MNSO has less shares outstanding
The number of shares outstanding for MNSO has been increased compared to 5 years ago.
The debt/assets ratio for MNSO is higher compared to a year ago.
2.2 Solvency
MNSO has an Altman-Z score of 3.64. This indicates that MNSO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.64, MNSO is in the better half of the industry, outperforming 67.86% 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 (10.42) which is in line with its industry peers.
A Debt/Equity ratio of 0.72 indicates that MNSO is somewhat dependend on debt financing.
MNSO has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: MNSO underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.42 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.78
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.92 indicates that MNSO should not have too much problems paying its short term obligations.
MNSO has a Current ratio of 1.92. This is in the better half of the industry: MNSO outperforms 67.86% of its industry peers.
A Quick Ratio of 1.50 indicates that MNSO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, 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 | 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 19.63%, which is quite good.
MNSO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.50% yearly.
The Revenue has grown by 21.03% 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 12.59% yearly.
EPS 1Y (TTM)19.63%
EPS 3Y73.5%
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)21.03%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
3.2 Future
The Earnings Per Share is expected to grow by 15.60% on average over the next years. This is quite good.
MNSO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.50% yearly.
EPS Next Y3.01%
EPS Next 2Y13.12%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue Next Year23.44%
Revenue Next 2Y21.16%
Revenue Next 3Y19.5%
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
A Price/Earnings ratio of 18.35 indicates a rather expensive valuation of MNSO.
Based on the Price/Earnings ratio, MNSO is valued a bit cheaper than 75.00% of the companies in the same industry.
MNSO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.44 indicates a correct valuation of MNSO.
Based on the Price/Forward Earnings ratio, MNSO is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
MNSO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
MNSO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MNSO is cheaper than 67.86% of the companies in the same industry.
MNSO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.82 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MNSO does not grow enough to justify the current Price/Earnings ratio.
MNSO has an outstanding profitability rating, which may justify a higher PE ratio.
MNSO's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.09
PEG (5Y)N/A
EPS Next 2Y13.12%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
MNSO has a Yearly Dividend Yield of 2.75%.
MNSO's Dividend Yield is rather good when compared to the industry average which is at 9.30. MNSO pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, MNSO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 2Y13.12%
EPS Next 3Y15.6%
22.75
+0.58 (+2.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners15.16%
Inst Owner Change0%
Ins Owners63.54%
Ins Owner ChangeN/A
Market Cap6.95B
Analysts85.83
Price Target23.83 (4.75%)
Short Float %5.22%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP56.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.45%
Min EPS beat(2)2.4%
Max EPS beat(2)52.51%
EPS beat(4)3
Avg EPS beat(4)13.25%
Min EPS beat(4)-5.58%
Max EPS beat(4)52.51%
EPS beat(8)6
Avg EPS beat(8)6.97%
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)1
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-2.21%
Min Revenue beat(4)-5%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.23%
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)10.61%
PT rev (3m)22.66%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)12.4%
EPS NY rev (1m)1.71%
EPS NY rev (3m)-10.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 14.44 | ||
| P/S | 2.66 | ||
| P/FCF | 49.82 | ||
| P/OCF | 26.23 | ||
| P/B | 4.56 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)1.24
EY5.45%
EPS(NY)1.58
Fwd EY6.93%
FCF(TTM)0.46
FCFY2.01%
OCF(TTM)0.87
OCFY3.81%
SpS8.56
BVpS4.98
TBVpS4.96
PEG (NY)6.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 21.69% | ||
| ROCE | 16.91% | ||
| ROIC | 13.11% | ||
| ROICexc | 20.89% | ||
| ROICexgc | 20.98% | ||
| OM | 18.18% | ||
| PM (TTM) | 12.63% | ||
| GM | 45.12% | ||
| FCFM | 5.34% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 10.42 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 110.61% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.02% | ||
| Profit Quality | 42.25% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.64 |
F-Score4
WACC7.36%
ROIC/WACC1.78
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 3Y73.5%
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y3.01%
EPS Next 2Y13.12%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue 1Y (TTM)21.03%
Revenue growth 3Y23.27%
Revenue growth 5Y12.59%
Sales Q2Q%23.07%
Revenue Next Year23.44%
Revenue Next 2Y21.16%
Revenue Next 3Y19.5%
Revenue Next 5YN/A
EBIT growth 1Y10.76%
EBIT growth 3Y99.85%
EBIT growth 5Y25.86%
EBIT Next Year24.93%
EBIT Next 3Y22.47%
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%