MINISO Group Holding Ltd (NYSE: MNSO)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0001815846
Market Cap 5.99 Bn
P/B 3.97
P/E 19.82
P/S 2.14
ROIC (Qtr) 70.21
Div Yield % 1.69
Rev 1y % (Qtr) 28.17
Total Debt (Qtr) 1.54 Bn
Debt/Equity (Qtr) 1.02
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About

MINISO Group Holding Ltd, also known as MNSO, is a Chinese company that operates in the retail industry. The company's main business activities involve designing, developing, manufacturing, and selling a wide range of consumer products, including home goods, health and beauty products, and electronics. MINISO's operations span across various countries and regions, with a focus on young adults and middle-class consumers. The company generates revenue primarily through the sale of its products. This occurs through its own retail stores, online channels,...

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Investment thesis

Bull case

  • Strong tangible asset base of 3.98B provides 2.58x coverage of total debt 1.54B, indicating robust asset backing and low credit risk.
  • Cash position of 436.27M provides exceptional 466.82x coverage of minority interest expenses 934550.56, indicating strong liquidity.
  • Tangible assets of 3.98B provide exceptional 82.13x coverage of deferred revenue 48.47M, showing strong service capability backing.
  • Short-term investments of 654.49M provide solid 5.18x coverage of other current liabilities 126.23M, indicating strong liquidity.
  • Long-term investments of 867.73M provide solid 0.78x coverage of long-term debt 1.11B, indicating strategic financial planning.

Bear case

  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 48.47M, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 867.73M represent a high 0.89x of fixed assets 973.05M, indicating potential overexposure to financial assets versus operational capabilities.
  • Short-term investments of 654.49M represent 0.86x of working capital 764.98M, suggesting potentially excessive financial asset allocation versus operational needs.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 92.90M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Short-term investments of 654.49M exceed receivables of 401.57M by 1.63x, indicating potentially inefficient capital allocation given collection cycle needs.

Geographical areas [axis] Breakdown of Revenue (2024)

Products and services [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 2.23
EV to Cash from Ops. EV/CFO 0.36 14.70
EV to Debt EV to Debt 0.09 79.39
EV to EBIT EV/EBIT 0.31 -40.16
EV to EBITDA EV/EBITDA 0.31 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF 0.53 -286.14
EV to Market Cap EV to Market Cap 0.02 6.33
EV to Revenue EV/Rev 0.05 2.39
Price to Book Value [P/B] P/B 3.97 32.78
Price to Earnings [P/E] P/E 19.82 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 33.30 14.19
Dividend per Basic Share Div per Share (Qtr) 0.33 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 18.58
Interest Coverage Int. cover (Qtr) 10.76 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 33.02 33.75
Dividend Growth (1y) % Div 1y % (Qtr) -41.61 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.97 -272.99
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 588.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.43 29.27
EBT Growth (1y) % EBT 1y % (Qtr) -11.58 -92.23
EPS Growth (1y) % EPS 1y % (Qtr) -11.17 -121.86
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 71.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 26.67 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 1.24
Cash Payout Ratio Cash Payout Ratio 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.37 0.74
Current Ratio Curr Ratio (Qtr) 1.66 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.02 25.92
Interest Cover Ratio Int Coverage (Qtr) 10.76 4.43
Times Interest Earned Times Interest Earned (Qtr) 10.76 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -42.64
EBIT Margin % EBIT Margin % (Qtr) 110.97 -131.12
EBT Margin % EBT Margin % (Qtr) 14.14 -64.70
Gross Margin % Gross Margin % (Qtr) 45.00 30.93
Net Profit Margin % Net Margin % (Qtr) 10.80 -65.71