Monster Beverage Corp
Exchange: NASDAQSector: Consumer DefensiveIndustry: Beverages - Non-Alcoholic
Monster Beverage Corporation is a holding company. The Company develops, markets, sells and distributes alternative beverage, such as non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, and single-serve still water (flavored and unflavored) with beverages, including sodas that are considered natural, sparkling juices and flavored sparkling beverages. It has two reportable segments, namely Direct Store Delivery (DSD), whose principal products comprise energy drinks, and Warehouse (Warehouse), whose principal products comprise juice-based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network. The Warehouse segment develops, markets and sells products directly to retailers.
Did you know?
Capital expenditures decreased by 50% from FY24 to FY25.
Current Price
$78.23
+0.86%GoodMoat Value
$51.52
34.1% overvaluedProfile
Valuation (TTM)
Market Cap$76.43B
P/E40.11
EV$69.62B
P/B9.26
Shares Out977.02M
P/Sales9.21
Revenue$8.29B
EV/EBITDA28.25
Monster Beverage Corp (MNST) Stock Analysis
GoodMoat Analysis
Monster Beverage is a high-quality business with a strong brand moat and excellent financials, but it is currently priced at a significant premium to its estimated fair value. The GoodMoat Target of $51.52 suggests the stock is overvalued by roughly 40%. For a value investor, this creates an unfavourable risk/reward profile despite the company's underlying strength.
Read full analysis
Monster Beverage Corp is a leading player in the global energy drink market, known for its flagship Monster brand. Applying the GoodMoat framework, the company exhibits a strong competitive moat, primarily through its powerful brand and culture (criterion 6), which commands significant consumer loyalty and shelf space. This is supported by a global distribution network that creates scale advantages (criterion 8). The company likely scores highly on several other criteria, such as pricing power (criterion 13) and low disruption risk (criterion 14), given its entrenched market position. Financially, the business is high quality, with a robust 29.2% operating margin, a 23.1% ROE, and a pristine balance sheet with minimal debt. However, the valuation presents a major hurdle. At a price of $72.88, the stock trades at a P/E of 37.5x, which is high for its 17.6% revenue growth. More critically, it trades approximately 40% above the GoodMoat Target price of $51.52. According to the Decision Framework (Section 6), a stock that passes the Moat & Quality Gate but trades with a negative Margin of Safety falls into the 'With Caution' or 'Unfavourable' category. The extreme valuation relative to the target price acts as a High Confidence Red Flag. Therefore, while Monster is an exemplary business, its current price does not offer the margin of safety a value investor typically requires, making further investigation for an immediate position unfavourable. Analysis based on data as of 2024-05-15.
Market Cap$76.43B
Current Price$78.23
P/E Ratio40.11
Forward P/E—
PEG Ratio0.62
EPS$1.94
Book Value$8.45
P/B Ratio9.26
MNST Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 11.6% FCF growth (CAGR)
Cash vs Debt
Net Cash: 2.0B
Revenue
4.2B
FY19
4.6B
FY20
5.5B
FY21
6.3B
FY22
7.1B
FY23
7.5B
FY24
8.3B
FY25
Net Income
1.1B
FY19
1.4B
FY20
1.4B
FY21
1.2B
FY22
1.6B
FY23
1.5B
FY24
1.9B
FY25
MNST 52-Week Range
$58.49
$86.66
50-Day MA: $77.23200-Day MA: $71.48
Did you know?
Net income compounded at 9.5% annually over 6 years.
Monster Beverage Corp (MNST) Financial Summary
Monster Beverage Corp (MNST) is a Consumer Defensive company in the Beverages - Non-Alcoholic industry, listed on NASDAQ. The stock currently trades at $78.23 with a market capitalization of $76.43B.
Key valuation metrics include a P/E ratio of 40.11, price-to-book ratio of 9.26, and EPS of $1.94. The company reports a profit margin of 23.0% and return on equity of 23.1%.
MNST Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $76.43B |
| P/E Ratio | 40.11 |
| EPS | $1.94 |
| P/B Ratio | 9.26 |
| P/S Ratio | 9.21 |
| EV/EBITDA | 28.25 |
| Profit Margin | 23.0% |
| Return on Equity | 23.1% |
| Debt/Equity | 0.02 |
MNST Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.20B | $1.11B |
| FY20 | $4.60B | $1.41B |
| FY21 | $5.54B | $1.38B |
| FY22 | $6.31B | $1.19B |
| FY23 | $7.14B | $1.63B |
| FY24 | $7.49B | $1.51B |
| FY25 | $8.29B | $1.91B |
Monster Beverage Corp (MNST) Valuation
Based on GoodMoat's DCF model, Monster Beverage Corp has a fair value estimate of $51.52. At the current price of $78.23, the stock appears 51.9% overvalued relative to our intrinsic value estimate.
MNST Quality Indicators
Monster Beverage Corp maintains a profit margin of 23.0% and an operating margin of 29.2%. Return on equity stands at 23.1%. The current ratio is 3.70. Debt-to-equity ratio is 0.02.
About Monster Beverage Corp
Monster Beverage Corporation is a holding company. The Company develops, markets, sells and distributes alternative beverage, such as non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, and single-serve still water (flavored and unflavored) with beverages, including sodas that are considered natural, sparkling juices and flavored sparkling beverages. It has two reportable segments, namely Direct Store Delivery (DSD), whose principal products comprise energy drinks, and Warehouse (Warehouse), whose principal products comprise juice-based and soda beverages. The DSD segment develops, markets and sells products primarily through an exclusive distributor network. The Warehouse segment develops, markets and sells products directly to retailers.
MNST Free Cash Flow
Monster Beverage Corp generated $1.94B in trailing twelve-month free cash flow, representing an FCF yield of 2.54%. This moderate FCF yield indicates reasonable cash generation.
MNST Shares Outstanding
Monster Beverage Corp has 0.98 billion shares outstanding at a share price of $78.23, giving it a market capitalization of $76.43B.
MNST Recent Insider Trades
Recent insider transactions at Monster Beverage Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| KELLY THOMAS J (Chief Financial Officer) | SELL | 8,000 | $617760.00 |
| Tirre Emelie (Chief Commercial Officer) | SELL | 30,000 | $2.20M |
| SACKS RODNEY C (Director) | SELL | 16,997 | $1.25M |