Monster Beverage Corp

Consumer Staples
Beverages (Production/Distribution)
www.monsterbevcorp.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $50.83B
PE 32
Debt $750.00M
Cash $1.63B
EV $49.95B
FCF $1.62B

Earnings

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Sales & Net Margins

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Earnings	$1.61B
EBIT	$2.05B
ROE	28%
ROA	25%
FCF	$1.62B
Equity	$5.78B
Growth Stability	92%
PE	31.66
PEG	4.66
PB	8.8
P/FCF	31.43
P/S	6.86
Price/Cash	0.03
Debt/Equity	0.13
Debt/FCF	0.46
Net Margins	22%
Gross Margins	54%
Op. Margins	28%
Earnings CAGR	12%
Sales Growth YoY	1%
Sales Growth QoQ	-1%
Sales CAGR	13%
FCF CAGR	7%
Equity CAGR	11%
Earnings Stability	0.89
Earnings Growth YoY	-18%
Earnings Growth QoQ	-13%

Earnings CAGR 5Y	7%
Sales CAGR 5Y	14%
FCF CAGR 5Y	6%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	35%
Equity CAGR 3Y	0%
Market Cap	$50.83B
Revenue	$7.41B
Assets	$8.05B
Total Debt	$750.00M
Cash	$1.63B
Shares Outstanding	972.45M
EV	49.95B
Earnings Score	94%
Moat Score	97%
Safety Score	97%
Final Score	96%
Working Capital	2.65B
Current Ratio	3.13
Gross Profit	$3.98B
Shares Growth 3y	-2%
Equity Growth QoQ	-1%
Equity Growth YoY	-27%

Assets & ROA

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Stockholders Equity & ROE

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Monster Beverage is a leader in the energy drink subsegment of the beverage industry. The Monster trademark anchors the portfolio, and notable offerings include Monster Energy and Monster Ultra. The firm has also started to incubate new trademarks for emerging enclaves of the energy space, like Reign in performance energy. It is primarily a brand owner, outsourcing most of its manufacturing processes to third-party copackers. It primarily uses the Coca-Cola bottling system for distribution after a strategic agreement in which Coke became Monster's largest shareholder (roughly 19%) and that also included the exchange of certain businesses between the two firms. Most of Monster's revenue is generated in the United States, though international geographies are increasing in the mix.

SEC Filings

Direct access to Monster Beverage Corp (MNST) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Monster Beverage Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Monster Beverage Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 89%

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Monster Beverage Corp Discounted Cash Flow

Fully customizable DCF calculator online for Monster Beverage Corp.

Years

Calculation mode

= $27B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.6B	$1.7B	$1.9B	$2B	$2.2B	$2.3B	$2.5B	$2.7B	$2.9B	$3.1B	$3.3B	$33B
DCF		$1.6B	$1.5B	$1.5B	$1.5B	$1.4B	$1.4B	$1.4B	$1.3B	$1.3B	$1.3B	$13B
Value	$27B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	20%	20%	23%	24%	26%	26%	31%	25%	19%	23%	22%
ROA	-	16%	26%	25%	29%	27%	26%	23%	19%	21%	25%
ROE	-	11%	21%	21%	28%	27%	27%	21%	17%	20%	28%

Good Net Margins (21.8%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	0	0.46
Debt over Equity	-	-	-	-	-	-	-	-	-	0	0.13
Growth Stability	-	-	-	100%	100%	100%	100%	100%	92%	100%	92%

Good Debt/FCF ratio (0.46)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.13)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (92%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	10%	12%	10%	13%	10%	9%	20%	14%	13%	14%
Earnings YoY growth	-	13%	30%	15%	21%	12%	27%	-2%	-13%	37%	7%
Equity YoY growth	-	217%	-31%	17%	-7%	16%	24%	27%	7%	17%	13%
FCF YoY growth	-	-13%	23%	50%	22%	-8%	30%	-15%	-37%	114%	6%