Monster Beverage (MNST) AI Stock Analysis

• Market Cap: $75.38B
• Dividend Yield: N/A
• Average Volume (3M): 6.85M
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.33
• Revenue Growth: 7.62%
• EPS Growth: 12.77%
• Country: US
• Employees: 5,527
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.51
• Shares Outstanding: 978,270,750
• 10 Day Avg. Volume: 6,482,447
• 30 Day Avg. Volume: 6,852,349
• PEG Ratio: 1.31
• Price to Book (P/B): 9.06
• Price to Sales (P/S): 9.02
• P/FCF Ratio: 38.06
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 8.90
• Enterprise Value/Gross Profit: 15.94
• Enterprise Value/Ebitda: 28.70
• 1Y Price Target: $91.56
• Price Target Upside: 18.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 2.27
• Revenue Forecast (FY): $9.22B

• Rating: 77 Outperform
• Price Target: $87.00 ▲(12.13% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong underlying financial quality (high profitability and a very conservative balance sheet) and a positive earnings update showing robust Q4 momentum and strong early 2026 sales. Technicals also support the view with a sustained uptrend, though near-overbought signals temper the rating. The largest constraint is valuation, with a high P/E and no dividend yield provided, plus some uncertainty around the TTM cash-flow print and near-term input-cost pressure.

Positive Factors

High Profitability and Margins

Sustained, high gross and net margins indicate durable pricing power, strong brand economics, and the ability to absorb cost shocks while funding marketing, innovation, and buybacks. Over 2–6 months this supports cash generation, reinvestment in growth, and operating leverage preservation.

Very Conservative Balance Sheet

Extremely low leverage provides financial flexibility to fund growth initiatives, weather regional disruptions, pursue M&A or buybacks, and maintain investment-grade-like resilience. This balance-sheet strength materially reduces refinancing and liquidity risk over the medium term.

Strong International Expansion & Distribution

Rapid international revenue growth and share gains diversify the revenue base and lower single-market dependence. Combined with established bottling/distribution partnerships, this structural footprint supports durable volume growth, incremental scale benefits, and improved shelf presence over coming quarters.

Negative Factors

Slowing Revenue Growth Trend

A decelerating top-line trajectory reduces potential for sustained operating-leverage gains and raises reliance on product innovation, pricing, and international expansion to drive future growth. If moderation persists, it can pressure long-term margin expansion and investor return expectations.

Input-Cost and Tariff Pressure

Structural exposure to commodity and tariff volatility can compress gross margins absent offsetting actions. While management plans hedging and targeted pricing, sustained higher can costs could erode margin durability and necessitate repeated price increases that may affect volume over time.

Distributor / Bottler Operational Disruptions

Reliance on third-party distributors and bottlers creates execution risk that can materially affect near- and medium-term volumes in key markets. Repeated disruptions undermine consistent shelf availability, limit international momentum, and require capital and management focus to remediate distribution relationships.

Monster Beverage Business Overview & Revenue Model

Company Description

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. It offers carbonated energy drinks, 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 waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to bottlers, full-service beverage distributors, as well as sells directly to retail grocery and speciality chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster HydroSport Super Fuel, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, as well as NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, Fury, and True North brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.

How the Company Makes Money

Monster Beverage primarily makes money by selling branded ready-to-drink beverages—most notably energy drinks—to retailers and distributors, generating revenue from wholesale shipments across domestic and international markets. Its key revenue stream is the sale of Monster-branded energy drinks and line extensions (including zero-sugar variants and flavored energy products), where earnings are driven by volume, pricing/mix, and brand strength. International revenue is generated through sales in multiple countries, often leveraging third-party bottling and distribution networks to reach convenience, grocery, mass retail, and on-premise channels. A major factor supporting Monster’s monetization is its long-standing strategic relationship with The Coca-Cola Company and Coca-Cola’s bottling system, which has served as an important global distribution partner for many markets. This partnership helps expand reach, improve shelf placement and execution, and reduce the need for Monster to build a full end-to-end distribution infrastructure in every region. Monster also earns from other beverage brands and product lines it owns or licenses, where applicable, but its financial performance is largely tied to the energy drink category and the continued growth and profitability of its core energy brands.

Monster Beverage Financial Statement Overview

Summary

Income statement and balance sheet are strong (high margins and very low leverage), supporting a high-quality earnings profile. The main offsets are moderating TTM revenue growth and uncertainty in the most recent cash-flow picture due to the TTM operating/free cash flow shown as zero.

Income Statement

Monster shows strong profitability with consistently high gross and net margins across the period, and TTM (Trailing-Twelve-Months) margins remain solid (net margin ~21.7%, EBIT margin ~28.5%). Revenue has grown steadily, though the growth rate has moderated versus earlier years (TTM growth ~4% vs. low-to-mid teens in 2021–2023). Overall, the income statement reflects a high-quality earnings profile, with the main watch item being the slowing top-line growth trajectory.

Balance Sheet

The balance sheet is a key strength: debt is minimal to none (TTM total debt reported at 0; 2024 debt-to-equity ~0.06), indicating very low financial leverage and strong flexibility. Equity is sizable and return on equity has remained strong (roughly ~20–27% historically; ~25% in TTM), signaling efficient profitability on the capital base. The only mild drawback is that changes in reported debt levels year-to-year suggest some variability in capital structure reporting/usage, but leverage remains very conservative.

Cash Flow

Cash generation looks healthy in the annual years shown (operating cash flow and free cash flow both positive, with free cash flow generally covering a large portion of net income). However, the TTM (Trailing-Twelve-Months) line shows operating cash flow and free cash flow as 0 with free cash flow growth at -100%, which materially weakens confidence in the most recent cash flow picture and may indicate missing/partial data rather than a true collapse. Given prior-year strength but unclear TTM cash results, cash flow quality scores as good but not top-tier.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.29B	7.49B	7.14B	6.31B	5.54B
Gross Profit	4.63B	4.05B	3.79B	3.17B	3.11B
EBITDA	2.60B	2.01B	2.02B	1.65B	1.85B
Net Income	1.91B	1.51B	1.63B	1.19B	1.38B
Balance Sheet
Total Assets	9.99B	7.72B	9.69B	8.29B	7.80B
Cash, Cash Equivalents and Short-Term Investments	2.77B	1.53B	3.25B	2.67B	3.08B
Total Debt	0.00	373.95M	0.00	0.00	0.00
Total Liabilities	1.73B	1.76B	1.46B	1.27B	1.24B
Stockholders Equity	8.25B	5.96B	8.23B	7.03B	6.57B
Cash Flow
Free Cash Flow	1.97B	1.62B	1.48B	675.55M	1.10B
Operating Cash Flow	2.10B	1.93B	1.72B	887.70M	1.16B
Investing Cash Flow	-1.32B	733.73M	-193.40M	-161.37M	-992.02M
Financing Cash Flow	-324.42M	-3.33B	-542.60M	-706.94M	34.82M

Monster Beverage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 77.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNST, the sentiment is Neutral. The current price of 77.59 is below the 20-day moving average (MA) of 80.31, below the 50-day MA of 80.08, and above the 200-day MA of 69.93, indicating a neutral trend. The MACD of -1.18 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 63.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNST.

Monster Beverage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNST	77 Outperform	$75.38B	39.57	25.65%	―	7.62%	12.77%
KO	76 Outperform	$334.68B	22.95	44.35%	2.92%	2.93%	25.42%
PEP	70 Outperform	$215.55B	23.92	43.03%	3.91%	0.48%	-22.61%
FIZZ	69 Neutral	$3.25B	19.35	35.99%	―	0.97%	0.36%
CELH	63 Neutral	$11.21B	99.61	4.66%	―	55.07%	-87.01%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KDP	62 Neutral	$37.43B	18.30	8.29%	3.12%	6.77%	-29.84%

Monster Beverage Corporate Events

Monster Beverage Delivers Strong Fourth-Quarter 2025 Results

Monster Beverage reported strong fourth-quarter 2025 results on February 26, 2026, with net sales up 17.6% year-on-year to $2.13 billion, marking its first fiscal fourth quarter above $2.0 billion, driven largely by its Monster Energy Drinks segment and robust international demand. Operating income rose 42.3% to $542.6 million and net income surged 65.9% to $449.2 million, aided by a lower effective tax rate, while international sales grew 26.9% to comprise 42% of total revenue; however, the Alcohol Brands segment saw a 16.8% sales decline and continued impairment charges, underscoring the company’s reliance on core energy offerings and innovation to sustain growth and strengthen its position in the expanding global energy drink market.

The most recent analyst rating on (MNST) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Monster Beverage stock, see the MNST Stock Forecast page.