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Monster Beverage (MNST)
NASDAQ:MNST
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Monster Beverage
(NASDAQ:MNST)
76Outperform
Positive Factors
Market Share
Management expressed satisfaction with recent market share momentum in the U.S. following years of share losses.
Product Strategy
MNST views its 2025 new product pipeline as better than 2024 and is employing a revised strategy for new product distribution/execution after a successful test behind the Ultra Vice Guava launch.
Sales Growth
International revenue showed solid growth with 19.9% FX-neutral growth in Q4.
Negative Factors
Competitive Strategy
Management's strategy to compete in the functional/better-for-you space did not inspire confidence, with MNST losing share to better-for-you/functional competitors.
Consumer Spending
Tighter consumer spending is limiting performance, and macro improvement may be needed to turn the tide.
Earnings Performance
EPS missed consensus due to higher taxes.
Monster Beverage (MNST) vs. S&P 500 (SPY)
Market Cap
$58.05B
Dividend YieldN/A
Average Volume (3M)6.41M
Price to Earnings (P/E)38.5
Beta (1Y)0.39
Revenue Growth4.94%
EPS Growth-4.13%
CountryUS
Employees5,527
SectorConsumer Defensive
Sector Strength93
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)1.48
Shares Outstanding973,158,900
10 Day Avg. Volume5,602,374
30 Day Avg. Volume6,406,934
Financial Highlights & Ratios
PEG Ratio6.90
Price to Book (P/B)N/A
Price to Sales (P/S)7.44
Price to Cash Flow (P/CF)30.20
P/FCF Ratio37.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$58.31Price Target Upside2.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Monster Beverage Business Overview & Revenue Model
Company DescriptionMonster 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 MoneyMonster Beverage Corporation generates revenue primarily through the sale of its energy drink products. The company's revenue model is centered on its extensive portfolio of energy drinks, which are distributed and sold in over 100 countries worldwide. A significant portion of its earnings is derived from the Monster Energy brand, which enjoys a strong market presence and brand recognition. Monster Beverage's distribution network includes a mix of direct-store delivery and partnerships with bottlers and distributors, ensuring wide availability of its products. The company also benefits from strategic marketing and sponsorships, particularly in motorsports and extreme sports, which enhance brand visibility and consumer engagement. Additionally, Monster Beverage engages in partnerships and joint ventures with other beverage companies, such as The Coca-Cola Company, which holds a minority stake in Monster and supports its distribution efforts through its vast network.
Monster Beverage Financial Statement Overview
Summary
Monster Beverage exhibits a strong financial performance with consistent revenue growth and profitability. The balance sheet is robust, characterized by low leverage and a high equity ratio, indicating financial health and stability. While cash flow data for 2024 is missing, historical trends reflect efficient cash generation. The company is well-positioned in the non-alcoholic beverage industry, with potential for continued growth.Income Statement
Monster Beverage has demonstrated strong revenue growth over the years, with a consistent upward trajectory in total revenue from $4.20 billion in 2019 to $7.49 billion in 2024. The gross profit margin remains robust at around 54.05% in 2024, indicating effective cost management. Net profit margin slightly decreased from 2023, but it remains strong at 20.14% in 2024. EBIT and EBITDA margins are consistent, reflecting operational efficiency.90
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.06 in 2024, showcasing low leverage and financial stability. Return on Equity (ROE) is solid at 25.33%, indicating effective utilization of shareholders' equity. The equity ratio is strong at 77.19%, denoting a solid financial foundation and low financial risk.85
Very Positive
Cash Flow
Cash flow analysis shows a lack of data for 2024, but historical data indicate strong free cash flow generation with a growth rate of 119.51% from 2021 to 2022. The free cash flow to net income ratios have been positive, suggesting efficient conversion of profits into cash. However, the absence of 2024 cash flow data limits a comprehensive assessment.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.49B | 7.14B | 6.31B | 5.54B | 4.60B | Gross Profit |
| 4.05B | 3.79B | 3.17B | 3.11B | 2.72B | EBIT |
| 1.93B | 1.95B | 1.58B | 1.80B | 1.63B | EBITDA |
| 2.01B | 2.02B | 1.58B | 1.80B | 1.63B | Net Income Common Stockholders |
| 1.51B | 1.63B | 1.19B | 1.38B | 1.41B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.53B | 3.25B | 2.67B | 3.08B | 2.06B | Total Assets |
| 7.72B | 9.69B | 8.29B | 7.80B | 6.20B | Total Debt |
| 373.95M | 66.02M | 45.93M | 28.18M | 18.14M | Net Debt |
| -1.16B | -2.23B | -1.26B | -1.30B | -1.16B | Total Liabilities |
| 1.76B | 1.46B | 1.27B | 1.24B | 1.04B | Stockholders Equity |
| 5.96B | 8.23B | 7.03B | 6.57B | 5.16B |
| Cash Flow | Free Cash Flow | |||
| 1.62B | 1.48B | 675.55M | 1.10B | 1.30B | Operating Cash Flow |
| 1.93B | 1.72B | 887.70M | 1.16B | 1.36B | Investing Cash Flow |
| 733.73M | -193.40M | -161.37M | -992.02M | -472.49M | Financing Cash Flow |
| -3.33B | -542.60M | -706.94M | 34.82M | -526.07M |
Monster Beverage Technical Analysis
Neutral
57.08
Price Trends
53.15
Positive
52.87
Positive
51.61
Positive
Market Momentum
1.63
Negative
72.84
Negative
81.26
Negative
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 57.08 is below the 20-day moving average (MA) of 57.12, above the 50-day MA of 53.15, and above the 200-day MA of 51.61, indicating a neutral trend. The MACD of 1.63 indicates Negative momentum. The RSI at 72.84 is Negative, neither overbought nor oversold. The STOCH value of 81.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNST.
Monster Beverage Risk Analysis
Monster Beverage disclosed 39 risk factors in its most recent earnings report. Monster Beverage reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Monster Beverage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $207.58B | 21.78 | 52.42% | 3.70% | 0.42% | 5.77% | |
76 Outperform | $58.05B | 38.47 | 21.27% | ― | 4.94% | -4.13% | |
76 Outperform | $48.34B | 33.83 | 5.77% | 2.54% | 3.62% | -32.23% | |
76 Outperform | $9.28B | 80.33 | 12.54% | ― | 2.85% | -43.53% | |
73 Outperform | $300.95B | 28.42 | 41.86% | 2.81% | 1.96% | -0.45% | |
69 Neutral | $3.92B | 21.53 | 40.81% | ― | 0.34% | 9.48% | |
62 Neutral | $20.22B | 14.00 | -15.99% | 3.22% | 1.17% | 3.32% |
* Consumer Defensive Sector Average
Performance Comparison
MNST
Monster Beverage
57.08
1.43
2.57%
KO
Coca-Cola
69.93
12.38
21.51%
KDP
Keurig Dr Pepper
33.81
3.81
12.70%
FIZZ
National Beverage
42.70
-2.35
-5.22%
PEP
PepsiCo
146.61
-17.51
-10.67%
CELH
Celsius Holdings
35.54
-48.26
-57.59%
Monster Beverage Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 9.94% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with strong international sales and product innovation being offset by significant impairment charges, increased operating expenses, and challenges in the U.S. market. Natural disasters also played a role in disrupting operations. Despite these challenges, there are positive signs of growth, especially in international markets.Highlights
Record Fourth Quarter Net Sales
The company achieved record fourth quarter net sales of $1.81 billion in the 2024 fourth quarter, 4.7% higher than net sales of $1.73 billion in the comparable 2023 quarter.
Strong International Performance
Net sales to customers outside the U.S. were $711.5 million, representing 39.3% of total net sales in the 2024 fourth quarter, compared to 36.8% in 2023. Significant growth was reported in EMEA, Asia-Pacific, and Latin America on a currency-neutral basis.
Gross Profit Margin Improvement
Gross profit as a percentage of net sales for the 2024 fourth quarter was 55.3%, compared with 54.2% in the 2023 fourth quarter, primarily due to reduced input costs.
Market Share Growth in Key Regions
Monster gained market share in several regions including Belgium, Great Britain, Germany, and Brazil, with notable sales increases in countries like Argentina (82.5% increase) and South Korea (14.8% increase).
Successful Product Launches
New product launches such as Monster Ultra Vice Guava and other innovations across various brands received positive responses from consumers and customers.
Lowlights
Significant Impairment Charges
Operating expenses for the 2024 fourth quarter were adversely impacted by $130.7 million of impairment charges related to the Alcohol Brands segment.
Decline in U.S. Market Share and Sales
Sales of Reign decreased by 6.3% and Full Throttle by 0.8% in the U.S. market. Market share of Monster in the convenience and gas channel slightly decreased from 36.8% to 36.9%.
Impact of Natural Disasters
Hurricanes Helene and Milton, along with California wildfires, adversely impacted sales, particularly affecting production and shipping in certain U.S. states.
Increased Operating Expenses
Operating expenses for the 2024 fourth quarter increased to $621.2 million, largely due to increased payroll, sponsorship, and legal expenses.
Foreign Currency Exchange Impact
Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2024 fourth quarter, with a negative impact of $52.3 million.
Company Guidance
During the Monster Beverages Company's fourth quarter and full-year 2024 conference call, the company highlighted several key metrics and trends. Net sales reached a record $1.81 billion in Q4 2024, up 4.7% from $1.73 billion in Q4 2023, and increased 7.8% on a foreign currency adjusted basis. The energy drink category experienced significant growth globally, with Nielsen data indicating a 6.2% increase in the U.S. energy drink market for the 13 weeks ended February 15, 2025. EMEA, APAC, and LatAm also saw notable growth rates of approximately 14.4%, 11.8%, and 20.2%, respectively. Adjusted operating income for Q4 2024 rose 7.9% to $517.9 million, while diluted earnings per share, adjusted for certain items, remained stable at $0.38. The company faced challenges such as the impact of Hurricanes Helene and Milton and a $130.7 million impairment charge in the Alcohol Brands segment. Despite these hurdles, the company plans to continue expanding their innovation pipeline and exploring pricing opportunities domestically and internationally. Adjusted net income per diluted share for the full year 2024 was $1.62, compared to $1.56 in 2023.Monster Beverage Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Monster Beverage Announces Investor Meeting for 2025
Neutral
Jan 21, 2025
On January 21, 2025, Monster Beverage Corporation’s Co-Chief Executive Officers and senior management will host an investor meeting to discuss the company’s business and operations. The presentation will be webcast live and archived on the company’s website. The announcement highlights Monster’s strategic growth efforts, emphasizing its global distribution reach and market leadership in energy drinks, while also addressing potential risks such as economic uncertainties, geopolitical tensions, and changes in consumer preferences.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.