Monster Beverage (MNST) AI Stock Analysis

• Market Cap: $61.43B
• Dividend Yield: N/A
• Average Volume (3M): 5.78M
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.39
• Revenue Growth: 1.47%
• EPS Growth: -4.87%
• Country: US
• Employees: 5,527
• Sector: Consumer Defensive
• Sector Strength: 72
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.47
• Shares Outstanding: 975,246,150
• 10 Day Avg. Volume: 6,011,739
• 30 Day Avg. Volume: 5,775,584
• PEG Ratio: -8.31
• Price to Book (P/B): 9.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $63.50
• Price Target Upside: 1.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $68.00 ▲( 8.16% Upside)

Monster Beverage's stock is rated at 76 due to its strong financial performance, supported by solid revenue growth and profitability. Technical indicators show positive momentum, but the high P/E ratio suggests the stock may be overvalued. The balanced sentiment from the earnings call reflects both growth opportunities and challenges. Overall, Monster Beverage is in a healthy financial position, but valuation concerns temper the score.

Positive Factors

Margin Expansion

Gross margin increased by 240 basis points to 56.5% due to pricing and supply chain optimization.

Market Position

As the market leader, MNST looks well positioned to benefit from a strong energy category that is outpacing almost every other segment in consumer staples.

Sales Performance

April sales growth of +16.7% ex-FX exceeded expectations, indicating confidence in the health of the energy drink category.

Negative Factors

Hedging Challenges

Management was more cautious on its ability to hedge the Midwest premium but reiterated willingness to take pricing as an offset.

Revenue Miss

Reported 1Q sales growth of -2.3% missed expectations due to timing of bottler shipments, FX, alcohol brands declines, weather, and one fewer day.

Stock Valuation

Much of the good news already looks to be embedded in the shares, however, as the stock is currently trading at a 10% premium to its one-year average P/E.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 62.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNST, the sentiment is Positive. The current price of 62.87 is above the 20-day moving average (MA) of 60.92, above the 50-day MA of 59.00, and above the 200-day MA of 53.19, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 90.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNST.

Monster Beverage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KO	80 Outperform	$308.57B	28.70	40.98%	2.73%	1.15%	0.28%
FIZZ	77 Outperform	$4.27B	22.85	40.81%	―	0.34%	9.48%
MNST	76 Outperform	$61.43B	41.66	20.00%	―	1.47%	-4.87%
CELH	76 Outperform	$9.81B	116.46	9.19%	―	-5.98%	-65.57%
PEP	75 Outperform	$180.71B	19.38	50.06%	4.16%	-0.38%	2.23%
KDP	73 Outperform	$44.83B	29.90	6.13%	2.69%	3.95%	-28.73%
Sector *	64 Neutral	$8.78B	14.55	4.78%	173.91%	3.39%	2.17%

Monster Beverage Corporate Events

Monster Beverage Director Gary Fayard to Step Down

On April 14, 2025, Gary P. Fayard, a director on Monster Beverage Corporation’s Board, announced his decision not to seek reelection at the 2025 Annual Meeting of Stockholders. His decision was not due to any disagreements with the company, and he will continue his role until the meeting.