Monster Beverage (MNST) AI Stock Analysis

• Market Cap: $62.47B
• Dividend Yield: N/A
• Average Volume (3M): 5.24M
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.42
• Revenue Growth: 3.70%
• EPS Growth: -0.53%
• Country: US
• Employees: 5,527
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.52
• Shares Outstanding: 976,428,160
• 10 Day Avg. Volume: 6,060,555
• 30 Day Avg. Volume: 5,240,530
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 7.78
• Enterprise Value/Gross Profit: 14.09
• Enterprise Value/Ebitda: 27.27
• 1Y Price Target: $68.47
• Price Target Upside: 5.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 80 Outperform
• Price Target: $73.00 ▲(12.43% Upside)

Monster Beverage's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical indicators support a bullish outlook, although the high P/E ratio suggests the stock is priced for growth. The absence of a dividend yield is a minor drawback.

Positive Factors

International Sales Expansion

Expanding international sales indicate a strong global market presence, diversifying revenue streams and reducing reliance on domestic markets.

Gross Margin Improvement

Improved gross margins reflect effective cost management and pricing strategies, enhancing profitability and competitive positioning.

Strong Cash Flow Management

Robust cash flow generation supports reinvestment in growth initiatives and provides financial flexibility to navigate market changes.

Negative Factors

Alcohol Brands Segment Decline

Declining sales in the Alcohol Brands segment could signal challenges in market penetration and product acceptance, affecting diversification efforts.

Increased Operating Costs

Rising operating costs can pressure margins and reduce profitability, necessitating efficiency improvements to sustain financial health.

Decrease in Latin America Sales

Sales decline in Latin America highlights regional challenges that could impact overall growth and require strategic adjustments.

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 makes money primarily through the production, marketing, and sale of energy drinks. The company's revenue model is largely based on the sale of its branded beverages to a variety of distribution channels, including convenience stores, supermarkets, mass merchandisers, and online platforms. Key revenue streams include domestic and international sales, with a significant portion of its earnings coming from global markets outside the United States. Monster Beverage also benefits from strategic partnerships and distribution agreements, notably with Coca-Cola, which enhances its market reach and distribution efficiency. The company continually invests in marketing and sponsorships, particularly in extreme sports and music events, which further drive brand visibility and sales.

Monster Beverage Financial Statement Overview

Summary

Monster Beverage demonstrates strong financial performance with consistent revenue growth, high profitability, and efficient cash flow management. The low leverage and high equity ratio provide financial stability, while robust profit margins and cash flows underscore its operational efficiency.

Income Statement

Monster Beverage shows a strong financial performance with consistent revenue growth and high profitability. The TTM gross profit margin is at 54.63%, indicating efficient cost management. Net profit margin remains solid at 20.27%, highlighting robust bottom-line profitability. Revenue growth rate from 2023 to 2024 was 4.94%, demonstrating a healthy upward trajectory. EBIT and EBITDA margins of 26.28% and 27.09% respectively, reflect strong operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. Return on Equity (ROE) is impressive at 23.16%, showcasing effective use of shareholder capital. The equity ratio is high at 79.25%, reflecting strong financial stability with a significant portion of assets funded by equity.

Cash Flow

Monster Beverage demonstrates excellent cash flow management. The free cash flow growth rate is 10.08% from 2023 to 2024, indicating strong cash generation capability. Operating cash flow to net income ratio is 1.34, and free cash flow to net income ratio is 1.18, both highlighting efficient cash conversion and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.66B	7.49B	7.14B	6.31B	5.54B	4.60B
Gross Profit	4.23B	4.05B	3.79B	3.17B	3.11B	2.72B
EBITDA	2.18B	2.01B	2.02B	1.65B	1.85B	1.69B
Net Income	1.57B	1.51B	1.63B	1.19B	1.38B	1.41B
Balance Sheet
Total Assets	8.73B	7.72B	9.69B	8.29B	7.80B	6.20B
Cash, Cash Equivalents and Short-Term Investments	2.07B	1.53B	3.25B	2.67B	3.08B	2.06B
Total Debt	0.00	373.95M	0.00	0.00	0.00	0.00
Total Liabilities	1.54B	1.76B	1.46B	1.27B	1.24B	1.04B
Stockholders Equity	7.19B	5.96B	8.23B	7.03B	6.57B	5.16B
Cash Flow
Free Cash Flow	1.82B	1.62B	1.48B	675.55M	1.10B	1.30B
Operating Cash Flow	2.05B	1.93B	1.72B	887.70M	1.16B	1.36B
Investing Cash Flow	-527.31M	733.73M	-193.40M	-161.37M	-992.02M	-472.49M
Financing Cash Flow	-1.20B	-3.33B	-542.60M	-706.94M	34.82M	-526.07M

Monster Beverage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 64.93 is above the 20-day moving average (MA) of 63.76, above the 50-day MA of 62.41, and above the 200-day MA of 57.94, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, 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
MNST	80 Outperform	$62.47B	40.26	24.10%	―	3.70%	-0.53%
KO	74 Outperform	285.98B	23.64	42.62%	3.03%	1.34%	14.67%
PEP	74 Outperform	194.64B	25.87	40.99%	3.91%	-0.34%	-20.51%
CELH	71 Outperform	13.38B	143.04	6.30%	―	11.85%	-64.69%
KDP	67 Neutral	35.66B	23.51	6.15%	3.50%	4.63%	-28.22%
FIZZ	63 Neutral	3.44B	18.51	42.08%	―	0.46%	0.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Monster Beverage Corporate Events

Monster Beverage Reports Record Q2 2025 Sales Growth

Monster Beverage Corporation reported record net sales of $2.11 billion for the second quarter of 2025, marking an 11.1% increase from the previous year and surpassing the $2.0 billion threshold for the first time. The company’s operating income rose by 19.8% to $631.6 million, and net income per diluted share increased by 21.1% to $0.50. The growth was driven by strong performance in the Monster Energy® Drinks segment and strategic pricing actions, despite unfavorable foreign currency impacts. The company continues to focus on product innovation and increasing household penetration of energy drinks, which are seen as positive trends for long-term growth.

The most recent analyst rating on (MNST) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Monster Beverage stock, see the MNST Stock Forecast page.

Monster Beverage Re-elects Directors at Annual Meeting

At the Annual Meeting of Stockholders held on June 12, 2025, Monster Beverage re-elected ten directors to serve until the 2026 annual meeting, with notable figures like Rodney C. Sacks and Hilton H. Schlosberg among them. Additionally, the stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers on a non-binding, advisory basis.

The most recent analyst rating on (MNST) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Monster Beverage stock, see the MNST Stock Forecast page.