How Monster Beverage Corporation (NASDAQ:MNST) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Monster Beverage Corporation (NASDAQ:MNST) due to its excellent fundamentals in more than one area. MNST is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Monster Beverage here.

Excellent balance sheet with proven track record

MNST delivered a satisfying double-digit returns of 26% in the most recent year. Not surprisingly, MNST outperformed its industry which returned 20%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. MNST’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Investors should not worry about MNST’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$31b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

NasdaqGS:MNST Income Statement, September 8th 2019
NasdaqGS:MNST Income Statement, September 8th 2019

Next Steps:

For Monster Beverage, there are three essential factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for MNST’s future growth? Take a look at our free research report of analyst consensus for MNST’s outlook.
  2. Valuation: What is MNST worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MNST is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MNST? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.