NasdaqGS:MNST

Stock Analysis Report

Executive Summary

Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages and concentrates in the United States and internationally.

Rewards

Trading at 9% below its fair value

Earnings are forecast to grow 7.23% per year

Earnings grew by 14.3% over the past year

Risk Analysis

No risks detected for MNST from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Monster Beverage's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MNST has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

MNST

-0.01%

US Beverage

-1.1%

US Market


1 Year Return

19.3%

MNST

24.7%

US Beverage

17.9%

US Market

Return vs Industry: MNST underperformed the US Beverage industry which returned 24.7% over the past year.

Return vs Market: MNST exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

MNSTIndustryMarket
7 Day-0.2%-0.01%-1.1%
30 Day3.9%3.3%1.4%
90 Day18.9%10.0%6.9%
1 Year19.3%19.3%27.9%24.7%20.3%17.9%
3 Year60.1%60.1%46.9%35.5%47.8%38.3%
5 Year48.3%48.3%61.2%41.2%71.9%53.0%

Price Volatility Vs. Market

How volatile is Monster Beverage's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Monster Beverage undervalued compared to its fair value and its price relative to the market?

9.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNST ($69.74) is trading below our estimate of fair value ($76.64)

Significantly Below Fair Value: MNST is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MNST is good value based on its PE Ratio (34.8x) compared to the Beverage industry average (35x).

PE vs Market: MNST is poor value based on its PE Ratio (34.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MNST is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: MNST is overvalued based on its PB Ratio (9.2x) compared to the US Beverage industry average (3x).


Next Steps

Future Growth

How is Monster Beverage forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNST's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MNST's earnings (7.2% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: MNST's earnings are forecast to grow, but not significantly.

Revenue vs Market: MNST's revenue (8.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MNST's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNST's Return on Equity is forecast to be high in 3 years time (25.8%)


Next Steps

Past Performance

How has Monster Beverage performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNST has high quality earnings.

Growing Profit Margin: MNST's current net profit margins (26.6%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: MNST's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: MNST's earnings growth over the past year (14.3%) is below its 5-year average (18.3% per year).

Earnings vs Industry: MNST earnings growth over the past year (14.3%) exceeded the Beverage industry -11.9%.


Return on Equity

High ROE: MNST's Return on Equity (26.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Monster Beverage's financial position?


Financial Position Analysis

Short Term Liabilities: MNST's short term assets ($2.4B) exceed its short term liabilities ($714.2M).

Long Term Liabilities: MNST's short term assets ($2.4B) exceed its long term liabilities ($315.2M).


Debt to Equity History and Analysis

Debt Level: MNST is debt free.

Reducing Debt: MNST had no debt 5 years ago.

Debt Coverage: MNST has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MNST has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MNST has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MNST's debt is covered by short term assets.


Next Steps

Dividend

What is Monster Beverage's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MNST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MNST's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MNST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MNST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MNST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.4yrs

Average management tenure


CEO

Rodney Sacks (69yo)

29.3yrs

Tenure

US$13,914,931

Compensation

Mr. Rodney Cyril Sacks, H.Dip.Law, H.Dip.Tax has been the Chairman and Chief Executive Officer of Monster Beverage Corporation (formerly, Hansen Natural Corporation) since November 1990. Mr. Sacks serves a ...


CEO Compensation Analysis

Compensation vs Market: Rodney's total compensation ($USD13.91M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Rodney's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rodney Sacks
Chairman & CEO29.3yrsUS$13.91m0.71% $267.2m
Hilton Schlosberg
Vice Chairman29.3yrsUS$13.89m0.68% $255.7m
Guy Carling
President of EMEA1.6yrsUS$3.04m0.0037% $1.4m
Emelie Tirre
President of the Americas1.6yrsUS$3.12m0.011% $4.0m
Thomas Kelly
Executive VP of Finance0yrsUS$1.88m0.0047% $1.8m

15.4yrs

Average Tenure

65yo

Average Age

Experienced Management: MNST's management team is seasoned and experienced (15.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodney Sacks
Chairman & CEO29.3yrsUS$13.91m0.71% $267.2m
Hilton Schlosberg
Vice Chairman29.3yrsUS$13.89m0.68% $255.7m
Gary Fayard
Independent Director4.7yrsUS$234.99k0.0011% $427.5k
Jeanne Jackson
Independent Director0.7yrsno datano data
Benjamin Polk
Independent Director29.3yrsUS$224.99k0.0065% $2.4m
Mark Vidergauz
Lead Independent Director5.9yrsUS$252.49k0.0094% $3.5m
Sydney Selati
Independent Director15.4yrsUS$267.49k0.0077% $2.9m
Mark Hall
Director6.1yrsUS$2.16m0.16% $60.7m
Kathleen Ciaramello
Director0.7yrsno datano data
Steven Pizula
Independent Director0.7yrsno datano data

6.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MNST's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MNST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Monster Beverage Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monster Beverage Corporation
  • Ticker: MNST
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$37.498b
  • Shares outstanding: 537.68m
  • Website: https://www.monsterbevcorp.com

Number of Employees


Location

  • Monster Beverage Corporation
  • 1 Monster Way
  • Corona
  • California
  • 92879
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNSTNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 1985
MOBDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1985
MNSTWBAG (Wiener Boerse AG)YesCommon SharesATEURDec 1985
0K34LSE (London Stock Exchange)YesCommon SharesGBUSDDec 1985
MNST *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1985
M1NS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages and concentrates in the United States and internationally. It operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. The company offers ready-to-drink packaged energy drinks, carbonated energy drinks, non-carbonated dairy based coffee and energy drinks, non-carbonated energy shakes, and non-carbonated energy drinks primarily to bottlers and full service beverage distributors, as well as sells directly to retail grocery and specialty chains, wholesalers, club stores, drug stores, mass merchandisers, convenience chains, food service customers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. Monster Beverage Corporation sells its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster MAXX, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro, Caffé Monster, Predator, Live+, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play(stylized), Relentless, BPM, BU, Gladiator, Samurai, and Mutant 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:34
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.