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.

Snowflake

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

-0.6%

MNST

0.4%

US Beverage

0.07%

US Market


1 Year Return

6.3%

MNST

15.3%

US Beverage

8.9%

US Market

Return vs Industry: MNST underperformed the US Beverage industry which returned 15.3% over the past year.

Return vs Market: MNST underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MNSTIndustryMarket
7 Day-0.6%0.4%0.07%
30 Day-4.1%0.1%-0.3%
90 Day-13.6%1.3%-1.6%
1 Year6.3%6.3%18.3%15.3%11.3%8.9%
3 Year12.0%12.0%32.1%21.9%46.3%36.8%
5 Year72.2%72.2%57.9%38.0%62.1%44.3%

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?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNST ($55.94) is trading below our estimate of fair value ($67.66)

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 (28.9x) compared to the Beverage industry average (28.9x).

PE vs Market: MNST is poor value based on its PE Ratio (28.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MNST is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: MNST is overvalued based on its PB Ratio (7.5x) compared to the US Beverage industry average (4.4x).


Next Steps

Future Growth

How is Monster Beverage forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNST's forecast earnings growth (6.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MNST's earnings (6.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MNST's revenue (7.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MNST's revenue (7.5% 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?

18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MNST's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: MNST's earnings growth over the past year (17.1%) is below its 5-year average (18.8% per year).

Earnings vs Industry: MNST earnings growth over the past year (17.1%) exceeded the Beverage industry -1.9%.


Return on Equity

High ROE: MNST's Return on Equity (26.1%) is considered high.


Return on Assets

ROA vs Industry: MNST has a higher Return on Assets than the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: MNST has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Monster Beverage's financial position?


Financial Position Analysis

Short Term Liabilities: MNST's short term assets ($2.3B) exceeds its short term liabilities ($705.5M)

Long Term Liabilities: MNST's short term assets (2.3B) exceeds its long term liabilities (321.2M)


Debt to Equity History and Analysis

Debt Level: MNST is debt free.

Reducing Debt: MNST has not had any debt for past 5 years.

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: MNST's debt is covered by short term assets (assets are 654926968611099811.130570x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Monster Beverage's salary, the management and board of directors tenure and is there insider trading?

15.1yrs

Average management tenure


CEO

Rodney Sacks (69yo)

28.9yrs

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 ($USD13.91M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

15.1yrs

Average Tenure

65yo

Average Age

Experienced Management: MNST's management team is seasoned and experienced (15.1 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MNST's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$11,160,67209 May 19
Mark Hall
EntityIndividual
Role
Member of the Board of Directors
Director
Shares181,622
Max PriceUS$61.45
SellUS$380,64006 Mar 19
Sydney Selati
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$63.44
SellUS$1,245,00006 Mar 19
Mark Vidergauz
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares20,000
Max PriceUS$62.25

Ownership Breakdown


Management Team

  • Rodney Sacks (69yo)

    Chairman & CEO

    • Tenure: 28.9yrs
    • Compensation: US$13.91m
  • Hilton Schlosberg (66yo)

    Vice Chairman

    • Tenure: 28.9yrs
    • Compensation: US$13.89m
  • Thomas Kelly (65yo)

    Executive VP of Finance

    • Tenure: 0yrs
    • Compensation: US$1.88m
  • Emelie Tirre (49yo)

    President of the Americas

    • Tenure: 1.3yrs
    • Compensation: US$3.12m
  • Guy Carling (42yo)

    President of EMEA

    • Tenure: 1.3yrs
    • Compensation: US$3.04m

Board Members

  • Gary Fayard (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$234.99k
  • Rodney Sacks (69yo)

    Chairman & CEO

    • Tenure: 28.9yrs
    • Compensation: US$13.91m
  • Hilton Schlosberg (66yo)

    Vice Chairman

    • Tenure: 28.9yrs
    • Compensation: US$13.89m
  • Jeanne Jackson (67yo)

    Independent Director

    • Tenure: 0.3yrs
  • Benjamin Polk (68yo)

    Independent Director

    • Tenure: 28.9yrs
    • Compensation: US$224.99k
  • Mark Vidergauz (66yo)

    Lead Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$252.49k
  • Sydney Selati (80yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$267.49k
  • Mark Hall (64yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$2.16m
  • Kathleen Ciaramello (55yo)

    Director

    • Tenure: 0.3yrs
  • Steven Pizula (63yo)

    Independent Director

    • Tenure: 0.3yrs

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$30.481b
  • Shares outstanding: 544.88m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:35
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.