MONSTER BEVERAGE CORP (MNST)
US61174X1090 - Common Stock
We assign a fundamental rating of 6 out of 10 to MNST. MNST was compared to 33 industry peers in the Beverages industry. MNST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MNST is quite expensive at the moment. It does show a decent growth rate. These ratings could make MNST a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
MNST had positive earnings in the past year.
MNST had a positive operating cash flow in the past year.
In the past 5 years MNST has always been profitable.
In the past 5 years MNST always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MNST (19.93%) is better than 96.97% of its industry peers.
MNST has a Return On Equity of 27.78%. This is in the better half of the industry: MNST outperforms 78.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.52%, MNST belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MNST is significantly above the industry average of 13.01%.
The last Return On Invested Capital (22.52%) for MNST is above the 3 year average (18.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 27.78% | ||
| ROIC | 22.52% |
ROA(3y)16.29%
ROA(5y)18.62%
ROE(3y)19.25%
ROE(5y)22.33%
ROIC(3y)18.43%
ROIC(5y)20.59%
1.3 Margins
Looking at the Profit Margin, with a value of 21.66%, MNST belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
MNST's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.76%, MNST belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Operating Margin of MNST has declined.
Looking at the Gross Margin, with a value of 53.77%, MNST is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
MNST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.76% | ||
| PM (TTM) | 21.66% | ||
| GM | 53.77% |
OM growth 3Y-7.9%
OM growth 5Y-4.11%
PM growth 3Y-9.34%
PM growth 5Y-2.62%
GM growth 3Y-2.71%
GM growth 5Y-2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MNST is creating value.
The number of shares outstanding for MNST has been reduced compared to 1 year ago.
The number of shares outstanding for MNST has been reduced compared to 5 years ago.
MNST has a worse debt/assets ratio than last year.
2.2 Solvency
MNST has an Altman-Z score of 16.85. This indicates that MNST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MNST (16.85) is better than 96.97% of its industry peers.
MNST has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
The Debt to FCF ratio of MNST (0.46) is better than 84.85% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that MNST is not too dependend on debt financing.
MNST's Debt to Equity ratio of 0.13 is amongst the best of the industry. MNST outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 16.85 |
ROIC/WACC2.44
WACC9.23%
2.3 Liquidity
MNST has a Current Ratio of 3.13. This indicates that MNST is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MNST (3.13) is better than 87.88% of its industry peers.
MNST has a Quick Ratio of 2.51. This indicates that MNST is financially healthy and has no problem in meeting its short term obligations.
MNST's Quick ratio of 2.51 is amongst the best of the industry. MNST outperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
MNST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.90%, which is quite good.
Measured over the past years, MNST shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.82% on average per year.
The Revenue has been growing slightly by 7.05% in the past year.
The Revenue has been growing by 13.40% on average over the past years. This is quite good.
EPS 1Y (TTM)9.9%
EPS 3Y-13.62%
EPS 5Y-2.82%
EPS Q2Q%-2.44%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y15.8%
Revenue growth 5Y13.4%
Sales Q2Q%1.34%
3.2 Future
MNST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.21% yearly.
Based on estimates for the next years, MNST will show a quite strong growth in Revenue. The Revenue will grow by 8.37% on average per year.
EPS Next Y6.91%
EPS Next 2Y10.27%
EPS Next 3Y10.66%
EPS Next 5Y13.21%
Revenue Next Year4.45%
Revenue Next 2Y5.93%
Revenue Next 3Y6.76%
Revenue Next 5Y8.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.71, the valuation of MNST can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as MNST.
MNST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.77 indicates a quite expensive valuation of MNST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNST is on the same level as its industry peers.
MNST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.77 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than MNST, based on the Enterprise Value to EBITDA ratio.
MNST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MNST is cheaper than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.67 | ||
| EV/EBITDA | 24.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MNST may justify a higher PE ratio.
PEG (NY)4.73
PEG (5Y)N/A
EPS Next 2Y10.27%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
MNST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MONSTER BEVERAGE CORP
NASDAQ:MNST (12/26/2024, 6:24:04 PM)
After market: 52.67 0 (0%)52.67
+0.16 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners68.6%
Inst Owner Change-0.38%
Ins Owners0.34%
Ins Owner Change16.69%
Market Cap51.22B
Analysts74.38
Price Target56.53 (7.33%)
Short Float %2.96%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.86%
Min EPS beat(2)-11.44%
Max EPS beat(2)-8.27%
EPS beat(4)0
Avg EPS beat(4)-6.83%
Min EPS beat(4)-11.44%
Max EPS beat(4)-2.77%
EPS beat(8)2
Avg EPS beat(8)-3.71%
EPS beat(12)2
Avg EPS beat(12)-6.01%
EPS beat(16)3
Avg EPS beat(16)-4.89%
Revenue beat(2)0
Avg Revenue beat(2)-5.45%
Min Revenue beat(2)-7.47%
Max Revenue beat(2)-3.44%
Revenue beat(4)0
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-2.06%
Revenue beat(8)0
Avg Revenue beat(8)-3.82%
Revenue beat(12)3
Avg Revenue beat(12)-1.99%
Revenue beat(16)5
Avg Revenue beat(16)-1.18%
PT rev (1m)0.85%
PT rev (3m)0.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.24%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.56%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.77 | ||
| P/S | 6.91 | ||
| P/FCF | 31.67 | ||
| P/OCF | 26.94 | ||
| P/B | 8.86 | ||
| P/tB | 17.55 | ||
| EV/EBITDA | 24.35 |
EPS(TTM)1.61
EY3.06%
EPS(NY)1.9
Fwd EY3.6%
FCF(TTM)1.66
FCFY3.16%
OCF(TTM)1.95
OCFY3.71%
SpS7.62
BVpS5.94
TBVpS3
PEG (NY)4.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 27.78% | ||
| ROCE | 29.13% | ||
| ROIC | 22.52% | ||
| ROICexc | 29.59% | ||
| ROICexgc | 66.03% | ||
| OM | 26.76% | ||
| PM (TTM) | 21.66% | ||
| GM | 53.77% | ||
| FCFM | 21.82% |
ROA(3y)16.29%
ROA(5y)18.62%
ROE(3y)19.25%
ROE(5y)22.33%
ROIC(3y)18.43%
ROIC(5y)20.59%
ROICexc(3y)30.94%
ROICexc(5y)32.98%
ROICexgc(3y)75.97%
ROICexgc(5y)99.21%
ROCE(3y)23.83%
ROCE(5y)26.62%
ROICexcg growth 3Y-20.62%
ROICexcg growth 5Y-18.04%
ROICexc growth 3Y-7.94%
ROICexc growth 5Y-3.06%
OM growth 3Y-7.9%
OM growth 5Y-4.11%
PM growth 3Y-9.34%
PM growth 5Y-2.62%
GM growth 3Y-2.71%
GM growth 5Y-2%
F-Score7
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 362.45% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 142.49 | ||
| Cash Conversion | 92.23% | ||
| Profit Quality | 100.74% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z | 16.85 |
F-Score7
WACC9.23%
ROIC/WACC2.44
Cap/Depr(3y)239.06%
Cap/Depr(5y)190.79%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.07%
Profit Quality(3y)77.04%
Profit Quality(5y)83.16%
High Growth Momentum
Growth
EPS 1Y (TTM)9.9%
EPS 3Y-13.62%
EPS 5Y-2.82%
EPS Q2Q%-2.44%
EPS Next Y6.91%
EPS Next 2Y10.27%
EPS Next 3Y10.66%
EPS Next 5Y13.21%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y15.8%
Revenue growth 5Y13.4%
Sales Q2Q%1.34%
Revenue Next Year4.45%
Revenue Next 2Y5.93%
Revenue Next 3Y6.76%
Revenue Next 5Y8.37%
EBIT growth 1Y3.62%
EBIT growth 3Y6.65%
EBIT growth 5Y8.74%
EBIT Next Year7.03%
EBIT Next 3Y9.24%
EBIT Next 5Y11.2%
FCF growth 1Y143.22%
FCF growth 3Y4.39%
FCF growth 5Y6.35%
OCF growth 1Y132.73%
OCF growth 3Y7.98%
OCF growth 5Y8.13%