MONSTER BEVERAGE CORP (MNST) Stock Fundamental Analysis
NASDAQ:MNST - Nasdaq - US61174X1090 - Common Stock - Currency: USD
Overall MNST gets a fundamental rating of 6 out of 10. We evaluated MNST against 32 industry peers in the Beverages industry. MNST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, MNST is valued expensive at the moment. This makes MNST very considerable 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.
MNST had positive earnings in each of the past 5 years.
Each year in the past 5 years MNST had a positive operating cash flow.
1.2 Ratios
MNST has a better Return On Assets (19.55%) than 96.88% of its industry peers.
With a decent Return On Equity value of 25.33%, MNST is doing good in the industry, outperforming 78.13% of the companies in the same industry.
MNST has a Return On Invested Capital of 24.03%. This is amongst the best in the industry. MNST outperforms 96.88% of its industry peers.
MNST had an Average Return On Invested Capital over the past 3 years of 19.65%. This is significantly above the industry average of 12.12%.
The last Return On Invested Capital (24.03%) for MNST is above the 3 year average (19.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 25.33% | ||
| ROIC | 24.03% |
ROA(3y)16.92%
ROA(5y)18.23%
ROE(3y)20.7%
ROE(5y)22.08%
ROIC(3y)19.65%
ROIC(5y)20.53%
1.3 Margins
MNST's Profit Margin of 20.14% is amongst the best of the industry. MNST outperforms 90.63% of its industry peers.
MNST's Profit Margin has declined in the last couple of years.
MNST's Operating Margin of 27.46% is amongst the best of the industry. MNST outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of MNST has declined.
MNST's Gross Margin of 54.04% is fine compared to the rest of the industry. MNST outperforms 68.75% of its industry peers.
In the last couple of years the Gross Margin of MNST has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.46% | ||
| PM (TTM) | 20.14% | ||
| GM | 54.04% |
OM growth 3Y-5.5%
OM growth 5Y-3.99%
PM growth 3Y-6.78%
PM growth 5Y-5.25%
GM growth 3Y-1.24%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MNST is creating value.
Compared to 1 year ago, MNST has less shares outstanding
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 22.96. This indicates that MNST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MNST (22.96) is better than 96.88% of its industry peers.
The Debt to FCF ratio of MNST is 0.23, which is an excellent value as it means it would take MNST, only 0.23 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.23, MNST belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
MNST has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, MNST is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.23 | ||
| Altman-Z | 22.96 |
ROIC/WACC2.68
WACC8.98%
2.3 Liquidity
MNST has a Current Ratio of 3.32. This indicates that MNST is financially healthy and has no problem in meeting its short term obligations.
MNST's Current ratio of 3.32 is amongst the best of the industry. MNST outperforms 87.50% of its industry peers.
MNST has a Quick Ratio of 2.65. This indicates that MNST is financially healthy and has no problem in meeting its short term obligations.
MNST has a Quick ratio of 2.65. This is amongst the best in the industry. MNST outperforms 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
MNST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.21%.
MNST shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.72% yearly.
MNST shows a small growth in Revenue. In the last year, the Revenue has grown by 4.94%.
MNST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.27% yearly.
EPS 1Y (TTM)3.21%
EPS 3Y-10.82%
EPS 5Y-4.72%
EPS Q2Q%0%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y10.58%
Revenue growth 5Y12.27%
Sales Q2Q%4.74%
3.2 Future
Based on estimates for the next years, MNST will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.22% on average per year.
Based on estimates for the next years, MNST will show a quite strong growth in Revenue. The Revenue will grow by 8.08% on average per year.
EPS Next Y16.02%
EPS Next 2Y13.56%
EPS Next 3Y12.86%
EPS Next 5Y13.22%
Revenue Next Year6.74%
Revenue Next 2Y7.16%
Revenue Next 3Y7.41%
Revenue Next 5Y8.08%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.28, MNST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MNST is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MNST to the average of the S&P500 Index (28.29), we can say MNST is valued slightly more expensively.
A Price/Forward Earnings ratio of 31.27 indicates a quite expensive valuation of MNST.
MNST's Price/Forward Earnings is on the same level as the industry average.
MNST is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.28 | ||
| Fwd PE | 31.27 |
4.2 Price Multiples
MNST's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MNST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.15 | ||
| EV/EBITDA | 26.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MNST does not grow enough to justify the current Price/Earnings ratio.
MNST has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MNST's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y13.56%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
MNST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.41
+0.46 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners68.51%
Inst Owner Change0.56%
Ins Owners0.41%
Ins Owner Change24.52%
Market Cap56.84B
Analysts74.38
Price Target57.71 (-1.2%)
Short Float %3.03%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)-7.63%
Min EPS beat(2)-8.27%
Max EPS beat(2)-6.99%
EPS beat(4)0
Avg EPS beat(4)-7.88%
Min EPS beat(4)-11.44%
Max EPS beat(4)-4.82%
EPS beat(8)2
Avg EPS beat(8)-3.23%
EPS beat(12)2
Avg EPS beat(12)-6.35%
EPS beat(16)3
Avg EPS beat(16)-5.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-7.47%
Max Revenue beat(4)-0.98%
Revenue beat(8)0
Avg Revenue beat(8)-3.04%
Revenue beat(12)2
Avg Revenue beat(12)-2.5%
Revenue beat(16)4
Avg Revenue beat(16)-1.47%
PT rev (1m)0.85%
PT rev (3m)2%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.28 | ||
| Fwd PE | 31.27 | ||
| P/S | 7.59 | ||
| P/FCF | 34.15 | ||
| P/OCF | 29.47 | ||
| P/B | 9.54 | ||
| P/tB | 17.7 | ||
| EV/EBITDA | 26.05 |
EPS(TTM)1.61
EY2.76%
EPS(NY)1.87
Fwd EY3.2%
FCF(TTM)1.71
FCFY2.93%
OCF(TTM)1.98
OCFY3.39%
SpS7.7
BVpS6.12
TBVpS3.3
PEG (NY)2.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.55% | ||
| ROE | 25.33% | ||
| ROCE | 31.07% | ||
| ROIC | 24.03% | ||
| ROICexc | 31.28% | ||
| ROICexgc | 67.94% | ||
| OM | 27.46% | ||
| PM (TTM) | 20.14% | ||
| GM | 54.04% | ||
| FCFM | 22.21% |
ROA(3y)16.92%
ROA(5y)18.23%
ROE(3y)20.7%
ROE(5y)22.08%
ROIC(3y)19.65%
ROIC(5y)20.53%
ROICexc(3y)29.02%
ROICexc(5y)32.32%
ROICexgc(3y)64.44%
ROICexgc(5y)84.58%
ROCE(3y)25.4%
ROCE(5y)26.54%
ROICexcg growth 3Y-12.83%
ROICexcg growth 5Y-13.62%
ROICexc growth 3Y-5.49%
ROICexc growth 5Y-2.02%
OM growth 3Y-5.5%
OM growth 5Y-3.99%
PM growth 3Y-6.78%
PM growth 5Y-5.25%
GM growth 3Y-1.24%
GM growth 5Y-1.56%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.23 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 328.31% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 81.42 | ||
| Cash Conversion | 90.21% | ||
| Profit Quality | 110.3% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.65 | ||
| Altman-Z | 22.96 |
F-Score7
WACC8.98%
ROIC/WACC2.68
Cap/Depr(3y)319.34%
Cap/Depr(5y)225.06%
Cap/Sales(3y)3.21%
Cap/Sales(5y)2.29%
Profit Quality(3y)86.9%
Profit Quality(5y)86.95%
High Growth Momentum
Growth
EPS 1Y (TTM)3.21%
EPS 3Y-10.82%
EPS 5Y-4.72%
EPS Q2Q%0%
EPS Next Y16.02%
EPS Next 2Y13.56%
EPS Next 3Y12.86%
EPS Next 5Y13.22%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y10.58%
Revenue growth 5Y12.27%
Sales Q2Q%4.74%
Revenue Next Year6.74%
Revenue Next 2Y7.16%
Revenue Next 3Y7.41%
Revenue Next 5Y8.08%
EBIT growth 1Y5.32%
EBIT growth 3Y4.5%
EBIT growth 5Y7.79%
EBIT Next Year13.77%
EBIT Next 3Y10.87%
EBIT Next 5Y10.65%
FCF growth 1Y11.24%
FCF growth 3Y14.4%
FCF growth 5Y10.46%
OCF growth 1Y12.27%
OCF growth 3Y18.61%
OCF growth 5Y11.61%