Monster Beverage Corporation
Monster Beverage Corporation Fundamental Analysis
Monster Beverage Corporation (MNST) shows strong financial fundamentals with a PE ratio of 41.60, profit margin of 23.11%, and ROE of 25.46%. The company generates $8.8B in annual revenue with strong year-over-year growth of 10.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MNST's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMNST demonstrates superior asset utilization.
Valuation Score
ModerateMNST shows balanced valuation metrics.
Growth Score
ExcellentMNST delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMNST maintains a strong and stable balance sheet.
Profitability Score
ExcellentMNST achieves industry-leading margins.
Key Financial Metrics
Is MNST Expensive or Cheap?
P/E Ratio
MNST trades at 41.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MNST's PEG of 1.13 indicates fair valuation.
Price to Book
The market values Monster Beverage Corporation at 9.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.77 times EBITDA. This signals the market has high growth expectations.
How Well Does MNST Make Money?
Net Profit Margin
For every $100 in sales, Monster Beverage Corporation keeps $23.11 as profit after all expenses.
Operating Margin
Core operations generate 29.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.46 in profit for every $100 of shareholder equity.
ROA
Monster Beverage Corporation generates $18.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Monster Beverage Corporation produces operating cash flow of $2.19B, showing steady but balanced cash generation.
Free Cash Flow
Monster Beverage Corporation generates strong free cash flow of $2.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.12 in free cash annually.
FCF Yield
MNST converts 2.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How MNST Stacks Against Its Sector Peers
| Metric | MNST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.60 | 21.04 | Worse (Expensive) |
| ROE | 25.46% | 1170.00% | Weak |
| Net Margin | 23.11% | -2432.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 3.26 | 2.51 | Strong Liquidity |
| ROA | 18.74% | -196096.00% (disorted) | Strong |
MNST outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Monster Beverage Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
95.78%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
46.73%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
66.95%
Industry Style: Defensive, Dividend, Low Volatility
High Growth