Monster Beverage Corp MNST

Morningstar Rating
$42.94 +0.80 (1.90%)
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Company Report

Monster Continues to Leverage Its Brand With Zero Sugar Innovations and New Markets

Although not the pioneer in energy drinks, Monster Beverage has built its perch in this attractive category through constant innovations that resonate with consumers as well as effective marketing that keeps its brand top of mind. The long-term distribution partnership with wide-moat Coca-Cola, effective since 2015, has further reinforced Monster’s competitive standing, affording the firm impressive distribution breadth and product accessibility that is hard to match by rivals. As such, we award a narrow economic moat rating for Monster.

Price vs Fair Value

MNST is trading at a LOCK|lQ?b premium.
Price
$42.14
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Strong energy-drink demand, coupled with Monster’s strong innovation pipeline, bodes well for high-single-digit top-line growth in the coming years.

Bears

Regulatory scrutiny and administrative restrictions in the US and Europe will likely persist and erode Monster’s brand intangibles and retail demand.

News

Trading Information

Previous Close Price
$42.14
Day Range
$42.11–42.99
52-Week Range
$32.94–50.17
Bid/Ask
$42.68 / $43.00
Shares Outstanding
1.96B
Market Cap
$84.12B
Volume/Avg
8M / 11M

Key Statistics

Price/Earnings (Normalized)
37.46
Price/Sales
9.03
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
0.08%

Company Profile

Monster Beverage is a leader in the energy drink category within the nonalcoholic ready-to-drink beverage market, generating two-thirds of revenue in the US and Canada. The well-known Monster trademark includes brands such as Monster Energy, Monster Ultra, Java Monster, and Juice Monster. The firm also owns other energy drink brands, such as Reign, NOS, Burn, Bang, and Mother, and brews and distributes beers and flavored malt beverages following the acquisition of a craft brewer in 2022. Monster controls branding and innovation but outsources beverage manufacturing and packaging to co-packers and finished goods distribution to bottlers in the global Coca-Cola system (pursuant to a 20-year agreement inked in 2015). Coke is the largest shareholder of Monster, owning a 20% stake.
Sector
Consumer Defensive
Industry
Beverages - Non-Alcoholic
Stock Style Box
Mid Growth
Total Number of Employees
6,891

Competitors

Valuation

Metric
MNST
PEP
KDP
Price/Earnings (Normalized)
37.4615.0214.61
Price/Book Value
8.827.761.67
Price/Sales
9.031.782.08
Price/Cash Flow
33.9211.8613.44
Price/Earnings
MNST
PEP
KDP

Financial Strength

Metric
MNST
PEP
KDP
Quick Ratio
3.100.690.20
Current Ratio
3.730.930.48
Interest Coverage
408.7312.662.89
Quick Ratio
MNST
PEP
KDP

Profitability

Metric
MNST
PEP
KDP
Return on Assets (Normalized)
21.93%10.57%4.54%
Return on Equity (Normalized)
26.86%56.34%11.70%
Return on Invested Capital (Normalized)
26.13%17.14%7.75%
Return on Assets
MNST
PEP
KDP

Beverages - Non-Alcoholic Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Coca-Cola Co
KO
LOCK|g$ZDX<v%LOCK|hzx$370B
PepsiCo Inc
PEP
LOCK|XQ<qr?!LOCK|!<$171B
Nongfu Spring Co Ltd Class H Ordinary Shares
NNFSF
—LOCK|qRrz$57B
Coca-Cola Europacific Partners PLC
CCEP
LOCK|w@PcN>LOCK|<&cF$45B
Keurig Dr Pepper Inc
KDP
LOCK|MJyk&@LOCK|f%c!$42B
Coca-Cola Femsa SAB de CV Series L
COCSF
—LOCK|Sf$23B
Coca-Cola Femsa SAB de CV ADR
KOF
LOCK|!G>>M#LOCK|jc>$23B
Coca-Cola HBC AG
CCHBF
—LOCK|J<P@$20B
Celsius Holdings Inc
CELH
LOCK|%g&qBnBLOCK|VJ$7B

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