Monster Beverage logged a -2.5% change during today's afternoon session, and is now trading at a price of $62.77 per share.
Monster Beverage returned gains of 38.0% last year, with its stock price reaching a high of $66.75 and a low of $45.7. Over the same period, the stock outperformed the S&P 500 index by 24.9%. More recently, the company's 50-day average price was $61.72. Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. Based in Corona, CA, the Large-Cap Consumer Staples company has 5,527 full time employees. Monster Beverage has not offered a dividend during the last year.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,201 | $4,599 | $5,541 | $6,311 | $7,140 | $7,493 |
| Gross Margins | 60% | 59% | 56% | 50% | 53% | 54% |
| Net Margins | 26% | 31% | 25% | 19% | 23% | 20% |
| Net Income (M) | $1,108 | $1,410 | $1,377 | $1,192 | $1,631 | $1,509 |
| Net Interest Expense (M) | $13 | -$7 | $4 | -$13 | $115 | $25 |
| Depreciation & Amort. (M) | $61 | $57 | $50 | $61 | $69 | $80 |
| Diluted Shares (M) | 1,093 | 1,070 | 1,071 | 1,066 | 1,058 | 1,013 |
| Earnings Per Share | $1.01 | $1.32 | $1.29 | $1.12 | $1.54 | $1.49 |
| EPS Growth | n/a | 30.69% | -2.27% | -13.18% | 37.5% | -3.25% |
| Avg. Price | $29.59 | $36.63 | $45.87 | $42.93 | $57.61 | $63.05 |
| P/E Ratio | 29.01 | 27.96 | 35.28 | 37.99 | 36.93 | 43.48 |
| Free Cash Flow (M) | $1,012 | $1,315 | $1,112 | $699 | $1,496 | $1,664 |
| CAPEX (M) | $102 | $49 | $44 | $189 | $221 | $264 |
| Current Ratio | 3.5 | 4.19 | 4.85 | 4.76 | 4.81 | 3.32 |
Monster Beverage has rapidly growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display an excellent current ratio of 3.32 and positive EPS growth.
The Market May Be Overvaluing Monster Beverage's Earnings and Assets:
Monster Beverage has a trailing twelve month P/E ratio of 38.3, compared to an average of 25.91 for the Consumer Staples sector. Based on its EPS guidance of $1.87, the company has a forward P/E ratio of 33.0. The 9.2% compound average growth rate of Monster Beverage's historical and projected earnings per share yields a PEG ratio of 4.17. This suggests that these shares are overvalued. Furthermore, Monster Beverage is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.52 is higher than the sector average of 3.03. The company's shares are currently trading 347.0% below their Graham number. Overall, Monster Beverage's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Monster Beverage Has an Analyst Consensus of Some Upside Potential:
The 23 analysts following Monster Beverage have set target prices ranging from $50.0 to $75.0 per share, for an average of $66.52 with a buy rating. The company is trading -5.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Monster Beverage has an average amount of shares sold short because 2.7% of the company's shares are sold short. Institutions own 68.8% of the company's shares, and the insider ownership rate stands at 28.6%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 7% stake in the company is worth $4,102,376,785.
