MONSTER BEVERAGE CORP (MNST) Stock Fundamental Analysis
NASDAQ:MNST - Nasdaq - US61174X1090 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MNST. MNST was compared to 32 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make MNST a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year MNST was profitable.
In the past year MNST had a positive cash flow from operations.
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
With an excellent Return On Assets value of 19.55%, MNST belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.33%, MNST is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.03%, MNST belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MNST is significantly above the industry average of 12.21%.
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
With an excellent Profit Margin value of 20.14%, MNST belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Profit Margin of MNST has declined.
MNST has a better Operating Margin (27.46%) than 84.38% of its industry peers.
MNST's Operating Margin has declined in the last couple of years.
The Gross Margin of MNST (54.04%) is better than 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.
MNST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MNST has been reduced compared to 5 years ago.
The debt/assets ratio for MNST is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 23.24 indicates that MNST is not in any danger for bankruptcy at the moment.
MNST's Altman-Z score of 23.24 is amongst the best of the industry. MNST outperforms 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.
MNST has a better Debt to FCF ratio (0.23) than 84.38% of its industry peers.
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 | 23.24 |
ROIC/WACC2.72
WACC8.83%
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.
A Quick Ratio of 2.65 indicates that MNST has no problem at all paying its short term obligations.
MNST has a better Quick ratio (2.65) than 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%.
Measured over the past years, MNST shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.72% on average per year.
The Revenue has been growing slightly by 4.94% in the past year.
The Revenue has been growing by 12.27% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 8.08% on average over the next years. This is quite good.
EPS Next Y16.02%
EPS Next 2Y13.56%
EPS Next 3Y12.86%
EPS Next 5Y13.22%
Revenue Next Year7.01%
Revenue Next 2Y7.32%
Revenue Next 3Y7.6%
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.
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 37.34, the valuation of MNST can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as MNST.
The average S&P500 Price/Earnings ratio is at 28.88. MNST is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 32.18, the valuation of MNST can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNST is on the same level as its industry peers.
MNST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 32.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNST is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
MNST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.15 | ||
| EV/EBITDA | 26.43 |
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.
The excellent profitability rating of MNST 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)2.33
PEG (5Y)N/A
EPS Next 2Y13.56%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
No dividends for MNST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
60.12
+0.87 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners68.51%
Inst Owner Change0.53%
Ins Owners0.41%
Ins Owner Change24.52%
Market Cap58.51B
Analysts74.38
Price Target59.4 (-1.2%)
Short Float %2.75%
Short Ratio2.92
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)3.81%
PT rev (3m)4.99%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 32.18 | ||
| P/S | 7.81 | ||
| P/FCF | 35.15 | ||
| P/OCF | 30.34 | ||
| P/B | 9.82 | ||
| P/tB | 18.22 | ||
| EV/EBITDA | 26.43 |
EPS(TTM)1.61
EY2.68%
EPS(NY)1.87
Fwd EY3.11%
FCF(TTM)1.71
FCFY2.84%
OCF(TTM)1.98
OCFY3.3%
SpS7.7
BVpS6.12
TBVpS3.3
PEG (NY)2.33
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 | 23.24 |
F-Score7
WACC8.83%
ROIC/WACC2.72
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 Year7.01%
Revenue Next 2Y7.32%
Revenue Next 3Y7.6%
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%