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Monster Beverage (MNST)
NASDAQ:MNST

Monster Beverage (MNST) AI Stock Analysis

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Monster Beverage

(NASDAQ:MNST)

Rating:76Outperform
Price Target:
$68.00
▲(6.45%Upside)
Monster Beverage's stock is rated at 76 due to its strong financial performance, supported by solid revenue growth and profitability. Technical indicators show positive momentum, but the high P/E ratio suggests the stock may be overvalued. The balanced sentiment from the earnings call reflects both growth opportunities and challenges. Overall, Monster Beverage is in a healthy financial position, but valuation concerns temper the score.
Positive Factors
Energy Category Growth
There is confidence in the energy category recovery in both the US and globally, along with Monster's strong market positioning.
Topline Performance
A very positive tone on topline with expectations of continued topline upside to drive further stock outperformance.
Negative Factors
Cost Pressures
Higher aluminum tariff costs are expected to create modestly higher costs starting in Q3.
Stock Valuation
Much of the good news already looks to be embedded in the shares, however, as the stock is currently trading at a 10% premium to its one-year average P/E.

Monster Beverage (MNST) vs. SPDR S&P 500 ETF (SPY)

Monster Beverage Business Overview & Revenue Model

Company DescriptionMonster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. It offers carbonated energy drinks, non-carbonated, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to bottlers, full-service beverage distributors, as well as sells directly to retail grocery and speciality chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster HydroSport Super Fuel, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, as well as NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, Fury, and True North brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.
How the Company Makes MoneyMonster Beverage makes money primarily through the production, marketing, and sale of energy drinks. The company's revenue model is largely based on the sale of its branded beverages to a variety of distribution channels, including convenience stores, supermarkets, mass merchandisers, and online platforms. Key revenue streams include domestic and international sales, with a significant portion of its earnings coming from global markets outside the United States. Monster Beverage also benefits from strategic partnerships and distribution agreements, notably with Coca-Cola, which enhances its market reach and distribution efficiency. The company continually invests in marketing and sponsorships, particularly in extreme sports and music events, which further drive brand visibility and sales.

Monster Beverage Key Performance Indicators (KPIs)

Any
Any
Case Sales
Case Sales
Tracks the total number of beverage cases sold, indicating demand levels and market penetration for Monster Beverage products.
Chart InsightsMonster Beverage's case sales have shown a consistent upward trend, reaching a peak in Q3 2024. Despite a slight dip in Q4 2024, the growth trajectory remains strong, supported by global energy drink category expansion and strategic pricing. The latest earnings call highlights robust international sales growth and market share gains, although net sales faced challenges due to currency impacts and the underperforming Alcohol Brand segment. The company's focus on new product launches and supply chain optimization is expected to sustain momentum despite these headwinds.
Data provided by:Main Street Data

Monster Beverage Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 6.22%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong global growth in the energy drink category, an increase in gross profit margin, and successful market share gains in many regions. However, these positives were offset by a decline in net sales, challenges in the Alcohol Brand segment, and negative impacts from currency exchanges. The overall sentiment is balanced due to these mixed results.
Q1-2025 Updates
Positive Updates
Global Energy Drink Category Growth
The energy drink category grew globally with notable increases in regions such as EMEA (13.7%), APAC (13.6%), and LatAm (15.7%).
Increase in Gross Profit Margin
Gross profit as a percentage of net sales increased to 56.5% in Q1 2025 from 54.1% in Q1 2024, driven by pricing actions and supply chain optimization.
Successful Market Share Gains
Monster's market share increased in several key regions including Belgium, the Czech Republic, Denmark, Great Britain, Germany, and more.
Strong International Sales Growth
Net sales to customers outside the U.S. increased by 6.2% on a currency-neutral basis in Q1 2025.
Innovative Product Launches
Several new products were launched globally, including Monster Ultra Blue Hawaiian, Juice Monster Viking Berry, and others, with more planned for later in 2025.
Negative Updates
Decline in Net Sales
Reported net sales were $1.85 billion in Q1 2025, 2.3% lower than the $1.9 billion in Q1 2024.
Challenges in Alcohol Brand Segment
Net sales for the Alcohol Brand segment decreased by 38.1% compared to Q1 2024, largely due to prior year launches.
Currency Exchange Rate Impacts
Adverse changes in foreign currency exchange rates negatively impacted net sales by approximately $57.3 million in Q1 2025.
Market Share Decline in Key Markets
Monster experienced market share declines in regions like France, South Africa, and Japan.
Sales Challenges in Latin America
Net sales in the region decreased 3.1% in dollars, despite a 14.4% increase on a currency-neutral basis.
Company Guidance
During the Monster Beverage Corporation's first-quarter 2025 financial results conference call, several key metrics were highlighted. The energy category grew notably across different regions, with Nielsen reporting a 10% increase in the U.S., 13.7% in EMEA, 13.6% in APAC, and 15.7% in LatAm for a 13-week period ending in April 2025, all on an FX-neutral basis. The company's net sales for Q1 2025 were $1.85 billion, a decrease of 2.3% compared to $1.9 billion in Q1 2024. However, on a foreign currency-adjusted basis, net sales increased by 0.7%, or 1.9% excluding the Alcohol segment. Gross profit margins rose to 56.5% from 54.1% in the previous year, driven by pricing actions and supply chain optimization. Operating income grew by 5.1% to $569.7 million, while net income slightly increased to $443 million from $442 million in Q1 2024. Despite challenges such as adverse foreign exchange impacts and reduced sales in the Alcohol Brand segment, the company remained optimistic about its growth prospects, driven by strong consumer demand and strategic pricing decisions.

Monster Beverage Financial Statement Overview

Summary
Monster Beverage exhibits strong financial health with solid revenue growth, high profitability, and efficient cash flow management. The company has low leverage with a debt-to-equity ratio of 0.03 and a high equity ratio of 79.25%, indicating financial stability.
Income Statement
85
Very Positive
Monster Beverage shows a strong financial performance with consistent revenue growth and high profitability. The TTM gross profit margin is at 54.63%, indicating efficient cost management. Net profit margin remains solid at 20.27%, highlighting robust bottom-line profitability. Revenue growth rate from 2023 to 2024 was 4.94%, demonstrating a healthy upward trajectory. EBIT and EBITDA margins of 26.28% and 27.09% respectively, reflect strong operational efficiency.
Balance Sheet
80
Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. Return on Equity (ROE) is impressive at 23.16%, showcasing effective use of shareholder capital. The equity ratio is high at 79.25%, reflecting strong financial stability with a significant portion of assets funded by equity.
Cash Flow
88
Very Positive
Monster Beverage demonstrates excellent cash flow management. The free cash flow growth rate is 10.08% from 2023 to 2024, indicating strong cash generation capability. Operating cash flow to net income ratio is 1.34, and free cash flow to net income ratio is 1.18, both highlighting efficient cash conversion and liquidity.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.45B7.49B7.14B6.31B5.54B4.60B
Gross Profit
4.07B4.05B3.79B3.17B3.11B2.72B
EBIT
1.96B1.93B1.95B1.58B1.80B1.63B
EBITDA
2.06B2.01B2.02B1.58B1.80B1.63B
Net Income Common Stockholders
1.51B1.51B1.63B1.19B1.38B1.41B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.90B1.53B3.25B2.67B3.08B2.06B
Total Assets
8.23B7.72B9.69B8.29B7.80B6.20B
Total Debt
199.06M373.95M66.02M45.93M28.18M18.14M
Net Debt
-1.70B-1.16B-2.23B-1.26B-1.30B-1.16B
Total Liabilities
1.71B1.76B1.46B1.27B1.24B1.04B
Stockholders Equity
6.52B5.96B8.23B7.03B6.57B5.16B
Cash FlowFree Cash Flow
1.76B1.62B1.48B675.55M1.10B1.30B
Operating Cash Flow
2.02B1.93B1.72B887.70M1.16B1.36B
Investing Cash Flow
738.19M733.73M-193.40M-161.37M-992.02M-472.49M
Financing Cash Flow
-3.39B-3.33B-542.60M-706.94M34.82M-526.07M

Monster Beverage Technical Analysis

Technical Analysis Sentiment
Positive
Last Price63.88
Price Trends
50DMA
60.92
Positive
100DMA
56.95
Positive
200DMA
54.50
Positive
Market Momentum
MACD
0.66
Positive
RSI
59.93
Neutral
STOCH
68.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNST, the sentiment is Positive. The current price of 63.88 is above the 20-day moving average (MA) of 63.37, above the 50-day MA of 60.92, and above the 200-day MA of 54.50, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNST.

Monster Beverage Risk Analysis

Monster Beverage disclosed 39 risk factors in its most recent earnings report. Monster Beverage reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Monster Beverage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$10.61B131.049.19%-5.98%-65.57%
KOKO
78
Outperform
$303.54B28.2440.98%2.87%1.15%0.28%
77
Outperform
$4.20B22.5940.81%0.34%9.48%
76
Outperform
$61.50B41.6320.00%1.47%-4.87%
KDKDP
73
Outperform
$44.85B29.916.13%2.79%3.95%-28.73%
PEPEP
73
Outperform
$179.41B19.2450.06%4.35%-0.38%2.23%
65
Neutral
$8.81B15.014.71%3.72%3.60%-2.89%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MNST
Monster Beverage
63.88
14.75
30.02%
KO
Coca-Cola
70.52
9.68
15.91%
KDP
Keurig Dr Pepper
33.10
-0.68
-2.01%
FIZZ
National Beverage
44.75
-1.31
-2.84%
PEP
PepsiCo
131.41
-28.89
-18.02%
CELH
Celsius Holdings
43.49
-14.93
-25.56%

Monster Beverage Corporate Events

Executive/Board ChangesShareholder Meetings
Monster Beverage Re-elects Directors at Annual Meeting
Neutral
Jun 16, 2025

At the Annual Meeting of Stockholders held on June 12, 2025, Monster Beverage re-elected ten directors to serve until the 2026 annual meeting, with notable figures like Rodney C. Sacks and Hilton H. Schlosberg among them. Additionally, the stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers on a non-binding, advisory basis.

The most recent analyst rating on (MNST) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Monster Beverage stock, see the MNST Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Monster Beverage Director Gary Fayard to Step Down
Neutral
Apr 17, 2025

On April 14, 2025, Gary P. Fayard, a director on Monster Beverage Corporation’s Board, announced his decision not to seek reelection at the 2025 Annual Meeting of Stockholders. His decision was not due to any disagreements with the company, and he will continue his role until the meeting.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.