Monster Beverage (MNST) AI Stock Analysis

• Market Cap: $61.50B
• Dividend Yield: N/A
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 41.6
• Beta (1Y): 0.37
• Revenue Growth: 1.47%
• EPS Growth: -4.87%
• Country: US
• Employees: 5,527
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.47
• Shares Outstanding: 975,246,150
• 10 Day Avg. Volume: 5,062,222
• 30 Day Avg. Volume: 5,348,249
• PEG Ratio: 2.13
• Price to Book (P/B): 8.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.35
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 12.83
• Enterprise Value/Ebitda: 6.35
• 1Y Price Target: $65.14
• Price Target Upside: 1.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• 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 Business Overview & Revenue Model

Company Description

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. 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 Money

Monster 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.45B	7.49B	7.14B	6.31B	5.54B	4.60B
	Gross Profit
4.07B	4.05B	3.79B	3.17B	3.11B	2.72B
	EBIT
1.96B	1.93B	1.95B	1.58B	1.80B	1.63B
	EBITDA
2.06B	2.01B	2.02B	1.58B	1.80B	1.63B
	Net Income Common Stockholders
1.51B	1.51B	1.63B	1.19B	1.38B	1.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.90B	1.53B	3.25B	2.67B	3.08B	2.06B
	Total Assets
8.23B	7.72B	9.69B	8.29B	7.80B	6.20B
	Total Debt
199.06M	373.95M	66.02M	45.93M	28.18M	18.14M
	Net Debt
-1.70B	-1.16B	-2.23B	-1.26B	-1.30B	-1.16B
	Total Liabilities
1.71B	1.76B	1.46B	1.27B	1.24B	1.04B
	Stockholders Equity
6.52B	5.96B	8.23B	7.03B	6.57B	5.16B
Cash Flow		Free Cash Flow
1.76B	1.62B	1.48B	675.55M	1.10B	1.30B
	Operating Cash Flow
2.02B	1.93B	1.72B	887.70M	1.16B	1.36B
	Investing Cash Flow
738.19M	733.73M	-193.40M	-161.37M	-992.02M	-472.49M
	Financing Cash Flow
-3.39B	-3.33B	-542.60M	-706.94M	34.82M	-526.07M

Monster Beverage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CELH	79 Outperform	$10.61B	131.04	9.19%	―	-5.98%	-65.57%
KO	78 Outperform	$303.54B	28.24	40.98%	2.87%	1.15%	0.28%
FIZZ	77 Outperform	$4.20B	22.59	40.81%	―	0.34%	9.48%
MNST	76 Outperform	$61.50B	41.63	20.00%	―	1.47%	-4.87%
KDP	73 Outperform	$44.85B	29.91	6.13%	2.79%	3.95%	-28.73%
PEP	73 Outperform	$179.41B	19.24	50.06%	4.35%	-0.38%	2.23%
Sector *	65 Neutral	$8.81B	15.01	4.71%	3.72%	3.60%	-2.89%

Monster Beverage Corporate Events

Monster Beverage Re-elects Directors at Annual Meeting

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.

Monster Beverage Director Gary Fayard to Step Down

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.