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Monster Beverage Corp MNST

Morningstar Rating
$55.11 −0.03 (0.05%)
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Company Report

Narrow-Moat Monster Poised to Expand Volume With Innovation Pipeline and Coca-Cola Alliance

Although not the pioneer in energy drinks, Monster has earned its perch in this attractive category through innovations that resonate with consumers and effective marketing that keeps its core brand top of mind. The long-term strategic alliance with wide-moat Coca-Cola, effective since 2015, further advances Monster’s competitive standing, affording the firm impressive distribution breath and product availability 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 10% premium.
Price
$55.11
Fair Value
$79.00
Uncertainty
Medium
1-Star Price
$11.30
5-Star Price
$21.00
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 U.S. and Europe will likely persist and erode Monster’s brand intangibles and retail demand.

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News

Trading Information

Previous Close Price
$55.14
Day Range
$54.8055.45
52-Week Range
$47.1360.47
Bid/Ask
$54.12 / $55.80
Market Cap
$57.34 Bil
Volume/Avg
10 / 5.3 Mil

Key Statistics

Price/Earnings (Normalized)
38.14
Price/Sales
8.55
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.17%

Company Profile

Monster Beverage is a leader in the energy drink subsegment of the nonalcoholic beverage market, generating two thirds of revenue in the U.S. 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, 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 copackers 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 with a 19.5% stake.
Sector
Consumer Defensive
Industry
Beverages - Non-Alcoholic
Stock Style Box
Large Growth
Total Number of Employees
5,296

Competitors

Valuation

Metric
MNST
KDP
KO
Price/Earnings (Normalized)
38.1417.8722.37
Price/Book Value
7.381.719.84
Price/Sales
8.552.985.62
Price/Cash Flow
35.1314.7620.67
Price/Earnings
MNST
KDP
KO

Financial Strength

Metric
MNST
KDP
KO
Quick Ratio
3.600.200.72
Current Ratio
4.510.381.13
Interest Coverage
6.568.89
Quick Ratio
MNST
KDP
KO

Profitability

Metric
MNST
KDP
KO
Return on Assets (Normalized)
18.46%4.86%12.05%
Return on Equity (Normalized)
21.94%9.95%45.69%
Return on Invested Capital (Normalized)
21.63%7.37%17.60%
Return on Assets
MNST
KDP
KO
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Beverages - Non-Alcoholic Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
KO
Coca-Cola CoSlfm$263.7 Bil
PEP
PepsiCo IncHxb$231.2 Bil
NNFSF
Nongfu Spring Co Ltd Class H Ordinary SharesNjp$64.6 Bil
KDP
Keurig Dr Pepper IncTskgtv$42.5 Bil
CCEP
Coca-Cola Europacific Partners PLCGcybv$31.3 Bil
COCSF
Coca-Cola Femsa SAB de CV Series LFczt$22.7 Bil
KOF
Coca-Cola Femsa SAB de CV ADRFfcv$22.7 Bil
CELH
Celsius Holdings IncDtzt$14.9 Bil
PRMW
Primo Water CorpXkn$2.4 Bil

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