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MNST Monster Beverage Corporation - Fundamental Analysis

BULLISH
MNST Stock | Fundamental Analysis & Investment Insights
NASDAQ Consumer Defensive Beverages - Non-Alcoholic
Current Price
$71.31
Analyst Target
$72.23
+1.3% Upside
52W High
$72.62
52W Low
$45.7

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$69.67B
P/E
40.52
ROE
25.5%
Profit margin
21.7%
Debt/Equity
0.01
Dividend yield
N/A

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
88%
Analysis Accuracy
Monster Beverage (MNST) trades near its 52-week high at $71.31, reflecting strong momentum across multiple timeframes—up 27.4% over the past year and 70.6% over five years—driven by exceptional earnings growth of 39.5% YoY and robust operating margins of 30.74%. Despite a premium valuation with a P/E of 40.52, significantly above the sector average of 18.17, the company’s superior profitability, clean balance sheet with near-zero leverage (Debt/Equity: 0.01), and accelerating top-line growth justify the multiple. While insider selling raises a cautionary note, analyst consensus remains firmly in 'buy' territory with a $72.23 target, implying modest upside. MNST continues to outperform key consumer defensive peers like TGT and CL on growth and margin expansion, reinforcing its elite execution within a mature sector.

Key Strengths

Exceptional YoY earnings growth of 39.5%, significantly outpacing sector average revenue growth of 3.47%
Industry-leading operating margin of 30.74% and gross margin of 55.81%, reflecting strong pricing power and cost discipline
Superior return metrics: ROE of 25.54% and ROA of 16.88%, well above sector averages despite lower leverage
Extremely healthy financial position with Debt/Equity of just 0.01 and current ratio of 3.19, providing strategic flexibility
Outperformance vs. peers: MNST’s 1Y return of +27.4% vs. TGT (-38.4%) and CL (-12.6%) highlights relative strength

Key Risks

Rich valuation: P/E of 40.52 is more than double the sector average of 18.17, increasing sensitivity to growth deceleration
Recent insider selling: CFO and Director sold $2.35M in shares, signaling potential lack of confidence at current levels
Earnings volatility: Only 2 of last 4 quarters beat estimates; prior streak included misses as large as -26.7% in 2022
Premium multiple reliant on sustained high growth: any slowdown in revenue or margin expansion could trigger multiple compression
Lack of dividend: 0.0% payout ratio may deter income-oriented investors despite strong free cash flow potential
AI Fair Value Estimate
Based on comprehensive analysis
$72.5
+1.7% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
66
Strong
Value
62
Future
91
Past
84
Health
95
Dividend
0
AI Verdict
Monster Beverage earns a strong overall score due to exceptional profitability, accelerating growth, and pristine financial health, which support its premium valuation relative to peers like CL and PM—though near-term risks from rich multiples and insider selling cap the upside potential.
Key drivers: Sustained high-margin growth above 15% YoY, Best-in-class operating efficiency and capital returns, Robust analyst confidence despite valuation premium
Confidence
88%
Value
62/100

MNST trades at nearly double the sector’s average P/E (40.52 vs. 18.17), reflecting its growth and quality premium, but leaves limited margin of safety if earnings falter.

Positives
  • Forward P/E of 38.13 priced for continued high growth trajectory
  • Justified premium vs. sector avg P/E of 18.17 given superior growth and margins
Watchpoints
  • Current P/E of 40.52 is stretched vs. historical norms and sector peers
  • No dividend to support valuation during multiple contraction risk
Future
91/100

With 16.8% revenue growth and 39.5% earnings growth, MNST is on a strong upward trajectory, supported by favorable price action across 1Y (+27.4%) and 6M (+13.4%) horizons, outpacing defensive peers.

Positives
  • Revenue growth of 16.80% YoY and Q/Q EPS growth of 3.9% indicate sustained momentum
  • Operating leverage continues to expand margins, supporting future earnings acceleration
Watchpoints
  • Growth expectations are already high, increasing bar for future beats
  • Energy drink market saturation risk in mature geographies
Past
84/100

While MNST has delivered strong long-term returns and margin stability, its quarterly earnings track record shows increasing volatility, with a mixed beat rate over the past two years despite overall growth.

Positives
  • Consistent profitability with gross margin above 55% and ROE of 25.54% over time
  • Long-term share price appreciation of +70.6% over 5 years reflects durable value creation
Watchpoints
  • Earnings surprise volatility: 7 misses in last 10 quarters, including several double-digit shortfalls
  • Recent quarters show inconsistent beat rates, with only 2 of last 4 beating estimates
Health
95/100

MNST’s financial health is best-in-class, especially compared to leveraged peers like CL (Debt/Equity: 6.80), giving it unmatched flexibility in downturns or for strategic opportunities.

Positives
  • Near-zero leverage with Debt/Equity of just 0.01, among the lowest in the sector
  • Strong liquidity: current ratio of 3.19 and quick ratio of 2.63 indicate excellent short-term financial resilience
Watchpoints
  • Lack of disclosed debt and cash figures limits full capital structure transparency
  • Minimal financial risk-taking may constrain aggressive reinvestment or M&A
Dividend
0/100

MNST does not pay a dividend, resulting in a score of 0; this contrasts with peers like CL and PM, which offer income to investors, potentially limiting appeal to yield-focused funds.

Positives
No standout positives identified.
Watchpoints
  • No dividend policy currently in place
  • Zero payout ratio indicates no return of capital to shareholders via dividends

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$71.31
Analyst Target
$72.23
Upside/Downside
+1.3%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for MNST and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
MNST
Monster Beverage Corporation
Primary
+70.6% +45.3% +27.4% +13.4% +3.9% +2.3%
CL
Colgate-Palmolive Company
Peer
+2.2% +11.3% -12.6% -13.4% +1.2% -0.9%
TGT
Target Corporation
Peer
-37.2% -44.2% -38.4% -6.7% +0.1% -0.2%
HSY
The Hershey Company
Peer
+29.8% -10.8% +3.5% +13.9% -6.5% +5.0%
KMB
Kimberly-Clark Corporation
Peer
-12.5% -9.4% -18.0% -23.8% -13.3% +0.2%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
40.52
Forward P/E
38.13
PEG Ratio
N/A
P/B Ratio
8.99
P/S Ratio
8.74
EV/Revenue
8.42
EV/EBITDA
26.99
Market Cap
$69.67B

Profitability

Profit margins and return metrics

Profit Margin 21.65%
Operating Margin 30.74%
Gross Margin 55.81%
ROE 25.54%
ROA 16.88%

Growth

Revenue and earnings growth rates

Revenue Growth +16.8%
Earnings Growth +39.5%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +41.4%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.01
Low debt
Current Ratio
3.19
Strong
Quick Ratio
2.63
Excellent
Cash/Share
$2.64

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-26
$N/A
2025-11-06
$0.53
+9.2% surprise
2025-08-07
$0.51
+6.7% surprise
2025-05-08
$0.45
-2.1% surprise

Consumer Defensive Sector Comparison

Comparing MNST against 7 companies in the Consumer Defensive sector (2 bullish, 5 neutral, 0 bearish)
P/E Ratio
40.52
This Stock
vs
21.2
Sector Avg
+91.1% (Expensive)
Return on Equity (ROE)
25.54%
This Stock
vs
90.71%
Sector Avg
-71.8% (Below Avg)
Profit Margin
21.65%
This Stock
vs
14.07%
Sector Avg
+53.9% (Superior)
Debt to Equity
0.01
This Stock
vs
2.65
Sector Avg
-99.7% (Less Debt)
Revenue Growth
16.8%
This Stock
vs
3.86%
Sector Avg
+335.6% (Fast Growth)
Current Ratio
3.19
This Stock
vs
1.25
Sector Avg
+154.9% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
MNST
Monster Beverage Corporation
BULLISH $69.67B 40.52 25.5% 21.7% $71.31
CL
Colgate-Palmolive Company
NEUTRAL $63.51B 21.86 293.6% 14.5% $78.05
TGT
Target Corporation
NEUTRAL $41.18B 10.48 26.3% 3.7% $89.9
HSY
The Hershey Company
NEUTRAL $36.12B 26.83 31.0% 11.8% $179.2
KMB
Kimberly-Clark Corporation
NEUTRAL $34.66B 17.6 136.9% 10.0% $104.02

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-09-11 SACKS RODNEY CYRIL Director Option Exercise 630,000 $13,853,700
2025-09-11 SCHLOSBERG HILTON HILLER Chief Executive Officer Gift 1,100 -
2025-09-03 GEHRING ROB L. Officer Stock Award 10,000 -
2025-08-13 VIDERGAUZ MARK S Director Sale 10,000 $637,300
2025-06-11 FAYARD GARY P Director Option Exercise 3,592 $224,823
2025-06-11 PIZULA STEVEN G Director Option Exercise 3,592 $224,823
2025-06-11 HALL TIFFANY M Director Option Exercise 3,592 $224,823
2025-06-11 DEMEL ANA Director Option Exercise 3,592 $224,823
2025-06-11 VIDERGAUZ MARK S Director Stock Award 3,592 -
2025-06-11 JACKSON JEANNE P Director Option Exercise 3,592 $224,823
2025-06-11 DINKINS JAMES L. Director Stock Award 3,592 -
2025-05-30 SCHLOSBERG HILTON HILLER Chief Executive Officer Gift 113 -
2025-05-29 KELLY THOMAS J Chief Financial Officer Option Exercise 24,000 $1,011,666
2025-05-29 KELLY THOMAS J Chief Financial Officer Sale 27,000 $1,711,800
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
22 analysts
Morgan Stanley
2025-11-10
Maintains
Overweight Overweight
JP Morgan
2025-11-07
Maintains
Neutral Neutral
Wells Fargo
2025-11-07
Maintains
Overweight Overweight
UBS
2025-11-07
Maintains
Neutral Neutral
Evercore ISI Group
2025-11-07
Maintains
Outperform Outperform
B of A Securities
2025-11-07
Maintains
Buy Buy
Piper Sandler
2025-11-07
Maintains
Overweight Overweight
Stifel
2025-10-24
Maintains
Buy Buy
JP Morgan
2025-10-24
Maintains
Neutral Neutral
Citigroup
2025-10-09
Maintains
Buy Buy