One-glance verdict
Within fair range
$42.24 our estimate vs market $43.82
Wall Street consensus: $50.26 (19.0% higher than our fair-value estimate)
4% above our estimate
Fundamentals snapshot
Monster Beverage Corporation
MNST · NMS · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$43.82
52-week range
$31.04 - $50.17
Market cap
$85.85B
Balance sheet
Healthy
38.30x Strong cushion
Net cash $3.33B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 11.1% last year.
- Reward Returns 25.7% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 4.8% above its 5-year average P/E.
What this company does
Monster Beverage Corporation
Monster Beverage Corporation primarily sells energy drinks, with its famous Monster brand generating the most revenue, though it has expanded into other drinks like teas and alcohol. The company's success relies on aggressive marketing and a vast global supply chain (the entire network for making a product and selling it to customers) to ensure its drinks are available in stores everywhere.
How the company got here
Originally founded as Hansen Natural Corporation in 1985, the company initially sold a variety of natural sodas and juices. The major turning point came in 2002 with the launch of Monster Energy, which quickly became the centerpiece of their business. Recognizing the massive success of their energy drink line, the company renamed itself Monster Beverage Corporation in 2012 to better reflect its primary focus. A key partnership with The Coca-Cola Company in 2015 expanded its global distribution and brought several of Coca-Cola's energy drink brands under its umbrella.
What it actually does
Monster Beverage Corporation creates, markets, and sells a wide range of drinks, with a heavy focus on beverages that provide a boost of energy. You would recognize their products in the coolers of convenience stores, gas stations, and supermarkets, often in tall cans with bold designs. While best known for energy drinks, they also offer a variety of other beverages, including iced teas, fruit juices, and even some alcoholic drinks like craft beers and hard seltzers.
Monster Energy® Drinks
This is the company's main business, making up the vast majority of its revenue (the money it brings in from sales). This segment includes the flagship Monster Energy drinks, as well as other popular brands like Reign Total Body Fuel, Bang Energy, and Monster's own coffee and tea-based energy drinks. Consumers, typically young adults, buy these drinks for a boost of energy and focus. The company sells these ready-to-drink beverages to a wide network of bottlers and distributors, who then get them into stores worldwide.
Strategic Brands
This part of the company is a smaller, but still significant, piece of the business. It's made up of various energy drink brands that Monster acquired from The Coca-Cola Company, as well as their own more affordably priced energy drink lines. Instead of just selling finished drinks, this segment often sells concentrates (the flavor and ingredient base of the drink) to bottling partners, who then add water and sweetener to create the final product. This business model generally has a higher gross margin (the profit made on each sale before accounting for general business expenses) compared to their main energy drink segment.
Alcohol Brands
This is a relatively small and newer part of Monster's business. Through acquisitions, the company entered the alcoholic beverage market and now sells a variety of craft beers, flavored malt beverages, and hard seltzers. These products are sold primarily to beer distributors in the United States. This segment represents a move to diversify their product offerings beyond their core energy drink focus.
Other
This is the smallest segment of the company and includes sales from its subsidiary, American Fruits and Flavors (AFF). AFF creates and sells various flavorings to independent, third-party customers. This part of the business is not a primary focus but contributes a small amount to the company's overall revenue.
What management is betting on now
The company is heavily focused on expanding its reach in international markets, which are growing at a fast pace and are becoming a larger part of their overall sales. They are also continuing to innovate with new products and flavors to attract a wider range of consumers, including more women, with offerings like sugar-free options. Additionally, management is investing in marketing and social media to build their brand and attract new customers. They are also working on improving their operational efficiency (the ability to run the business smoothly with minimal waste) through initiatives like upgrading their internal systems.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$571.42M
FY2024 Q4
$370.42M
FY2025 Q1
$478.54M
FY2025 Q2
$434.61M
FY2025 Q3
$701.50M
FY2025 Q4
$351.24M
FY2026 Q1
$584.38M
FY2026 Q2
$460.79M
Revenue
$2.54B
Net income
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Diluted EPS
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Operating cash flow
$509.21M
Free cash flow
$460.79M
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Sources
Revenue
$2.35B
Net income
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Diluted EPS
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Operating cash flow
$604.99M
Free cash flow
$584.38M
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Sources
Revenue
$2.13B
Net income
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Diluted EPS
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Operating cash flow
$379.42M
Free cash flow
$351.24M
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Sources
Revenue
$2.20B
Net income
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Diluted EPS
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Operating cash flow
$745.15M
Free cash flow
$701.50M
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Sources
Revenue
$2.11B
Net income
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Diluted EPS
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Operating cash flow
$466.02M
Free cash flow
$434.61M
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Sources
Revenue
$1.85B
Net income
—
Diluted EPS
—
Operating cash flow
$507.60M
Free cash flow
$478.54M
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Sources
Revenue
$1.81B
Net income
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Diluted EPS
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Operating cash flow
$461.70M
Free cash flow
$370.42M
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Sources
Revenue
$1.88B
Net income
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Diluted EPS
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Operating cash flow
$618.40M
Free cash flow
$571.42M
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Sources
Is it cheap or expensive?
Fair value $42.24 vs current price $43.82
Wall Street consensus is the average analyst price target: $50.26 (19.0% higher than our fair-value estimate).
Our most-likely fair value is $42.24 a share — about 3.6% away from today's price of $43.82, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $3.3B - more cash than debt. Interest coverage 38.3x.
Net debt
$-3.33B
Interest coverage
38.30x
Monster Beverage Corporation's profit covers its interest bill about 38.3 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
MNST
BASELINE
Monster Beverage Corporation
Total debt $92.93M Interest coverage 38.30x This is the baseline the peer rows are being compared against.
Total debt $44.26B Interest coverage 9.02x -76% vs MNST Carries about 4.2x less debt cushion than MNST.
Total debt $53.21B Interest coverage 12.03x -69% vs MNST Carries about 3.2x less debt cushion than MNST.
Total debt $33.53B Interest coverage 4.84x -87% vs MNST Carries about 7.9x less debt cushion than MNST.
Total debt $674.85M Interest coverage 9.57x -75% vs MNST Carries about 4.0x less debt cushion than MNST.
Total debt $58.94M Interest coverage 21.71x -43% vs MNST Carries about 1.8x less debt cushion than MNST.
What you should know
The case for and against MNST
3 Rewards
1 Risk
Rewards
-
Revenue grew 11.1% last year.
-
Returns 25.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 4.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
40.57x
Forward P/E
33.48x
P/B
9.17x
P/S
9.31x
EV/EBITDA
28.13x
PEG ratio
2.27x
Profitability
How much profit each dollar creates
Gross margin
55.5%
Operating margin
29.2%
Net margin
23.1%
ROE
25.7%
ROA
17.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
3.73x
Quick ratio
3.10x
Total debt
$92.93M
Total cash
$3.42B
Growth
How the business has been compounding
Revenue TTM
$9.22B
Revenue 5Y CAGR
10.6%
EPS TTM
1.08
EPS 5Y CAGR
20.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.24B
Free CF TTM
$1.97B
FCF margin
21.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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