One-glance verdict
Within fair range
$39.99 our estimate vs market $47.04
Wall Street consensus: $49.85 (24.7% higher than our fair-value estimate)
18% above our estimate
Fundamentals snapshot
Monster Beverage Corporation
MNST · NMS · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$47.04
52-week range
$32.94 - $50.17
Market cap
$92.15B
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 12.5% above its 5-year average P/E.
What this company does
Monster Beverage Corporation
Monster Beverage Corporation sells a wide variety of energy drinks and other beverages under well-known brands like Monster Energy and Reign, with most of its money coming from these energy drinks. This matters because the company focuses on a popular and growing market for drinks that give people a boost.
How the company got here
Monster Beverage Corporation has a long history, starting in 1935 as Hansen's, a family business focused on selling juice products in Southern California. For decades, the company operated under the Hansen's name, offering various juices and sodas. A significant turning point came in 1998 when the company moved to Corona, California, and in 2002, it launched its flagship "Monster Energy" drink. This marked a strategic shift towards the energy drink market, which proved highly successful. In 2012, the company officially changed its name from Hansen Natural Corporation to Monster Beverage Corporation to reflect its primary focus. A key strategic alliance with The Coca-Cola Company in 2015 further expanded Monster's reach by providing access to a vast distribution network.
What it actually does
Monster Beverage Corporation is a leading company in the development, marketing, and distribution of energy drinks and other beverages. While most recognized for its energy drink brands, the company also has a presence in the alcohol beverage market. Monster's strategy focuses on building strong consumer brands through product innovation and lifestyle marketing, rather than owning bottling facilities, which makes its business model more asset-light. The company sells its products through various channels, including grocery stores, convenience stores, mass merchandisers, and e-commerce retailers.
Monster Energy Drinks
This is the largest and most well-known part of Monster Beverage's business, making up the bulk of its revenue. It includes a wide array of energy drinks under the Monster Energy brand, such as the original Monster Energy, Monster Ultra (zero sugar options), Java Monster (coffee-energy drinks), and Juice Monster (energy drinks with real fruit juice). These products are designed to provide energy and are popular among consumers looking for a boost, often associated with extreme sports and active lifestyles.
Strategic Brands
This segment encompasses a variety of other beverage brands that Monster Beverage owns or distributes, which are not part of the core Monster Energy line. This includes brands like Reign (performance energy drinks), NOS, Full Throttle, and Burn. These brands often target specific niches within the broader energy and performance beverage market, offering different formulations and benefits to a diverse consumer base.
Alcohol Brands
Monster Beverage has expanded into the alcoholic beverage sector, primarily through acquisitions. This segment includes craft beers, flavored malt beverages, and hard seltzers. Brands in this category, such as Jai Alai IPA, Wild Basin Hard Seltzers, and The Beast Hard Tea, represent a smaller but growing portion of the company's overall business, diversifying its product portfolio beyond non-alcoholic energy drinks.
Other
This segment likely includes any remaining smaller brands or business activities that do not fit neatly into the other categories. It might encompass legacy products or newer ventures that are still in their early stages of development or market penetration. While not a primary revenue driver, this segment allows the company to experiment with new product ideas or maintain a presence in niche markets.
What management is betting on now
Monster Beverage's management is focused on continued growth through product innovation, particularly in zero-sugar and functional beverage categories, to meet evolving consumer preferences. They are also prioritizing international expansion, leveraging partnerships like the one with Coca-Cola to increase global distribution and market penetration. Furthermore, the company is investing in marketing and sponsorships that align with active lifestyles and youth culture to maintain brand relevance and attract new consumers.
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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Is it cheap or expensive?
Fair value $39.99 vs current price $47.04
Wall Street consensus is the average analyst price target: $49.85 (24.7% higher than our fair-value estimate).
Our most-likely fair value is $39.99 a share — about 15.0% away from today's price of $47.04, 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 $51.88B Interest coverage 12.03x -69% vs MNST Carries about 3.2x less debt cushion than MNST.
Total debt $44.26B Interest coverage 9.02x -76% vs MNST Carries about 4.2x 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.
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 12.5% 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)
43.56x
Forward P/E
35.93x
P/B
9.84x
P/S
10.00x
EV/EBITDA
30.28x
PEG ratio
2.35x
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
0.0%
Payout ratio
0.0%
Last ex-div date
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