In this analysis we know Monster Beverage (MNST), owner of the famous Monster Energy brand and a fast growing company. Revenues of over $ 4.5 billion with a net profit of approximately $ 1.5 billion. Very high net margin (30%) and continuously improving. The most surprising figure remains the rise in the share price. Since the tech bubble that burst in 2000, Monster Beverage has seen its share price rise by more than 100,000 %.

Key Data

The key data you need to know about the company covered by this analysis are represented by a “BullDude’s Card”, which is a single image that contains key data that answers the following questions:

Is the company’s business growing by increasing the main key business data?
Are the main business margins improving making the company more efficient?
Will Revenue and Net Income grow in the coming months?
Has the company’s value been growing more than the market index in recent months?

*click here for the description of the metrics in Italian.

IN-DEPTH ANALYSIS

Below you will find a BullDude’s Card, which is a single image that contains all the most important key data you need to know about the company and is divided into 2 parts: Performance and Financials.

PART 1 – Performance

The objective of this first part is to understand whether the company covered here has grown in the last 12 months and since the beginning of the year (YTD, Year-To-Date). In addition, you will find a chart that shows the performance of a $ 10,000 simulated investment made 12 months ago in the company against the market index chosen as the benchmark.

performance metrics

Market Cap: Market capitalization of the company in millions of dollars
YTD Perf. %: Performance of the company’s stock price YTD (Year To Date)
$ 10.000 Invested 1 Year Ago: Simulation of a $ 10,000 investment made 1 year ago in the company in comparison with the market index chosen as the benchmark.

PART 2 – Financials

The objective of this second part is to focus attention on the key business data of the company in recent years and on expectations of future growth. In particular, the focus is on: the ability to increase the size of the business (by increasing Revenue); ability to produce continuously improving operating income (increasing EBITDA); ability to produce a net profit at the end of the year after all costs incurred (positive and growing Net Income).

Furthermore, the focus is on the ability of company to improve business efficiency, increasing the main business margins, especially what concerns the operational part that is not affected by financial and fiscal costs (positive and growing EBITDA margin).

financial metrics

Revenue, EBITDA and Net Income: Revenue are the sum of the products and services sold, EBITDA is a widely used metric because it is an approximation of cash flow and focuses only on the operating performance without considering the financial and tax costs which are instead considered in the Net Income, which measures the final profit of the company after subtracting all types of costs from revenue. The metrics are calculated TTM (Trailing 12-Months), therefore as the sum of the last 4 quarters in order to have the data updated to the last quarter released by the company.
This Year Est. Growth: Growth / decrease rate estimated by analysts on Revenue and Net Income. The estimate is based on a comparison between the year-end data estimated by analysts and the 12-month trailing data reported by the company up to now. For example, if a company had a revenue of 1 million in the last 12 months and analysts expect the company to end the year with revenue of 1.5 million, then the estimated data reported here will be a growth of 50% (from 1 to 1, 5 million). Estimates are shown as ranges (from, to) because they are not certain data and are subject to variation.
EBITDA Margin and Net Margin: Business margins are important to understand if the company is able to profit from its revenue (high business margin), or the costs are too high and little profit remains (low business margin). There is a case in which the costs exceed the revenue, in which case the company reports a loss and the business margin is negative. The EBITDA Margin refers only to the operating activity, therefore it is more important than the Net Margin because it is not influenced by other types of costs such as financial and fiscal ones. If margins improve, it means that the company is operating more efficiently, because with the same revenue it is able to make more operating profits (EBITDA) or net profits (Net Income).
3 Yrs Growth: For each of the metrics just mentioned there is the growth (or decrease) rate of the last 3 years, useful to understand if the company is growing and at what rate.

Monster Beverage Corp (MNST)

Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries market and distribute energy drinks, including Monster Energy(R) energy drinks and Monster Energy Extra Strength Nitrous Technology(R) energy drinks.

*Data in Millions of USD

Sources & additional info

*all data is current as of the day this article was written
*company description by barchart.com
*growth estimates revised from the data on ziggma.com

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