This score-card analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Monster Beverage Corp. (MNST)
- Overall Score: 77.9%
- Positive sides:
- In the last quarter, Hedge Funds increased their positions by 4.6 million shares
- In the last 3 years, MNST has increased Revenue by 50.9% and doubled Net Income. Furthermore, the Net Margin improved by 32.6%
- In the last quarter, double-digit growth in Revenue and Net Income. Margins in improvement
- Analysts believe MNST undervalued by 12% at current prices
- They are confident about the growth of MNST in the short and medium-long term. In the next quarter they expect an increase in EPS by 7% and revenue by 7.9%
- Furthermore, they expect an annual growth of EPS by 11.8% for the next 5 years
- Negative sides:
- Underperformance by -16.39% compared to the S&P 500 index in the last 6 months, which is reduced to -4.59% if we consider the performance since the beginning of 2019
Monster Beverage Corporation is an American beverage company that manufactures energy drinks including Monster Energy, Relentless and Burn.
The overall score of MNST is 77.9% .
In the last 6 months, MNST has underperformed the S&P500 index by -16.4% and analysts believe the company is undervalued by 12.0% .
In the last quarter, the company reported revenue of 1134 million, up by 11.6% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 4108.3 million, up by 50.9% in the last 3 years.
MNST reported an operating income of 395 million in the last quarter, an improvement of 16.3% compared to the same quarter 12 months earlier, also reporting an improvement of 4.2% in the operating margin. Considering the sum of the last four quarters (TTM), MNST reports an operating income of 1015,0 Million , a growth of 13.6% compared to three years ago and a reduction of -24.7% in the operating margin.
MNST reported a net income of 299 million in the last quarter, an improvement of 11.7% compared to the same quarter 12 months earlier, also reporting an improvement of 0.1% in the net margin. The TTM net income is 1093,9 million , a growth of 100.1% compared to three years ago and the net margin has improved by 32.6% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 7.0% and a growth in revenue of 7.9% . Furthermore, they expect an annual growth of MNST EPS by 11.8% for the next 5 years.
In the last quarter, MNST reported better EPS than analysts’ expectations and the stock price reacted by increasing by 2.7% .
Finally, in the last quarter the Hedge Funds have increased their positions by 4.6M shares.
Want to know what other types of analysis are available on BullDude.com? Click here to find out !!!
This analysis considers numerical data to understand whether a company is good or not based on business growth and whether analysts are positive about it.
If you are interested in identifying a potential entry point, I am waiting for you here to discover the best “buy the dip” of the day, here for the best companies that follow the “Buy High, Sell Higher” theory and here for the best chart patterns of the day.
Alternatively, if you are interested in statistical analysis before the publication of the earnings report, an analysis of the quarterly report results released or an analysis of the top 20 companies that release the earnings report during the week, I am waiting for you here.
Do you want to stay updated on all the analysis published?
Sources & additional info
*The comparison with the S&P 500 index (black line) is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
If you liked this analysis, share it on Twitter or Facebook with the 2 buttons at the top or bottom of the page!!!
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment. Stocks trading involves substantial risk of loss and is not suitable for every investor. Trade responsibly.