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1. Company Snapshot

1.a. Company Description

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally.The company operates through three segments: Monster Energy Drinks, Strategic Brands, and Other.It offers carbonated energy drinks, non-carbonated, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages.


The company sells its products to bottlers, full-service beverage distributors, as well as sells directly to retail grocery and speciality chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations.It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster HydroSport Super Fuel, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, as well as NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, Fury, and True North brands.The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012.


Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.

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1.b. Last Insights on MNST

Monster Beverage Corporation's recent performance was driven by strong Q3 results, fueled by innovation, pricing gains, and global expansion momentum. The company's Q3 earnings beat analyst estimates, with record quarterly net sales rising 16.8% to $2.20 billion and operating income increasing 40.7% to $675.4 million. Robust international growth and improved margins were key drivers. Additionally, the company's strong balance sheet, with zero long-term debt and $2.5 billion in cash and short-term investments, provides downside protection. New product launches and global demand also powered momentum.

1.c. Company Highlights

2. Monster Beverage: Strong Q3 2025 Results Driven by Global Growth

Monster Beverage Corporation reported a robust third quarter in 2025, with record quarterly net sales of $2.2 billion, representing a 16.8% increase from $1.88 billion in Q3 2024. Net sales on a foreign currency adjusted basis rose 15.1%. The Monster Energy Drinks segment drove this growth, increasing 17.7% to $2.03 billion. Gross profit as a percentage of net sales improved to 55.7% from 53.2% in Q3 2024. Operating income surged 40.7% to $675.4 million, while adjusted operating income rose 35.6% to $705.8 million. Net income per diluted share increased 41.1% to $0.53, and adjusted net income per diluted share was $0.56, beating analyst estimates of $0.4786.

Publication Date: Nov -08

📋 Highlights
  • Net Sales Growth:: Q3 2025 net sales reached $2.2 billion, a 16.8% increase from Q3 2024 ($1.88 billion), with 15.1% growth on a currency-adjusted basis.
  • Gross Margin Expansion:: Gross profit margin rose to 55.7% (from 53.2% in Q3 2024), driven by improved cost management and sales mix.
  • Operating Income Surge:: Operating income climbed 40.7% to $675.4 million, with adjusted operating income up 35.6% to $705.8 million.
  • International Sales Momentum:: International revenue grew 23.3% to $937.1 million, accounting for 43% of total sales, with EMEA and APAC up 30.3% and 28.7% respectively.
  • Product Launch Strategy:: Plans for 2026 include new variants like Monster Energy Strawberry Shot and Juice Monster Voodoo Grape, alongside existing brand expansion in key markets.

Segment Performance

The Strategic Brands segment grew 15.9% to $130.5 million, contributing to the overall revenue growth. International sales were a significant driver, increasing 23.3% to $937.1 million, or 43% of total net sales. EMEA and APAC regions showed strong growth, with net sales rising 30.3% and 28.7% in dollars, respectively. The company's gross margin was 46.8% in the 2025 third quarter, up from 42.2% in the 2024 third quarter, indicating improved operational efficiency.

Outlook and Valuation

Monster Beverage is planning several new product launches in 2026, including Monster Energy Strawberry Shot and Storm Energy. The company expects a modest impact from tariffs in the fourth quarter and first quarter of 2026. With a price increase implemented on November 1, the company is confident in its growth strategy. Analysts estimate next year's revenue growth at 8.7%. The stock's current P/E Ratio is 39.4, and EV/EBITDA is 27.88, indicating that the market has priced in significant growth expectations. Hilton Schlosberg's statement on the company's confidence in its brands and growth strategy reinforces this outlook.

Valuation Metrics

Considering the company's valuation metrics, the P/S Ratio is 8.54, and the ROE is 25.2%, indicating a strong return on equity. The company's ROIC is 21.13%, demonstrating efficient capital allocation. With $500 million remaining in its repurchase program, the company has the flexibility to return capital to shareholders. The stock's Dividend Yield is 0.0%, as the company focuses on growth over dividend payouts.

3. NewsRoom

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Monster Beverage Corporation (MNST) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Are You Looking for a Top Momentum Pick? Why Monster Beverage (MNST) is a Great Choice

Dec -03

Source: zacks.com

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2 Energy Drink Stocks to Buy for a Stable Portfolio in 2026

Dec -03

Source: zacks.com

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Monster Beverage Corporation (MNST) Discusses Global Energy Drink Market Trends and Growth Strategies Transcript

Dec -03

Source: seekingalpha.com

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Buy These 3 Consumer Staple Stocks to Navigate Market Volatility

Dec -02

Source: zacks.com

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Is Monster Beverage's International Push the Next Big Driver of Sales?

Dec -01

Source: zacks.com

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Is Monster Beverage (MNST) Stock Outpacing Its Consumer Staples Peers This Year?

Dec -01

Source: zacks.com

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Take the Zacks Approach to Beat the Markets: MBX Biosciences, Garrett Motion & Monster Beverage in Focus

Dec -01

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.60%)

6. Segments

Monster Energy® Drinks

Expected Growth: 8.1%

The energy drink market is expected to continue growing, driven by increasing consumer demand for energy and mental performance products. Monster Energy® Drinks is well-positioned to capitalize on this trend, with a strong brand and distribution network. The expected growth rate is slightly higher than the global average, reflecting the segment's strong market position and potential for continued expansion.

Strategic Brands

Expected Growth: 7.2%

The Strategic Brands segment is expected to grow at a rate slightly below the global average, as the company continues to invest in and develop these brands. While there is potential for significant growth, the segment is also subject to more variability, as the company navigates different markets and product categories.

Other

Expected Growth: 5.5%

The Other segment is expected to grow at a slower rate than the company's core beverage businesses, as it is subject to more variability and is not a major focus of the company's growth plans. However, the segment still provides important revenue streams, and the company is likely to continue to invest in and optimize these businesses.

Alcohol Brands

Expected Growth: 6.8%

The Alcohol Brands segment is expected to grow at a rate below the global average, as the company navigates a complex and highly regulated market. However, the company's alcohol brands are well-established, and the segment is still expected to contribute to revenue growth, driven by continued investment and optimization.

7. Detailed Products

Monster Energy

A line of energy drinks that provide a boost of energy and mental performance

Java Monster

A line of coffee-flavored energy drinks that combine the energy of Monster with the taste of coffee

Muscle Monster

A line of energy drinks specifically designed for athletes and fitness enthusiasts

Rehab Monster

A line of energy drinks that provide a boost of energy and help with recovery after a workout

Extra Strength Monster

A line of energy drinks that provide an extra boost of energy and mental performance

Khaos

A line of energy drinks that provide a boost of energy and mental performance with a unique flavor profile

NOS Energy Drink

A line of energy drinks that provide a boost of energy and mental performance with a focus on racing and motorsports

Full Throttle Energy

A line of energy drinks that provide a boost of energy and mental performance with a focus on action sports

8. Monster Beverage Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Monster Beverage Corporation has a low threat of substitutes due to its strong brand recognition and customer loyalty. The company's products are highly differentiated, making it difficult for substitutes to enter the market.

Bargaining Power Of Customers

Monster Beverage Corporation has a medium bargaining power of customers due to the presence of large retailers and distributors. However, the company's strong brand recognition and customer loyalty mitigate this power to some extent.

Bargaining Power Of Suppliers

Monster Beverage Corporation has a low bargaining power of suppliers due to its large scale of operations and diversified supply chain. The company has multiple suppliers for its ingredients and packaging materials, reducing its dependence on any one supplier.

Threat Of New Entrants

Monster Beverage Corporation has a low threat of new entrants due to the high barriers to entry in the energy drink market. The company's strong brand recognition, large distribution network, and high marketing expenses make it difficult for new entrants to compete.

Intensity Of Rivalry

Monster Beverage Corporation operates in a highly competitive energy drink market, with intense rivalry among existing players. The company faces strong competition from Red Bull, Rockstar, and other energy drink brands, which drives down prices and increases marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.80%
Debt Cost 7.61%
Equity Weight 99.20%
Equity Cost 7.61%
WACC 7.61%
Leverage 0.80%

11. Quality Control: Monster Beverage Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Monster Beverage

A-Score: 5.7/10

Value: 1.2

Growth: 7.2

Quality: 7.9

Yield: 0.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
National Beverage

A-Score: 5.5/10

Value: 4.0

Growth: 5.6

Quality: 7.8

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

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Stock-Card
Coca-Cola

A-Score: 5.3/10

Value: 1.8

Growth: 3.4

Quality: 7.1

Yield: 6.0

Momentum: 3.5

Volatility: 10.0

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Stock-Card
PepsiCo

A-Score: 5.1/10

Value: 2.6

Growth: 4.7

Quality: 5.6

Yield: 7.0

Momentum: 1.5

Volatility: 9.3

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Stock-Card
Keurig Dr Pepper

A-Score: 4.4/10

Value: 3.8

Growth: 3.0

Quality: 5.8

Yield: 5.0

Momentum: 0.5

Volatility: 8.3

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Stock-Card
Primo Water

A-Score: 4.2/10

Value: 2.8

Growth: 5.2

Quality: 4.8

Yield: 5.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.74$

Current Price

73.74$

Potential

-0.00%

Expected Cash-Flows