Monster Beverage Corporation [NASDAQ:MNST]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Monster Beverage Corporation [MNST], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give MNST an Outperform rating. Its stock price has been found in the range of 47.61 to 66.38. This is compared to its latest closing price of $59.67.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Monster Beverage Corporation [MNST] is sitting at 2.16. This is compared to 1 month ago, when its average rating was 2.11.
For the quarter ending in Dec-18 Monster Beverage Corporation [MNST] generated $0.92 billion in sales. That’s 2.56% higher than the average estimate of $0.9 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 14 May (In 60 Days).
Fundamental Analysis of Monster Beverage Corporation [MNST]
Now let’s turn to look at profitability: with a current Operating Margin for Monster Beverage Corporation [MNST] sitting at +34.41 and its Gross Margin at +60.29, this company’s Net Margin is now 26.10%. These measurements indicate that Monster Beverage Corporation [MNST] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 34.83, and its Return on Invested Capital has reached 27.30%. Its Return on Equity is 26.46, and its Return on Assets is 20.76. These metrics all suggest that Monster Beverage Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Monster Beverage Corporation [MNST] has generated a Total Debt to Total Equity ratio of 0.32. Similarly, its Total Debt to Total Capital is 0.32, while its Total Debt to Total Assets stands at 0.25.
What about valuation? This company’s Enterprise Value to EBITDA is 23.39 and its Total Debt to EBITDA Value is 0.01. The Enterprise Value to Sales for this firm is now 8.40, and its Total Debt to Enterprise Value stands at 0.00. Monster Beverage Corporation [MNST] has a Price to Book Ratio of 7.41, a Price to Cash Flow Ratio of 23.90 and P/E Ratio of 34.23. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Monster Beverage Corporation [MNST] earns $1,211,707 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.15 and its Total Asset Turnover is 0.80. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.54 and its Current Ratio is 3.00. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Monster Beverage Corporation [MNST] has 551.93M shares outstanding, amounting to a total market cap of $32.93B. Its stock price has been found in the range of 47.61 to 66.38. At its current price, it has moved by -8.71% from its 52-week high, and it has moved 27.28% from its 52-week low.
This stock’s Beta value is currently 1.55, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.52. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Monster Beverage Corporation [MNST] a Reliable Buy?
Shares of Monster Beverage Corporation [MNST], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.