Fundamental Analysis
MONSTER ENERGY
Most companies spend their money on ad agencies, TV commercials, radio spots, and billboards to tell you how good their products are. At Monster we choose none of the above. Instead, we support the scene, our bands, our athletes and our fans. We back athletes so they can make a career out of their passion. We promote concert tours, so our favorite bands can visit your home town. We celebrate with our fans and riders by throwing parties and making the coolest events we can think of a reality.
https://www.monsterenergy.com/us/en/about-us
Reasons to buy – Monster Beverage
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see Monster Beverage makes a margin of 33% on Operating Level and about 25% on Net level. This means that out of $1 that it makes $0.25 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 14% in the revenue and the net profit figures grew by 21%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see Monster Beverage makes a Return on Assets of 18% and Return of Equity of 22% which is pretty good.
Monster brand is vibrant and available at every high energy touch point like go-karting places, pubs etc. This is one of the Red Bull kind of stocks where the product is in good demand and the company knows how to run its business profitably.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by Monster Beverage to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
