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Monster Beverage Corp - Stock Quote MNST

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Morningstar's Monster Beverage Corp Stock Analysis

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5-Star Price

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Economic Moat

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Capital Allocation

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Solid First-Quarter Results at Monster Beverage Despite Supply Difficulties; Shares Trade Fairly

Zain Akbari, CFA Equity Analyst

Analyst Note

| Zain Akbari, CFA |

Our $82 per share valuation of narrow-moat   Beverage should not change significantly in light of its first-quarter earnings, which suggest it can deliver solid results despite ongoing cost pressures from difficult supply conditions. We expect mid-single-digit top-line growth rates and mid-30s adjusted operating margins over the long term. The shares trade near our valuation, and so we suggest prospective investors await a more favorable entry point.

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Monster Beverage Corp's Company Profile

Business Description

Monster Beverage is a leader in the energy drink subsegment of the beverage industry. The Monster trademark anchors the portfolio, and notable offerings include Monster Energy and Monster Ultra. The firm has also started to incubate new trademarks for emerging enclaves of the energy space, like Reign in performance energy. It is primarily a brand owner, outsourcing most of its manufacturing processes to third-party copackers. It primarily uses the Coca-Cola bottling system for distribution after a strategic agreement in which Coke became Monster’s largest shareholder (roughly 19%) and that also included the exchange of certain businesses between the two firms. Most of Monster’s revenue is generated in the United States, though international geographies are increasing in the mix.

Contact
1 Monster Way
Corona, CA, 92879
T +1 951 739-6200
Sector Consumer Defensive
Industry Beverages - Non-Alcoholic
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Aggressive Growth
Employees 4,092

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