# Monster Beverage (MNST.US)

Canonical: https://gigainvestors.com/s/MNST

Analysis as of: 2026-10-16T07:30:18.971Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $45.34 per share; close as of 2026-10-15.

Estimated value: low $15.98 per share, central $22.70 per share, high $26.46 per share. Buy at or below the central value $22.70 per share. Valuation as of 2026-10-16T07:30:18.971Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.36×

- FY2018: 0.34×

- FY2019: 0.33×

- FY2020: 0.36×

- FY2021: 0.32×

- FY2022: 0.25×

- FY2023: 0.27×

- FY2024: 0.26×

- FY2025: 0.29×

- LTM to Jun 2026: 0.29×

### moat: pass

- ROIC, median of available years: 55.5%

- ROIC, second-lowest year: 42.2%

- Typical minus recent gross margin: 3.6 pp

- Typical gross margin (annual median): 57.7%

- Recent gross margin (lower of latest and 3-year median): 54.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 31.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 51.2%

- FY2017: 59.8%

- FY2018: 73.9%

- FY2019: 71.4%

- FY2020: 79.3%

- FY2021: 62.8%

- FY2022: 40.3%

- FY2023: 42.5%

- FY2024: 42.2%

- FY2025: 44.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $7.3B

- Net income, five-year total: $7.6B

- Return on incremental invested capital: 61.8%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 6.6 pp

- Working capital / revenue, final three-year average: 21.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.92×

- FY2023: 0.94×

- FY2024: 0.90×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 59.8% vs 42.5%

- Per-share earnings: 0.59 to 0.77 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.2%

- Ordinary dilution, 5-year annual growth: 13.0%

- Market cap gain: $97B

- Cumulative retained earnings: $7.2B

- Diluted shares, 10-year annual growth: -2.2%

- Diluted shares, 5-year annual growth: 13.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.3%

- Per-share value change: $0.18

- Per-share value, starting three-year median: $0.59

- Per-share value, ending three-year median: $0.77

- Buybacks concentrated in cheaper years (correlation): 0.72

- Average buyback yield: 1.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.1B

- Cumulative net income, 10 years: $13B

- ROIC, first three-year median: 59.8%

- ROIC, last three-year median: 42.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.59

- FY2017: $0.71

- FY2018: $0.88

- FY2019: $1.01

- FY2020: $1.32

- FY2021: $0.64

- FY2022: $0.56

- FY2023: $0.77

- FY2024: $0.74

- FY2025: $0.97

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 1.20×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.10×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.33×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.3%

- FY2017: -3.5%

- FY2018: -3.7%

- FY2019: -0.1%

- FY2020: 0.7%

- FY2021: 2.8%

- FY2022: 3.7%

- FY2023: -0.9%

- FY2024: -5.4%

- FY2025: -1.9%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 56% since Jan 2023 · "Gross margin expansion was offset by elevated aluminum can costs and increased promotional allowances." (finance.yahoo.com, Mar 2026) · sales +11.1%

Story as of 2026-10-16T09:59:11.144Z; price observation 2026-10-15.

Price needs cash profits to grow 16.6% a year for ten years

- 2025-05-09: Monster Beverage Stock Trades at All-Time High on Strong April Sales ([finance.yahoo.com](https://finance.yahoo.com/news/monster-beverage-stock-trades-time-153050920.html))

- 2025-08-08: Monster Beverage outlines selective price adjustments and innovation pipeline after record $2.11B sales ([seekingalpha.com](https://seekingalpha.com/news/4482163-monster-beverage-outlines-selective-price-adjustments-and-innovation-pipeline-after-record?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-07: MNST Q3 Deep Dive: International Expansion and Innovation Drive Margin Gains ([finance.yahoo.com](https://finance.yahoo.com/news/mnst-q3-deep-dive-international-142610259.html))

- 2026-02-26: Monster Beverage Posts Higher Fourth-Quarter Profit as Energy Drink Sales Rise ([finance.yahoo.com](https://finance.yahoo.com/m/6d372629-c0a3-37ac-acac-fa4bf414ac0d/monster-beverage-posts-higher.html))

- 2026-05-08: Monster Beverage's Q1 Earnings Beat, Energy Drinks Unit Sales Up 27.6% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/monster-beverages-q1-earnings-beat-192900404.html))

- 2026-06-23: Monster Beverage (MNST) Gets A Lift As Red Bull Raises U.S. Prices ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/monster-beverage-mnst-gets-lift-201207119.html))

### Sales · FY2025–2026

sales +11.1%; source https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm; observed 2026-02-27.

- FY2017: $3.4B 

- FY2018: $3.8B 

- FY2019: $4.2B 

- FY2020: $4.6B 

- FY2021: $5.5B 

- FY2022: $6.3B 

- FY2023: $7.1B 

- FY2024: $7.5B 

- FY2025: $8.3B 

- FY2026: $9.2B 

### Gross margin · FY2025

gross margin 55.8%; source https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm; observed 2026-02-27.

- FY2016: 63.7% 

- FY2017: 63.5% 

- FY2018: 60.3% 

- FY2019: 60.0% 

- FY2020: 59.2% 

- FY2021: 56.1% 

- FY2022: 50.3% 

- FY2023: 53.1% 

- FY2024: 54.0% 

- FY2025: 55.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in beverages non-alcoholic; annual sales are USD 8.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm (filed 2026-02-27); FY2025: revenue 8294343000; grossProfit 4632195000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MNST.US: 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 four segments: Monster Energy Drinks, Strategic Brands, Alcohol Brands, and Other. It offers carbonated non-carbonated energy drinks, 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. In addition, the company provides its products under the Monster Energy, Monster Energy Ultra, Rehab Monster, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Monster Tour Water, Reign Total Body Fuel, Reign Storm, Bang Energy, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play, Relentless, BPM, BU, Samurai, Live+, Predator, and Fury brands. Further, it offers craft beers, flavored malt beverages,and hard seltzers under the Jai Alai IPA, Florida Man IPA, Dale's Pale Ale, Wild Basin Hard Seltzers, Dallas Blonde, Deep Ellum IPA, Perrin Brewing Company Black Ale, Hop Rising Double IPA, Wasatch Apricot Hefeweizen, The Beast, and Beast Tea, Blind Lemon, and Blinder Lemon brands. The company engages in the concentrates and/or beverage bases to authorized bottling, and canning operations. It sells its products to full-service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, food service customers, value stores, e-commerce retailers, and the military. 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.

### Why customers stay

Margins ranged from 53.1% to 55.8% during 2023–25; it earns 55.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 53.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 54%.

- Source: https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 55.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.5117516350135743],[2017,0.5984888195629205],[2018,0.7394927235493027],[2019,0.7141106620378436],[2020,0.792823389943406],[2021,0.6283791376522422],[2022,0.4026357689519719],[2023,0.42505720106970846],[2024,0.4223479351484279],[2025,0.4466742722948189]]; median 0.5551202272882474. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

"The Pricing Actions positively impacted gross profit margins in 2025 as compared to 2024." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm (filed 2026-02-27); The Pricing Actions positively impacted gross profit margins in 2025 as compared to 2024.

### Where the cash goes

Spends 0.9% of cash earnings on expansion; paid dividends in 4 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 13201726.589819014; upkeep 92135273.41018099; owner earnings 661394726.589819. Growth capex / owner earnings = 0.019960435212248686.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 15136621.024732128; upkeep 77991378.97526787; owner earnings 791573621.0247321. Growth capex / owner earnings = 0.019122189803567488.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 17946000; upkeep 56979000; owner earnings 993004000. Growth capex / owner earnings = 0.018072434753535736.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 23294184.08309737; upkeep 87103815.91690263; owner earnings 1085545184.0830975. Growth capex / owner earnings = 0.021458511745665137.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 6299000; upkeep 60973000; owner earnings 1409594000. Growth capex / owner earnings = 0.0044686626078147326.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 7298000; upkeep 50155000; owner earnings 1377475000. Growth capex / owner earnings = 0.005298099784025119.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 52628645.10083243; upkeep 159524354.89916757; owner earnings 1093340645.1008325. Growth capex / owner earnings = 0.04813563397341621.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 66782270.0732542; upkeep 167941729.9267458; owner earnings 1531944270.073254. Growth capex / owner earnings = 0.043593145898225674.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 33774234.8313252; upkeep 230299765.1686748; owner earnings 1359182234.8313253. Growth capex / owner earnings = 0.0248489378140795.

- Source: https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm (filed 2026-02-27); FY2025: growth capex 17834000; upkeep 114441000; owner earnings 1905432000. Growth capex / owner earnings = 0.009359557307739137.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,628506000],[2020,526068000],[2021,2928000],[2022,75000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm (filed 2026-02-27); FY2025: cash repurchases 103646000 USD.

### Are managers owners

Insiders own 28.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MNST.US SharesStats.PercentInsiders = 28.299999999999997 percentage points; cache date 2026-10-16.

### What could break it

"Operational and Industry Risks" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm (filed 2026-02-27); Operational and Industry Risks

### What the price says

The price assumes cash profits grow 16.6% yearly over ten years; actual growth was 16%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.3080143192550133. Price 45.34; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.22025876121691787 → FY2025 0.967763758683774. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $144.34 per share

- 2016-11: $44.75 per share

- 2016-12: $44.34 per share

- 2017-01: $42.60 per share

- 2017-02: $41.44 per share

- 2017-03: $46.17 per share

- 2017-04: $45.38 per share

- 2017-05: $50.56 per share

- 2017-06: $49.68 per share

- 2017-07: $52.75 per share

- 2017-08: $55.82 per share

- 2017-09: $55.25 per share

- 2017-10: $57.93 per share

- 2017-11: $62.67 per share

- 2017-12: $63.29 per share

- 2018-01: $68.23 per share

- 2018-02: $63.37 per share

- 2018-03: $57.21 per share

- 2018-04: $55.00 per share

- 2018-05: $51.16 per share

- 2018-06: $57.30 per share

- 2018-07: $60.02 per share

- 2018-08: $60.89 per share

- 2018-09: $58.28 per share

- 2018-10: $52.85 per share

- 2018-11: $59.68 per share

- 2018-12: $49.22 per share

- 2019-01: $57.24 per share

- 2019-02: $63.83 per share

- 2019-03: $54.58 per share

- 2019-04: $59.60 per share

- 2019-05: $61.86 per share

- 2019-06: $63.83 per share

- 2019-07: $64.47 per share

- 2019-08: $58.67 per share

- 2019-09: $58.06 per share

- 2019-10: $56.13 per share

- 2019-11: $59.82 per share

- 2019-12: $63.55 per share

- 2020-01: $66.60 per share

- 2020-02: $62.41 per share

- 2020-03: $56.26 per share

- 2020-04: $61.81 per share

- 2020-05: $71.91 per share

- 2020-06: $69.32 per share

- 2020-07: $78.48 per share

- 2020-08: $83.86 per share

- 2020-09: $80.20 per share

- 2020-10: $76.57 per share

- 2020-11: $84.78 per share

- 2020-12: $92.48 per share

- 2021-01: $86.83 per share

- 2021-02: $87.74 per share

- 2021-03: $91.09 per share

- 2021-04: $97.05 per share

- 2021-05: $94.27 per share

- 2021-06: $91.35 per share

- 2021-07: $94.32 per share

- 2021-08: $97.57 per share

- 2021-09: $88.83 per share

- 2021-10: $85.00 per share

- 2021-11: $83.78 per share

- 2021-12: $96.04 per share

- 2022-01: $86.72 per share

- 2022-02: $84.40 per share

- 2022-03: $79.90 per share

- 2022-04: $85.68 per share

- 2022-05: $89.12 per share

- 2022-06: $92.70 per share

- 2022-07: $99.62 per share

- 2022-08: $88.83 per share

- 2022-09: $86.96 per share

- 2022-10: $93.72 per share

- 2022-11: $102.86 per share

- 2022-12: $101.53 per share

- 2023-01: $104.08 per share

- 2023-02: $101.76 per share

- 2023-03: $54.01 per share

- 2023-04: $56.00 per share

- 2023-05: $58.62 per share

- 2023-06: $57.44 per share

- 2023-07: $57.49 per share

- 2023-08: $57.41 per share

- 2023-09: $52.95 per share

- 2023-10: $51.10 per share

- 2023-11: $55.15 per share

- 2023-12: $57.61 per share

- 2024-01: $55.02 per share

- 2024-02: $59.10 per share

- 2024-03: $59.28 per share

- 2024-04: $53.45 per share

- 2024-05: $51.92 per share

- 2024-06: $49.95 per share

- 2024-07: $51.45 per share

- 2024-08: $47.13 per share

- 2024-09: $52.17 per share

- 2024-10: $52.68 per share

- 2024-11: $55.13 per share

- 2024-12: $52.56 per share

- 2025-01: $48.71 per share

- 2025-02: $54.65 per share

- 2025-03: $58.52 per share

- 2025-04: $60.12 per share

- 2025-05: $63.95 per share

- 2025-06: $62.64 per share

- 2025-07: $58.75 per share

- 2025-08: $62.41 per share

- 2025-09: $67.31 per share

- 2025-10: $66.83 per share

- 2025-11: $74.99 per share

- 2025-12: $76.67 per share

- 2026-01: $80.76 per share

- 2026-02: $85.30 per share

- 2026-03: $72.46 per share

- 2026-04: $77.07 per share

- 2026-05: $88.08 per share

- 2026-06: $96.12 per share

- 2026-07: $96.38 per share

- 2026-08: $45.92 per share

- 2026-09: $41.62 per share

- 2026-10: $43.31 per share

## Annual estimated value (USD per share)

- FY2016: low $7.68 per share, central $11.00 per share, high $12.85 per share

- FY2017: low $9.45 per share, central $13.33 per share, high $15.50 per share

- FY2018: low $11.41 per share, central $16.28 per share, high $19.00 per share

- FY2019: low $14.25 per share, central $20.26 per share, high $23.62 per share

- FY2020: low $17.97 per share, central $25.38 per share, high $29.50 per share

- FY2021: low $11.09 per share, central $15.54 per share, high $18.02 per share

- FY2022: low $11.59 per share, central $16.04 per share, high $18.64 per share

- FY2023: low $12.87 per share, central $17.76 per share, high $20.61 per share

- FY2024: low $11.47 per share, central $16.09 per share, high $18.78 per share

- FY2025: low $14.44 per share, central $20.47 per share, high $23.82 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:03.019Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/865752/000110465926020831/mnst-20251231x10k.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.