Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 5 Jun, 25 | MNST | Buy | USD 63.1 | USD 66.42 | USD 70.42 | 92 days | Closed |
0.89%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
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, 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. The company sells its products to full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service 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, Punch Monster, Juice Monster, Muscle Monster, Espresso Monster, Monster Tour Water, Fury, Monster MAXX, Caffe Monster, Monster Hydro, Monster HydroSport Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, Reign Storm, Bang Energy, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, and Fury 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.
Enhanced Shareholders’ Wealth: ROE of 7.1% in Q1 FY25 vs 5.3% in Q1 FY24
Higher Profitability: Net Margin of 23.9% in Q1 FY25 vs Industry Median of 8.9%
Top Line Underperformance: Net Sales of USD 1,854.6 mn in Q1 FY25 vs USD 1,899.1 mn in Q1 FY24
Ineffective Working Capital Needs: Cash Cycle of 92.0 Days in Q1 FY25 vs Industry Median of 18.4 Days
Underperformance of the Alcohol Brands Segment, Reliance on Third-Party Bottlers, Foreign Currency Volatility, Economic and Consumer Demand Uncertainty, etc
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 63.1 | 57.63 | 66.42 | 70.42 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Monster Beverage Corporation reported a resilient first-quarter 2025 performance, underscored by strong profitability and operational efficiency. The company achieved a gross profit margin of 56.5%, up from 54.1% in the prior year, driven by effective pricing actions and supply chain optimization. Net income per diluted share rose by 10.2% (excluding the Alcohol Brands segment), reflecting solid earnings growth despite macroeconomic headwinds. Additionally, the company demonstrated disciplined cost management with a reduction in distribution expenses and maintained robust liquidity by fully repaying its term loan facility. International sales remained a bright spot, growing 6.2% on a currency-adjusted basis and now contributing 40% to total net sales.
The core energy drinks segment continues to perform well, supported by strong consumer demand and innovation-led growth. New product launches, such as Monster Energy® Ultra Blue Hawaiian, gained rapid traction, while the company maintained its market leadership in multiple countries. Management remains optimistic about long-term opportunities, citing growth potential in household penetration and per capita consumption. Furthermore, Monster is expanding its affordable energy brands, Predator® and Fury®, across global markets, positioning itself to capture emerging demand. With a strong brand portfolio, an agile innovation pipeline, and a robust financial position, the company is well-placed to drive sustained growth in the global energy drink market.
Considering the above-mentioned fundamentals, a 'Buy' recommendation is given on the stock at the current market price of USD 63.10, as of June 05, 2025 at 10:20 AM PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Defensive Industry: Beverages - Non-Alcoholic
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MNST Monster Beverage Corp |
-0.9 1.19% | 74.44 | 32.69 | 30.03 | 7.81 | 6.68 | 7.32 | 26.73 |
| KO The Coca-Cola Company |
0.39 0.55% | 70.75 | 23.61 | 20.58 | 5.53 | 9.46 | 6.08 | 17.61 |
| PEP PepsiCo Inc |
0.04 0.02% | 150.41 | 26.80 | 20.62 | 2.53 | 12.49 | 2.90 | 16.87 |
| NNFSF Nongfu Spring Co. Ltd |
- -% | 6.40 | 47.42 | 40.49 | 1.74 | 20.38 | 1.67 | 4.05 |
| KDP Keurig Dr Pepper Inc |
-0.4 1.40% | 28.19 | 22.03 | 15.75 | 2.76 | 1.59 | 3.74 | 13.95 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Jun 05,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
