Monster Beverage Corporation (MNST)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

In my experience, a business that earns 25.70% on equity and 17.48% on capital employed while carrying debt-to-equity of 0.01 is a wonderful enterprise. Monster Beverage sells energy drinks and related beverages, and in fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $2.5B and net income of $584.5M, a 23.04% net margin. For fiscal 2025, the period ended 2025-12-31, it earned $1.9B on $8.3B of revenue, up from $1.5B on $7.5B in fiscal 2024, the period ended 2024-12-31. That is real growth, and the balance sheet, with an Altman Z-Score of 14.84, looks fortress-like. The high margins and returns suggest some brand strength or pricing power, though I cannot quantify a moat from these figures alone. The trouble is price. At the 2026-10-13 close of $43.31, FairStock calculates a P/E of 40.10, a P/B of 9.06, an EV/EBITDA of 14.08, and a Graham Number of $10.78, implying a margin of safety of -301.76%. The FCF yield is 4.9%. FairStock’s Lynch classification is Slow Grower because long-term profit growth was 6.2% a year and revenue 12.5% over five years, even though recent quarters are stronger. A PEG of 1.40 is not outrageous for quality, but Graham would demand a much wider discount. Piotroski is only 5/9. I admire the business but not the price; the market already capitalizes much of its future. Great company, demanding valuation.

In plain English: Monster Beverage sells energy drinks and other beverages. The business looks strong because it makes high profits, carries almost no debt, and sales and profits have grown. At $43.31, the stock looks expensive compared with the company's current earnings and assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer