Asset Structure Analysis
Monster Beverage’s total assets were $9.7 billion and $8.3 billion as of December 31, 2023 and December 31, 2022, respectively.
Property and equipment, net were $890.8 million as of December 31, 2023, accounting for 9.2% of total assets.
Goodwill was $1.42 billion as of December 31, 2023, consisting of 14.6% of total assets.
Intangible assets, net were $1.43 billion as of December 31, 2023, making up 14.7% of total assets.
Total current assets were $5.6 billion as of December 31, 2023, comprising 57.7% of total assets.
Among total current assets, cash and cash equivalents were $2.3 billion, short-term investments were $955.6 million, accounts receivable, net were $1.2 billion, and inventories were $971.4 million.
Liquidity and Solvency
Total current assets were $1.16 billion as of December 31, 2023.
The current ratio was 4.8 times for 2023.
Total liabilities were about $1.26 billion as of December 31, 2023.
The debt ratio was 13% for 2023, which is very low.
As you can see, Monster Beverage’s liquidity is very sufficient, and the debt ratio is very low.
Profitability Analysis
Monster Beverage’s net sales were $7.14 billion, $6.31 billion and $5.54 billion in 2023, 2022 and 2021, respectively.
The net sales in 2023 were up 13.2% year-on-year.
The net sales in 2022 were up 13.9% year-on-year.
Gross profit was $3.8 billion, $3.17 billion and $3.1 billion in 2023, 2022 and 2021, respectively.
The gross profit margin was 53.2%, 50.2% and 56% in 2023, 2022 and 2021, respectively.
Net income was $1.63 billion, $1.2 billion and $1.38 billion in 2023, 2022 and 2021, respectively.
The net profit margin was 22.8%, 19% and 25% in 2023, 2022 and 2021, respectively.
Total stockholders’ equity was $8.2 billion and $7 billion in 2023 and 2022, respectively.
The return on equity was about 20% and 17.1% for 2023 and 2022, respectively.
Cash Flow Analysis
Net cash provided by operating activities was $1.7 billion, $887.7 million and $1.2 billion in 2023, 2022 and 2021, respectively.
Purchases of property and equipment were $221 million, $188.7 million and $43.9 million in 2023, 2022 and 2021, respectively.
Monster Beverage’s free cash flow was about $1.48 billion, $699 million and $1.16 billion for 2023, 2022 and 2021, respectively.
Purchases of common stock were $659 million, $771 million and $13.9 million in 2023, 2022 and 2021, respectively.
Monster Beverage’s operating performance for Q1 2024
Net sales were $1.9 billion and $1.7 billion in the three months ended March 31, 2024 and the three months ended March 31, 2023, respectively.
The net sales in Q1 2024 was up 11.8% year-on-year.
Conclusion
Monster Beverage’s balance sheet is very healthy, and profitability is very strong.
We reckon that Monster Beverage’s reasonable valuation is about $25 billion, while the company’s market capitalization is $51.15 billion, which is equivalent to $49.09 per share.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Monster Beverage develops, markets, sells and distributes energy drink beverages and concentrates for energy drink beverages.
