-0.30 | -0.52%
MONSTER BEVERAGE CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. MONSTER BEVERAGE CORP is extremely liquid. Currently, the Quick Ratio is 2.01 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 34.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 484.22 | 454.61 |
| EBITDA ($mil) | 112.37 | 131.25 |
| EBIT ($mil) | 107.31 | 126.29 |
| Net Income ($mil) | 63.5 | 76.1 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 344.67 | 811.03 |
| Total Assets ($mil) | 1147.37 | 1470.75 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 701.37 | 1067.33 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 53.1 | 54.14 |
| EBITDA Margin | 23.2 | 28.87 |
| Operating Margin | 22.16 | 27.78 |
| Sales Turnover | 1.82 | 1.22 |
| Return on Assets | 28.53 | 20.89 |
| Return on Equity | 46.68 | 28.78 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 2.84 | 4.46 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 165.66 | 176.2 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.37 | 0.41 |
| Book value / share | 4.23 | 6.06 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2303163.0 | 2187175.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 24.49 for the Beverages industry and a significant premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 13.51 indicates a significant premium versus the S&P 500 average of 2.44 and a significant premium versus the industry average of 6.83. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, MONSTER BEVERAGE CORP proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNST 31.43 | Peers 24.49 | MNST 31.72 | Peers 17.90 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. MNST is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MNST is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MNST 22.70 | Peers 21.73 | MNST 2.17 | Peers 2.19 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MNST is trading at a premium to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MNST trades at a valuation on par to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| MNST 13.51 | Peers 6.83 | MNST 10.30 | Peers 8.18 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MNST is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MNST is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| MNST 4.53 | Peers 4.83 | MNST 16.03 | Peers 5.43 | |||||||||||||||||||||
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Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MNST is trading at a valuation on par with its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. MNST has a sales growth rate that significantly exceeds its peers. |
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