Monster Beverage Corp Stock Buy Recommendation Reiterated (MNST)
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- MNST's revenue growth has slightly outpaced the industry average of 2.2%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- MNST has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MNST has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Beverages industry and the overall market, MONSTER BEVERAGE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- MONSTER BEVERAGE CORP's earnings per share declined by 9.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MONSTER BEVERAGE CORP increased its bottom line by earning $1.86 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus $1.86).
- Net operating cash flow has increased to $45.89 million or 24.81% when compared to the same quarter last year. Despite an increase in cash flow, MONSTER BEVERAGE CORP's cash flow growth rate is still lower than the industry average growth rate of 58.63%.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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