Monster Beverage (MNST) Lags In After-Hours Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Monster Beverage ( MNST) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Monster Beverage as such a stock due to the following factors:

  • MNST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.2 million.
  • MNST is down 7.3% today from today's close.

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More details on MNST:

Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes alternative beverage category beverages in the United States and internationally. It operates in two segments, Direct Store Delivery and Warehouse. MNST has a PE ratio of 50.8. Currently there are 6 analysts that rate Monster Beverage a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Monster Beverage has been 1.1 million shares per day over the past 30 days. Monster Beverage has a market cap of $23.9 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.64 and a short float of 1.5% with 1.43 days to cover. Shares are up 29.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Monster Beverage as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 12.0%. Growth in the company's revenue appears to have helped boost the 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. Along with this, the company maintains a quick ratio of 4.03, which clearly demonstrates the ability to cover short-term cash needs.
  • MONSTER BEVERAGE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MONSTER BEVERAGE CORP increased its bottom line by earning $2.78 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($3.35 versus $2.78).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 64.7% when compared to the same quarter one year prior, rising from $76.11 million to $125.33 million.
  • The gross profit margin for MONSTER BEVERAGE CORP is rather high; currently it is at 55.87%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.69% is above that of the industry average.

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