Monster Beverage Corporation (MNST) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Monster Beverage Corporation

Updated on October 28, 2026 · accounts published on August 6, 2026

Reading of October 27, 2026: A highly profitable business with net cash and fast-growing earnings

Monster Beverage trades at a P/E of 41.9 over the last 12 months, 87 % above its sector median, with a 21 % ROIC and net cash on the balance sheet.

• Is Monster Beverage expensive or cheap? Its P/E of 41.9 is 87 % above the sector median of 22.4, and the stock was cheaper 66 % of the last decade.
• How is the business doing? EPS grew 30 % over the last 12 months on 11 % revenue growth, with an operating margin of 29 %.
• How strong is the balance sheet? Monster Beverage has no debt and held $1.41 of net cash per share at the end of fiscal 2025.
• Is it as stable as the sector promises? It passes all seven consumer defensive tests, with a 56 % gross margin in fiscal 2025 against a 35 % threshold.
• What to expect from the next earnings? Analysts expect EPS of $0.30 when Monster Beverage reports on November 5, 2026, the same as last quarter.

Is Monster Beverage expensive or cheap?

Over the last 12 months Monster Beverage has traded at a P/E of 41.9. That is 8 % above its ten-year median of 38.9, and the stock has traded at a lower multiple 66 % of the time over the decade, in a range from 25.5 to 56.9. The gap with its sector is wider: the median consumer defensive company trades at 22.4 times earnings, so investors pay an 87 % premium. A free cash flow yield of 3 % and an EV/EBITDA of 30.6× point the same way, to a full multiple. After a 30 % rise over the last 12 months, the shares sit 9 % below their 52-week high of $49.97.

How is the business doing?

Revenue rose 11 % over the last 12 months while EPS jumped 30 %, so profits are growing much faster than sales. The operating margin of 29 % over the last 12 months matches fiscal 2025 but sits slightly below the 31 % average of 2014-2025, a small erosion worth watching. Returns on capital are the standout: a ROIC of 21 % over the last 12 months is 12 points above the sector median of 9 %, and it has stayed above 10 % in each of the last 10 fiscal years. A net margin of 23 % and a ROE of 25 % complete the profile of a business that turns sales into profit very efficiently.

How strong is the balance sheet?

At the end of fiscal 2025 Monster Beverage held $1.42 of cash per share against no debt, which left net cash of $1.41, about 3 % of the current share price. Net debt to EBITDA of −0.8× sits far below the 2.5× ceiling the sector considers healthy. Liquidity is ample, with a current ratio of 3.73 over the last 12 months, and an Altman Z-score of 29.3 puts the company deep in the safe zone. A Piotroski score of 8 out of 9 signals strong fundamentals. The company paid no dividend in fiscal 2025, so its payout ratio was 0 %.

Is it as stable as the sector promises?

Consumer defensive is where the dull, steady businesses Buffett favors live, so the checklist rewards margins that hold, cash that matches reported profit and steady earnings growth more than explosive expansion. Monster Beverage clears every bar. Its gross margin was 56 % in fiscal 2025, against a stable threshold of 35 %. Free cash flow reached 103 % of net income, against a healthy level of 90 %. EPS grew 15 % a year over 2015-2025, well above the 6 % benchmark. Its P/E of 41.9 also falls within 10 % of its ten-year average of 39.8. The one trait it lacks is the growing dividend these companies usually offer: it paid none in fiscal 2025.

What to expect from the next earnings?

Monster Beverage reports on November 5, 2026, and the consensus calls for EPS of $0.30. That is the same as the $0.30 it delivered on August 6, 2026, when it beat the $0.29 estimate by 3 %. The company has topped EPS estimates in 6 of the last 8 quarters, so a modest beat would fit its record. Expectations have barely moved: the 2026 EPS consensus stayed at $1.16 over the last 30 days, and revenue forecasts were just as stable. Of the 44 analysts covering the company, 22 recommend buying, 18 holding and 3 selling.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.