MNST - Monster Beverage: Is It Worth Buying This Beast?
2024-05-17 07:19:36 ET
Summary
- Monster Beverage Corporation reported strong Q1 2024 results with record revenues and increased net income.
- Sales growth is observed across all segments and geographic areas, indicating strong demand for Monster's drinks.
- MNST plans to seek authorization for share repurchases up to $3 billion, shifting towards debt financing for capital structure.
- On the other hand, the firm appears to be overvalued, which, we believe, is not justified.
- We maintain our hold rating.
Monster Beverage Corporation ( MNST ), through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. We have published our first article on the firm back in June 2022, assigning it a hold rating due to valuation concerns in an unstable macroeconomic environment. In April 2023, we have look at MNST once again from a profitability, efficiency and valuation perspective and have reiterated our previous neutral rating, citing once again valuation concerns....
Monster Beverage: Is It Worth Buying This Beast?