Monster Beverage Corp Rates High in Value Investor Model

Stock rating for Monster Beverage Corp reflects strong fundamentals. The analysis reveals a 71% score, indicating solid long-term earnings growth and low debt, likely to positively impact stock prices.

Date: 10-01-2025

AI Rating: 6

Stock Rating Analysis
Monster Beverage Corp (MNST) has received a rating of 71% under a deep value methodology associated with Benjamin Graham. This rating is based on underlying fundamentals and stock valuation. Since a score above 80% usually suggests interest in the stock, a 71% rating presents a favorable view, indicating potential for stability in stock prices.

Highlights of the Strategy Tests
The analysis shows that Monster Beverage meets several important criteria: - **Sector:** PASS - **Sales:** PASS - **Current Ratio:** PASS - **Long-Term Debt in Relation to Net Current Assets:** PASS - **Long-Term EPS Growth:** PASS
However, two criteria did not pass: - **P/E Ratio:** FAIL - **Price/Book Ratio:** FAIL
This data suggests that while the company shows strength in other areas such as sales and EPS growth, it struggles with its valuation ratios (P/E and Price/Book), which could affect investor sentiment negatively.

Conclusion
The overall positive indicators may reassure investors but the failing aspects related to valuation ratios highlight caution. A lower P/E ratio could indicate that the stock is undervalued, which could attract some investors looking for value opportunities in the long term. However, the failing P/B ratio suggests the company may be perceived as overvalued depending on the market context. This contradicting information could create volatility in stock prices if market perceptions shift quickly.

Stocks: MNST