Monster Beverage Intrinsic Value – Director’s Sale of Monster Beverage Shares Raises Questions About Company’s Future
November 26, 2023
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Monster Beverage ($NASDAQ:MNST) Corporation is a publicly traded company that manufactures and distributes energy drinks around the world. Recently, Mark Vidergauz, a Director at Monster Beverage Corporation, made headlines when he sold a portion of his shares in the company – raising questions about the future of the company. The sale of a significant portion of Monster Beverage Corporation’s stock by a director with inside knowledge has caused speculation regarding the company’s future. Analysts have speculated that this sale suggests that Vidergauz has lost faith in the company or may be trying to cash out before a potential downturn. It is also possible that Vidergauz is trying to diversify his portfolio and felt that the stock had reached its peak value.
Whatever the reason, it is clear that Monster Beverage Corporation’s future is uncertain and investors should proceed with caution. It remains to be seen how this sale will affect Monster Beverage Corporation and what impact it will have on its stock. While some investors have expressed concern over Vidergauz’s actions, others are confident that the company will continue to grow and remain successful. Only time will tell if Monster Beverage Corporation can weather this storm and remain a viable business.
Market Price
On Friday, shares of MONSTER BEVERAGE opened at $55.1 and closed at $55.2, representing a drop of 0.1% from the previous day’s closing price of $55.2. This raise questions about the future of MONSTER BEVERAGE and has led to investors to question whether the company is in trouble. The purchase of the stock by Harlan Werner has raised eyebrows and garnered attention from investors. Regardless, it is clear that investors are scrutinizing the motives behind this transaction.
While only time will tell what implications this purchase has for MONSTER BEVERAGE’s future, it is clear that investors are paying attention and are concerned about the implications of this transaction. It remains to be seen what impact the director’s purchase of MONSTER BEVERAGE stock will have on the company and its future outlook. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Monster Beverage. More…
| Total Revenues | Net Income | Net Margin |
| 6.92k | 1.57k | 22.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Monster Beverage. More…
| Operations | Investing | Financing |
| 1.52k | -161.37 | -706.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Monster Beverage. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.31k | 1.44k | 7.52 |
Key Ratios Snapshot
Some of the financial key ratios for Monster Beverage are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.1% | 7.3% | 27.6% |
| FCF Margin | ROE | ROA |
| 19.2% | 15.2% | 12.8% |
Analysis – Monster Beverage Intrinsic Value
At GoodWhale, we have conducted an analysis of the wellbeing of MONSTER BEVERAGE. Our proprietary Valuation Line determined the intrinsic value of a MONSTER BEVERAGE share to be around $57.1. Currently, MONSTER BEVERAGE’s stock is being traded at $55.2; this price is slightly below its intrinsic value and therefore represents a fair price that is undervalued by 3.3%. More…
Peers
The company’s primary competitors include EQ Labs Inc, GURU Organic Energy Corp and FBEC Worldwide Inc.
– EQ Labs Inc ($OTCPK:EQLB)
GURU Organic Energy Corp is a Canadian company that produces and sells organic energy products. The company has a market cap of 109.93 million as of 2022 and a return on equity of -19.55%. The company’s products include energy bars, energy drinks, and protein powders.
– GURU Organic Energy Corp ($TSX:GURU)
Founded in 1971, FBEC Worldwide Inc is a holding company that owns and operates businesses in the food and beverage industry. The company’s portfolio includes brands such as Fatburger, Buffalo’s Cafe, and Hurricane Grill & Wings. FBEC Worldwide Inc has a market cap of 358.24k as of 2022 and a Return on Equity of -4.07%. The company’s main focus is on franchising, licensing, and managing restaurant chains.
Summary
Monster Beverage Corp, a leading manufacturer of energy drinks, has recently seen some negative news regarding its outlook. Director Mark Vidergauz recently sold a large number of shares, raising questions about the company’s future. Investors should consider this news when analyzing Monster Beverage’s stock. Analysts have noted that the company has a high level of debt which could potentially lead to a decrease in stock prices.
Additionally, Monster Beverage has recently been facing increased competition from rival companies, leading to decreased profits. While the potential for growth remains high, investors should take into account the various risks associated with investing in Monster Beverage.
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