Saturday, June 9, 2018

Is Monster Beverage a Buy?

After the 5% move upward yesterday, I thought it would be interesting to take a look at the companies fundimentals to see if they are currently undervalued.

Right off the bat, they have a pretty hight gross margin showing they have some nice pricing power. I mean other than Red-Bull they have no other serious competition. Along with the large gross margins, they have been increasing revenue for the past 10 years. Always nice to see.

When it comes to the key ratios they show some pretty stellar numbers. Large ROE, big net margins, and NO DEBT.

Overall though, the price is pretty high right now. We are looking at a P/E of 35 and trading on the larger side of my opinion when it came to their inrinsic value. I believe there is something interesting here but until it comes on sale, I will be staying away.

What do you think, are you adding $MNST to your portfolio?



Submitted June 09, 2018 at 10:38AM by sisumoney https://ift.tt/2sRG7zN

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