$MNST (-0,73 %)

Opportunities and risks

Opportunities

Industry growing at 8% p.a., numerous growth drivers: More customers, more cans consumed per customer, better availability/more shelf space, introduction to new markets

Monster Beverage is gaining market share: The Group has already become the No. 1 player in the USA, international business is growing at 15-20 % p.a. - partly due to the distribution partnership with Coca-Cola

Highly profitable business model: Extraordinarily high cash generation through outsourcing of production and distribution

Extremely solid balance sheet: Equity ratio of 82% and net cash position of USD 2,100 million

Excellent management: Rodney Sacks and Hilton Schlosberg have been in office for more than 20 years and own 8.2 % of the outstanding shares

Outstanding track record: More than 20% annualized return over the last 20 years, revenue up every year since Monster Energy was launched

Risks

Industry growth could slow down:No sign of this at present, but one day the amount of energy drinks consumed globally will level off at a certain level. If profitability only grows by 2-4% per year, investors will no longer pay a 30 P/E ratio

Founders withdraw: Rodney Sacks has already moved to the Supervisory Board, Hilton Schlosberg is also already 73 years old. It is unclear what will happen next

Loss of market share due to new competitors: Celsius Holdings has managed to achieve a market share of 15% in the USA. The products are positioned as a healthier and more natural alternative to classic energy drinks

Valuation based on the P/E ratio

Over the last 20 and 10 years, Monster Beverage has been valued at an average P/E ratio of 30 and 34 respectively.

This average corresponds almost exactly to the current valuation level (P/E ratio 32, 2026e).

Based on the P/E indicator, the Monster Beverage share appears fairly valued.

Whenever the P/E ratio has fallen to 25, there has been a particularly cheap entry opportunity in the past 15 years. This would require the price of a share to fall to USD 52.50

Conclusion: Monster Beverage shares are an excellent buy-and-hold quality stock

Operational development

Monster Beverage is a growth stock straight out of a picture book: around 10% annual profit growth, 30% EBIT margin, hardly any capital tied up and a debt-free balance sheet.

Widespread tiredness in society (ever more screen time due to smartphones, streaming services and video games) is at the expense of sleep duration. The sleep deficit is compensated for by an ever-increasing consumption of caffeinated drinks.

An end to this growth trend is not yet in sight in any relevant sales market. As consumers are also very loyal to the brand, there are many indications that the profitable growth trend will continue in the long term.

The distribution partnership with Coca-Cola enables Monster Beverage to gain global market share.

Valuation

No question, with a P/E ratio of 32 (2026e) and a free cash flow yield of 2.8% (2026e), Monster Beverage shares are anything but cheaply valued compared to the current earnings power.

However, the company is in a position to grow into the valuation level through strong earnings growth.

Conclusion: Monster Beverage shares are an excellent buy-and-hold quality stock

Operational development

Monster Beverage is a growth stock straight out of a picture book: around 10% annual profit growth, 30% EBIT margin, hardly any capital tied up and a debt-free balance sheet.

Widespread tiredness in society (ever more screen time due to smartphones, streaming services and video games) is at the expense of sleep duration. The sleep deficit is compensated for by an ever-increasing consumption of caffeinated drinks.

An end to this growth trend is not yet in sight in any relevant sales market. As consumers are also very loyal to the brand, there are many indications that the profitable growth trend will continue in the long term.

The distribution partnership with Coca-Cola enables Monster Beverage to gain global market share.

Valuation

No question, with a P/E ratio of 32 (2026e) and a free cash flow yield of 2.8% (2026e), Monster Beverage shares are anything but cheaply valued compared to the current earnings power.

However, the company is in a position to grow into the valuation level through strong earnings growth.

Personal approach

As an anticyclical long-term investor, I am waiting for a price decline as a result of a market overreaction towards P/E 25 or towards 50$.

Source and complete article

https://abilitato.de/monster-beverage-aktie-mit-reichlich-energy-starkes-wachstum-steigende-margen-fuerstliche-bilanz/?ml_recipient=167607952591554481&ml_link=167607936069142462&utm_source=newsletter&utm_medium=email&utm_term=2025-10-07&utm_campaign=Diese+Aktie+wächst+plötzlich+wieder+zweistellig

While many consumer goods companies reliably pay out dividends, Monster ($MNST (-0,73 %) ) has been taking a different approach for years.

No dividends, but massive share buybacks.

1. what is behind the buybacks? 💵

• Monster Beverage generates high free cash flows and used them in 2024 to spend an impressive USD 3.77 billion on buybacks.

• The largest block was in the second quarter of 2024 with USD 3.11 billion.

• This reduces the number of shares and increases earnings per share in the long term.

• Comparison with peers: While Coca-Cola pays out over USD 8 bn in dividends every year, Monster invests the majority of its cash flow in buybacks. This shows the clear difference in capital strategy.

2. why this is so strong 🔄

• Tax advantage: shareholders only have to pay tax on the sale, while dividends are taxed immediately.

• Flexibility: buybacks can be stopped or extended. Dividends, on the other hand, are difficult to reduce without scaring off the stock market.

• Signal: Buybacks show that the management believes in its own shares.

• Ownership structure: Coca-Cola holds around 19% of Monster. This means that Coca-Cola shareholders ($KO (+3,77 %) ) benefit indirectly from the buybacks.

3. opportunities and risks 📈

• Pro: In the long term, earnings per share increase without the company having to grow. This can stabilize the share price. Since 2018, Monster has increased its number of shares by around 10 % reduced. The effect is clearly visible in earnings per share.

• Cons: If the share is already highly valued, buybacks can destroy capital. In 2024, Monster was criticized several times for its high valuation.

4️. Conclusion 👉

Monster has a clear shareholder focus, but without a dividend.

Whether this is an advantage depends on whether you see buybacks as an intelligent allocation of capital or as a lack of distribution.

...it's not directly about the stock market, but about the (other) most beautiful minor matter in the world 😁

But also indirectly about $BVB (+1,08 %)
$BAYN (-0,46 %)
$VOW (-0,51 %)
$SAP (+0,85 %)
$MNST (-0,73 %) *

We are already a good two dozen tipsters, but would love to have more ✌️

https://www.kicktipp.de/tippers-of-getquin/

Greetings

🥪

*or a competitor 😉

$BNTX (-0,73 %)
$KSPI (-0,31 %)
$HIMS (-0,35 %)
$MELI (+1,81 %)
$PLTR (-0,13 %)
$DRO (-5,61 %)
$IFX (+3,4 %)
$9434 (+2,05 %)
$FR0010108928
$DHL (-0,43 %)
$BOSS (-0,91 %)
$CONTININS
$DOCN (-0,86 %)
$LMND (+2,99 %)
$BP. (-0,05 %)
$FRA (-3,38 %)
$PFIZER
$SNAP (+2,39 %)
$AMD (-0,91 %)
$SMCI (-0,14 %)
$OPEN (-0,55 %)
$CPNG (-0,52 %)
$LCID (+0,64 %)
$CBK (-1,63 %)
$ZAL (-0,09 %)
$NOVO B (-1,33 %)
$VNA (+0,82 %)
$BAYN (-0,46 %)
$UBER (+0,27 %)
$SHOP (-0,79 %)
$MCD (+0,34 %)
$DIS (+1,95 %)
$ROK (+0,98 %)
$ABNB (+1,48 %)
$RUN (+3,6 %)
$FTNT (+0,06 %)
$O (-0,11 %)
$DASH (-0,58 %)
$DUOL
$S92 (-0,57 %)
$DDOG (+1,7 %)
$SEDG (+1,12 %)
$QBTS (-4,42 %)
$RHM (-0,71 %)
$DTE (-0,63 %)
$ALV (+0 %)
$LLY (+0,29 %)
$CYBR (+1,13 %)
$PTON (+3,5 %)
$DKNG (-0,43 %)
$RL (+1,61 %)
$PINS
$TTWO (-0,94 %)
$TWLO (+2,33 %)
$MNST (-0,73 %)
$STNE (-0,06 %)
$MUV2 (+0,26 %)
$WEED (-0,83 %)
$GOOS (+2,92 %)
$PETR3T
$ANET (+0,7 %)

Since people have often posted here about $CELH I took the opportunity to put a few cans in my snack cellar for a tasting. As I naturally don't do this for my own private enjoyment, I'm now posting a mini review including a comparison with the competition. After all, I wouldn't dream of paying €2.90 per can just for pleasure and not thinking about the added value for the community ;-)

--- REVIEW ---

The Celsius cans are imported goods from the UK and Sweden. However, the prices are also quite steep in their home country at £1.79 for 355 ml. The drinks are sugar-free and contain lots of caffeine and taurine as well as vitamin C and B vitamins and "extracts of guarana, ginger and green tea", whatever that means.

The taste of the Celsius drinks is quite convincing. Of course, this always depends on the variety, but the flavors I tested were all okay - neither particularly good nor particularly bad. The only outstanding flavor for me personally was Berry Lemonade because it reminded me of something I used to eat or drink on vacation as a child.

-- Competitor analysis

When comparing the position on the market, there is no getting around the comparison with industry leader Red Bull. In direct comparison, Celsius is aimed at a more health-conscious target group. This is made clear by the fact that Red Bull dispenses with vitamins C, B2 and B7 and does not use any plant extracts. Red Bull was also very slow to offer sugar-free versions of its drinks, and these are rarely available in German supermarkets.

However, the almost homeopathic use of caffeine in Red Bull is also noticeable. I would argue, however, that this has nothing to do with the brand, but that there is probably some bullshit law on caffeine limits to protect citizens from the consequences of their choices. At least all the brands tested from Germany only had a maximum caffeine content of 32mg/100ml, while all the products tested from abroad contained around 55mg/100ml of caffeine. In any case, it was quite an adjustment for me to suddenly be twice as awake as before after consuming a maximum of 1 can per day. (If anyone feels generous enough to reward me for the mortal danger I have put myself in for you, you are of course welcome to support me with coins)

Apart from Red Bull, which is not listed on the stock exchange, the biggest competition is of course the world's biggest soft drink manufacturers. Pepsi $PEP (+0,18 %) has a wholly owned subsidiary Rockstar Energy, which became part of the group following a takeover in 2020. Coca Cola $KO (+3,77 %) on the other hand, has a 20% stake in the Monster Beverage Corporation $MNST (-0,73 %)

It is interesting to note that the two global corporations missed out on the entry into the trend drink for a long time and are only participating to a limited extent now. In typical Pepsi fashion, Rockstar is a very uninnovative brand that fails to attract attention through clever marketing. Pepsi, aware of this, felt compelled to invest money in Celsius and enter into a partnership.

Monster is somewhat more agile overall and is trying to break away from the sometimes negative image of the core brand through social media campaigns and diversification. Monster's portfolio also includes the Reign Energy brand, which uses certain additives to target the sports scene. (Interestingly, Reign also has a fairly unknown sub-brand with a white can instead of a black one, which in my opinion is very specifically oriented towards Celsius)

-- Market shares

In addition to the well-known large corporations, there are countless small players in the energy drinks market. The market for energy drinks is much more fragmented than the market for classic soft drinks and colas, in which the large corporations essentially account for over 90% of the market share.

Many influencers and sports brands are now also launching their own energy drinks. Probably the best known is GÖNRGY from Montana Black. The drink NOCCO from Sweden is also very well known throughout Europe. Funnily enough, Sweden also has a special relationship with Celsius, where the drink was originally more popular than in the USA itself.

-- Conclusion

It would go too far to analyze the company and its key figures, but I will be happy to do so if required. From a consumer perspective, I would buy the products again if they were significantly cheaper. From an investor's point of view, I find the company more interesting than traditional consumer goods stocks. The market for energy drinks is much more exciting and dynamic than many other food products. Especially as caffeine and possibly sugar create a certain habituation, but are not quite as controversial as nicotine or tobacco investments, for example.

Nevertheless, a certain amount of caution is advisable. In the energy drink market, a great deal depends on marketing. Red Bull in particular is very strong here and has many fans, which is mainly due to the close (and costly) link between the drink and a number of extreme sports. This is both a blessing and a curse. The opportunity lies in being able to sell relatively cheap ingredients for juicy prices through good PR, but you are in constant competition with other players who are trying to do the same. Basically, the products of the different brands are all very similar, so it is very little about producing the best drink and very much about having a good image.

In this respect, there is a very strong leverage that can swing in both directions.

P.S. It took me almost 1.5 hours to write this text about funny colorful fizzy drinks.

General Mills $GIS (+0,08 %) (fair-favorable, interesting)

Wal-Mart de Mexico $WALMEX* (-0,35 %) (downtrend - weak peso?)

P&G $PG (+0,04 %)

Costco $COST (+0,7 %)

Church & Dwight $CHD (-0,15 %) (very expensive - silent expansion underway? see German website)

Pepsi $PEP (+0,18 %)

Monster $MNST (-0,73 %)

Coca Consol $COKE (+0,88 %)

Lotus Bakeries $LOTB (+1,79 %)

Mondelez $MDLZ (-0,75 %)

Hershey $HSY (-0,03 %)

Most of them are still "very" expensive in my opinion, despite the current price declines.

I would be interested to know which are your favorites for a long-term investment?

March is already over, daylight saving time is on and by the time you read this, it will be "liberation day". Let's see what Mr. Trump does today at noon. But that will probably be the subject of April.

For now, let's take a look back at my March 2025.

I posted a loss of 3.09% in March. With my portfolio size, this corresponds to a value of almost €4,000. The Dax (-1.72%) beat me again, but compared to the HSBC MSCI World (-7.88%) I am still doing very well.

Over the year (YTD), I lost ground to the DAX, which remained fairly stable, but at the same time I was able to extend my lead over the MSCI World. After all...

Overall, however, I am also satisfied in March. As in February, my portfolio is quite stable compared to the MSCI World. Yes, in good phases I forego profits, but I don't have so many losses now. Volatility is supposed to be a real mental challenge for some people. I'm just glad that things are a bit more subdued for me.

My high and low performers in February were (top 3):

$EOAN (-0,3 %) EON +13.45%

$UNH (+1,14 %) UnitedHealth +7.15%

$ALV (+0 %) Allianz +6.60%

$RACE (+0,98 %) Ferrari -12.35%

$LLY (+0,29 %) Lilly -13.04%

$MC (+0,72 %) LVMH -17.71%

Funny that UnitedHealth was the second worst performing stock in February and now the second best.

Dividends:

In March, I received a net €165.60 from a total of 22 distributions.

Compared to March 2024 (€128.38), that was an increase of 28.99%

Investments:

As I mentioned in February, I am still building up my nest egg again. This is also not yet complete.

A special payment is due in April, but this will go into the $XEON (-0 %) as I am saving all the special payments for the loan repayment in 5 years' time.

I have actually stopped some savings plans in order to have more money for individual purchases or to build up cash. More on this later.

Buying and selling:

There were no sales this month.

I bought Ferrari, and there is still room here until the position is full.

As I mentioned above, I stopped some savings plans. Realty, STAG, Gladstone Investment and Hercules Capital have been stopped. I would like to add to Realty again to fill the position (I'm still €300 short). The price of the others is moving sideways, so I imagine that I will be able to buy them at a later date at the same price.

Savings plans (total €175):

• Cintas ($CTAS (+1,74 %) )
• LVMH ($MC (+0,72 %) )
• Monster Beverage ($MNST (-0,73 %) )
• Microsoft ($MSFT (+0,02 %) )

Goals 2025:

My goal is to have €130,000 in my portfolio at the end of the year. The goal is to be achieved by reinvesting the dividend, making payments and, of course, increasing the share price. The share price increase is of course impossible to predict in any way, so the motto is: if the share price falls or does not rise enough, more cash is needed.

This comes from the sale of useless items on eBay, additional income from e.g. "neighborhood help", etc. The worse the share price, the more additional cash has to be raised.

Target achievement at the end of March 2025: 21.05%

So I'm on the right track (so far), although I would have needed a bit more in March to maintain the average. Well, everything is still open at the moment.

Now I'll wait and see what tariffs come in today (or not), look forward to the dividends and just wait and see. "Because doing nothing often leads to the very best of something."

How was your March? I have the latent hope that, for once, I did better in March than my usual 50% or so of the getquin community.

#washbaerreview

Purchase of ~$300K from Hims $HIMS (-0,35 %)

Sale of ~$250K from Schwab $SCHW (-0,79 %)

Purchase of ~$250K from Block $SQ (+2,97 %)

Sale of ~$250K from Monster $MNST (-0,73 %)

Purchase of ~$250K from Microsoft $MSFT (+0,02 %)

The second month of 2025 is already over. Time is flying by again at breakneck speed and one event or statement follows the next this year. It's crazy what's going on at the moment and at the same time the market is somehow saying "I don't care".

Up down, up down, the markets are becoming more volatile and yet, or precisely because of this, my February was almost at +/-0.

But one thing at a time.

In February I achieved a plus of 0.8%. With my portfolio size, this corresponds to a value of almost €900. Not particularly good compared to the Dax (+3.77%), but still very respectable compared to the HSBC MSCI World (-2.49%).

Unfortunately, things do not look any better over the year (YTD).

The Dax is running away with 13.3%, while the MSCI World is bobbing along at 1.6%. Here, too, I was at least able to beat the World, but I still lag miles behind the DAX.

Overall, however, I am still very satisfied. As I don't have a lot of tech in my portfolio and my stocks are (mostly) rather stable, there is often no outperformance of the stocks and if there is, it is only marginal.

My high and low performers in February were (top 3):

$HSY (-0,03 %) Hershey +15.63%

$T (+0,26 %) AT&T +14.07%

$NESN (-2,01 %) Nestle +13.10%

$ADM (-1,52 %) Archer Daniels -8.57%

$UNH (+1,14 %) United Health -13.16%

$TSLA (+0,32 %) Tesla -27.59%

Dividends:

In February, I received a net €123.62 from a total of 10 distributions.

Compared to February 2024 (€99.26), this was an increase of 24.54%

Investments:

Due to the construction work on the house last year, the focus continues to be on building up the nest egg and saving up a "leisure account" again, as everything was really used up completely last year and only the custody account remained.

The savings plans will of course continue unabated, but individual investments are probably not possible for the time being.

Purchases and sales:

I have parted with Mercedes ( $MBG (+0,48 %) ) and Medical Properties ( $MPW (+0,25 %) ).

I then added to Lockheed Martin ( $LMT (-3,41 %) ), Hershey ( $HSY (-0,03 %) ) and Petroleo Brasileiro ( $PETR4 (-1,09 %) ).

My savings plans remain unchanged, but it is quite possible that I will stop them for the time being in order to build up investment cash again.

Savings plans (350€ in total):

• Realty ($O (-0,11 %) )
• STAG Industrial ($STAG (+0,04 %) )
• Gladstone Invest ($GAIN (+0,58 %) )
• Hercules Capital ($HTGC (+1,73 %) )
• Cintas ($CTAS (+1,74 %) )
• LVMH ($MC (+0,72 %) )
• Monster Beverage ($MNST (-0,73 %) )
• Microsoft ($MSFT (+0,02 %) )

Goals 2025:

My goal is to have €130,000 in my portfolio at the end of the year. The goal is to be achieved by reinvesting the dividend, making payments and, of course, increasing the share price. The share price increase is of course impossible to predict in any way, so the motto is: if the share price falls or does not rise enough, more cash is needed.

This comes from selling useless stuff on eBay, additional income from e.g. "neighborhood help" etc. The worse the share price, the more additional cash has to be raised.

Target achievement at the end of February 2025: 37.41%

So I'm on the right track (so far). I'm curious to see what else will happen in 2025 and hope that the crash, which seems to be getting closer and closer, will take a little longer (so that I can continue to accumulate cash).

How was your February? Are you happy so far? I think that, due to the volatility, the portfolios in February are far more spread out than they were in January or even at the end of last year.