Price to Operating Profit (P/OP)
since 2005
Calculation
Monster Beverage Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 29, 2024 | 31.49 | = | 59.10 | ÷ | 1.88 | 1.88 | = | 1,953,355 | ÷ | 1,040,636,235 | |
| Mar 1, 2023 | 32.70 | = | 49.60 | ÷ | 1.52 | 1.52 | = | 1,584,721 | ÷ | 1,044,818,716 | |
| Feb 28, 2022 | 24.86 | = | 42.20 | ÷ | 1.70 | 1.70 | = | 1,797,467 | ÷ | 1,058,717,720 | |
| Mar 1, 2021 | 28.32 | = | 43.78 | ÷ | 1.55 | 1.55 | = | 1,633,153 | ÷ | 1,056,274,072 | |
| Feb 28, 2020 | 23.89 | = | 31.21 | ÷ | 1.31 | 1.31 | = | 1,402,939 | ÷ | 1,073,792,284 | |
| Feb 28, 2019 | 27.01 | = | 31.92 | ÷ | 1.18 | 1.18 | = | 1,283,619 | ÷ | 1,086,296,338 | |
| Mar 1, 2018 | 25.62 | = | 27.11 | ÷ | 1.06 | 1.06 | = | 1,198,787 | ÷ | 1,132,805,496 | |
| Mar 1, 2017 | 21.94 | = | 21.01 | ÷ | 0.96 | 0.96 | = | 1,085,338 | ÷ | 1,133,238,686 | |
| Feb 29, 2016 | 28.50 | = | 20.92 | ÷ | 0.73 | 0.73 | = | 893,653 | ÷ | 1,217,519,022 | |
| Mar 2, 2015 | 32.12 | = | 23.54 | ÷ | 0.73 | 0.73 | = | 747,505 | ÷ | 1,020,097,932 | |
| Mar 3, 2014 | 21.15 | = | 12.10 | ÷ | 0.57 | 0.57 | = | 572,916 | ÷ | 1,001,262,984 | |
| Mar 1, 2013 | 15.23 | = | 8.44 | ÷ | 0.55 | 0.55 | = | 550,623 | ÷ | 993,275,160 | |
| Feb 29, 2012 | 21.84 | = | 9.53 | ÷ | 0.44 | 0.44 | = | 456,423 | ÷ | 1,045,856,052 | |
| Mar 1, 2011 | 14.43 | = | 4.70 | ÷ | 0.33 | 0.33 | = | 347,814 | ÷ | 1,068,063,168 | |
| Mar 1, 2010 | 10.95 | = | 3.49 | ÷ | 0.32 | 0.32 | = | 337,309 | ÷ | 1,057,928,316 | |
| Mar 2, 2009 | 18.24 | = | 2.75 | ÷ | 0.15 | 0.15 | = | 163,591 | ÷ | 1,084,823,592 | |
| Feb 29, 2008 | 16.77 | = | 3.46 | ÷ | 0.21 | 0.21 | = | 230,986 | ÷ | 1,119,513,492 | |
| Jun 6, 2007 | 22.42 | = | 3.29 | ÷ | 0.15 | 0.15 | = | 158,579 | ÷ | 1,080,709,488 | |
| Mar 15, 2006 | 24.43 | = | 2.36 | ÷ | 0.10 | 0.10 | = | 103,443 | ÷ | 1,070,736,288 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
- Share Price
- The share price displays an overall upward trend from 2006 through 2024, increasing from $2.36 to $59.10. Notable increments occur between 2010 and 2015, where the price rises substantially from $3.49 to $23.54, and again from 2020 to 2024, moving from $31.21 to $59.10. Some volatility is observed during this period, with slight decreases such as the dip from $23.54 in 2015 to $20.92 in 2016, and more variability around 2012 to 2014. Despite these fluctuations, the long-term trajectory reflects strong growth.
- Operating Profit Per Share
- The operating profit per share exhibits consistent growth across the observed periods, starting at $0.10 in 2006 and reaching $1.88 in 2024. There are temporary plateaus, for example, steady values around 2015 and 2016 at approximately $0.73, but the general progression is upward. This indicator suggests improving operational efficiency and profitability over time, supporting the rise in market valuation.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio is more volatile compared to the other metrics, ranging from a low of approximately 10.95 in 2010 to highs above 32 in more recent years, particularly near 2015 and beyond. This ratio shows periods where the share price outpaces operational earnings growth, potentially reflecting market optimism or changing investor expectations. The decline in P/OP ratio around 2010 suggests a phase where value improved relative to operating profit, but subsequent fluctuations indicate varied investor sentiment or external market factors affecting valuation.
- Summary Insights
- Overall, the data reveals a company experiencing steady enhancements in operating profitability and substantial increases in share price over nearly two decades. The increasing operating profit per share demonstrates operational improvements, while the rising share price reflects growing investor confidence and company valuation. The P/OP ratio's variability suggests changing market perceptions of the company's future earnings potential, with periods of both greater appreciation relative to earnings and times of more conservative valuation. The data highlights a successful long-term growth trajectory punctuated by typical market fluctuations.
Comparison to Competitors
Monster Beverage Corp., P/OP, long-term trends, comparison to competitors
| Monster Beverage Corp. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 29, 2024 | 31.49 | 23.14 | 18.81 | 19.23 | 11.96 |
| Mar 1, 2023 | 32.70 | 23.72 | 25.43 | 20.67 | 12.96 |
| Feb 28, 2022 | 24.86 | 26.19 | 20.00 | 20.87 | 12.90 |
| Mar 1, 2021 | 28.32 | 24.03 | 20.60 | 18.47 | 11.43 |
| Feb 28, 2020 | 23.89 | 24.95 | 21.87 | 19.78 | 12.92 |
| Feb 28, 2019 | 27.01 | 22.54 | 20.45 | 16.10 | 10.48 |
| Mar 1, 2018 | 25.62 | 25.05 | 17.88 | 15.15 | 13.91 |
| Mar 1, 2017 | 21.94 | 20.80 | 26.97 | 15.57 | 14.71 |
| Feb 29, 2016 | 28.50 | 21.91 | 7.02 | 16.77 | 13.31 |
| Mar 2, 2015 | 32.12 | 18.91 | 18.81 | 15.51 | 10.98 |
| Mar 3, 2014 | 21.15 | 16.40 | 14.48 | 12.25 | 9.26 |
| Mar 1, 2013 | 15.23 | 15.90 | 12.95 | 12.76 | 11.10 |
| Feb 29, 2012 | 21.84 | 15.42 | 10.07 | 10.32 | 10.71 |
| Mar 1, 2011 | 14.43 | 17.36 | 9.83 | 12.07 | 9.99 |
| Mar 1, 2010 | 10.95 | 14.76 | 7.72 | 12.18 | 9.18 |
| Mar 2, 2009 | 18.24 | 11.26 | 8.77 | 11.71 | 6.69 |
| Feb 29, 2008 | 16.77 | 19.05 | 11.16 | 16.02 | — |
| Jun 6, 2007 | 22.42 | 17.46 | 11.73 | 16.43 | — |
| Mar 15, 2006 | 24.43 | 16.34 | 10.73 | 16.65 | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).