Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Monster Beverage Corp., FCFE calculation
US$ in thousands
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).
The cash flow profile from 2019 to 2023 is characterized by moderate volatility, featuring a period of contraction followed by a significant expansion in the most recent fiscal year. Both net cash provided by operating activities and free cash flow to equity exhibit a highly synchronized trajectory, indicating that FCFE is primarily driven by operational performance.
- Operating Cash Flow Trends
- Net cash provided by operating activities increased from 1.11 billion USD in 2019 to a peak of 1.36 billion USD in 2020. A subsequent decline was observed over the following two years, with cash flows falling to 1.16 billion USD in 2021 and reaching a five-year low of 887.7 million USD in 2022. This trend reversed sharply in 2023, with operating cash flows surging to 1.72 billion USD, the highest value in the analyzed period.
- Free Cash Flow to Equity (FCFE) Performance
- FCFE mirrored the operational trend, rising to 1.29 billion USD in 2020 before decreasing to 1.10 billion USD in 2021 and 676.9 million USD in 2022. Similar to the operating cash flow, FCFE experienced a robust recovery in 2023, climbing to 1.47 billion USD. The parity between these two metrics suggests that capital expenditures and net debt movements remained relatively proportional to the overall cash generation.
- Comparative Analysis and Liquidity Insights
- The correlation between operating cash flows and FCFE suggests a stable relationship between the company's ability to generate cash from its core business and the residual cash available to equity holders. The sharp decline observed in 2022 across both metrics indicates a period of temporary liquidity compression, which was effectively mitigated by the substantial growth recorded in 2023.
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Price to FCFE Ratio, Current
Monster Beverage Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,041,728,228 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,471,635) |
| FCFE per share | 1.41 |
| Current share price (P) | 54.67 |
| Valuation Ratio | |
| P/FCFE | 38.70 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Coca-Cola Co. | 74.20 |
| Mondelēz International Inc. | 14.90 |
| PepsiCo Inc. | 14.74 |
| Philip Morris International Inc. | 25.90 |
| P/FCFE, Sector | |
| Food, Beverage & Tobacco | 27.18 |
| P/FCFE, Industry | |
| Consumer Staples | 37.06 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Monster Beverage Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,040,636,235 | 1,044,818,716 | 1,058,717,720 | 1,056,274,072 | 1,073,792,284 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 1,471,635) | 676,934) | 1,102,544) | 1,294,798) | 991,034) | |
| FCFE per share3 | 1.41 | 0.65 | 1.04 | 1.23 | 0.92 | |
| Share price1, 4 | 59.10 | 49.60 | 42.20 | 43.78 | 31.21 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 41.79 | 76.56 | 40.52 | 35.71 | 33.82 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Coca-Cola Co. | 22.42 | 29.91 | 23.29 | — | — | |
| Mondelēz International Inc. | — | 14.10 | 30.57 | — | — | |
| PepsiCo Inc. | 17.88 | 47.17 | 77.00 | — | — | |
| Philip Morris International Inc. | 11.93 | 6.64 | 20.46 | — | — | |
| P/FCFE, Sector | ||||||
| Food, Beverage & Tobacco | 20.54 | 16.95 | 29.54 | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Staples | 24.17 | 25.27 | 24.83 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,471,635,000 ÷ 1,040,636,235 = 1.41
4 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 59.10 ÷ 1.41 = 41.79
6 Click competitor name to see calculations.
The financial trajectory between 2019 and 2023 is characterized by a steady appreciation in share price, which rose from US$31.21 to US$59.10. This growth occurred alongside significant volatility in Free Cash Flow to Equity (FCFE) per share, leading to substantial fluctuations in the Price to FCFE (P/FCFE) valuation ratio.
- Share Price Movement
- A consistent upward trend is observed, with the share price increasing in four of the five years analyzed. Despite a marginal decline in 2021, the price ended the period at its highest point of US$59.10.
- FCFE per Share Performance
- The FCFE per share exhibited a non-linear pattern, peaking in 2023 at US$1.41. A notable contraction occurred in 2022, where the value dropped to a period low of US$0.65, representing a significant decrease from the US$1.04 recorded in 2021.
- P/FCFE Ratio Analysis
- The P/FCFE ratio remained relatively stable between 33.82 and 40.52 from 2019 through 2021. A sharp divergence occurred in 2022, with the ratio spiking to 76.56. This outlier was driven by the confluence of a rising share price and a simultaneous drop in FCFE per share. By 2023, the ratio normalized to 41.79, as the strong recovery of FCFE per share to US$1.41 offset the continued increase in market price.
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