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Monster Beverage Corp (NAS:MNST)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Monster Beverage Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

MNST' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 8

2
9

During the past 13 years, the highest Piotroski F-Score of Monster Beverage Corp was 9. The lowest was 2. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 95.25 + 76.106 + 92.187 + 106.873 = $370 Mil.
Cash Flow from Operations was 136.402 + 66.199 + 176.114 + 53.827 = $433 Mil.
Revenue was 536.129 + 540.849 + 590.422 + 630.934 = $2,298 Mil.
Gross Profit was 286.818 + 277.161 + 307.47 + 336.262 = $1,208 Mil.
Total Assets at the begining of this year (Mar13) was $1,147 Mil.
Total Assets was $1,594 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $1,355 Mil.
Total Current Liabilities was $380 Mil.
Net Income was 63.496 + 67.983 + 86.142 + 109.795 = $327 Mil.

Revenue was 484.223 + 471.517 + 541.94 + 592.64 = $2,090 Mil.
Gross Profit was 252.039 + 243.888 + 273.592 + 307.008 = $1,077 Mil.
Total Assets at the begining of last year (Mar12) was $1,471 Mil.
Total Assets was $1,147 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $937 Mil.
Total Current Liabilities was $330 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Monster Beverage Corp's current net income was 370. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Monster Beverage Corp's current cash flow from operations was 433. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Mar13)
=370.416/1147.372
=0.32283863

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=327.416/1470.745
=0.22261915

Monster Beverage Corp's return on assets of this year was 0.32283863. Monster Beverage Corp's return on assets of last year was 0.22261915. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Monster Beverage Corp's current net income was 370. Monster Beverage Corp's current cash flow from operations was 433. ==> 433 > 370 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/1593.583
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/1147.372
=0

Monster Beverage Corp's gearing of this year was 0. Monster Beverage Corp's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=1355.213/380.366
=3.56291835

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=936.699/329.766
=2.84049599

Monster Beverage Corp's current ratio of this year was 3.56291835. Monster Beverage Corp's current ratio of last year was 2.84049599. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Monster Beverage Corp's number of shares in issue this year was 173.7. Monster Beverage Corp's number of shares in issue last year was 172.6. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=1207.711/2298.334
=0.52547236

Gross Margin (Last Year)=Gross Profit/Revenue
=1076.527/2090.32
=0.51500584

Monster Beverage Corp's gross margin of this year was 0.52547236. Monster Beverage Corp's gross margin of last year was 0.51500584. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Mar13)
=2298.334/1147.372
=2.00312889

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=2090.32/1470.745
=1.42126609

Monster Beverage Corp's asset turnover of this year was 2.00312889. Monster Beverage Corp's asset turnover of last year was 1.42126609. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Monster Beverage Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Monster Beverage Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1100010001
Q4 0000101101
Q5 1111111111
Q6 1110010001
Q7 0000111011
Q8 1100110101
Q9 1100001001
F-score 7743676549

Monster Beverage Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0111000011
Q4 1100000111
Q5 1111111111
Q6 0000000011
Q7 1111111110
Q8 1110000111
Q9 0101000111
F-score 6866444798
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