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Monster Beverage Piotroski F-Score

: 8 (As of Today)
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Good Sign:

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

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

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

NAS:MNST' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 8
2
9

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

Monster Beverage Piotroski F-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Monster Beverage Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 8.00 6.00 8.00

Monster Beverage Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 6.00 5.00 8.00
Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Monster Beverage Piotroski F-Score Distribution

* The bar in red indicates where Monster Beverage's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep20) TTM:Last Year (Sep19) TTM:
Net Income was 254.954 + 278.835 + 311.369 + 347.654 = $1,193 Mil.
Cash Flow from Operations was 292.693 + 191.132 + 249.326 + 508.778 = $1,242 Mil.
Revenue was 1017.206 + 1062.097 + 1093.896 + 1246.362 = $4,420 Mil.
Gross Profit was 610.768 + 637.196 + 659.469 + 736.531 = $2,644 Mil.
Average Total Assets from the begining of this year (Sep19)
to the end of this year (Sep20) was
(5137.366 + 5150.352 + 4881.497 + 5193.813 + 5697.683) / 5 = $5212.1422 Mil.
Total Assets at the begining of this year (Sep19) was $5,137 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Current Assets was $2,826 Mil.
Total Current Liabilities was $774 Mil.		 Net Income was 239.107 + 261.485 + 292.473 + 298.923 = $1,092 Mil.

Revenue was 924.23 + 945.991 + 1104.045 + 1133.577 = $4,108 Mil.
Gross Profit was 552.202 + 573.532 + 661.283 + 673.002 = $2,460 Mil.
Average Total Assets from the begining of last year (Sep18)
to the end of last year (Sep19) was
(4871.359 + 4526.891 + 4655.851 + 5084.332 + 5137.366) / 5 = $4855.1598 Mil.
Total Assets at the begining of last year (Sep18) was $4,871 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Current Assets was $2,361 Mil.
Total Current Liabilities was $714 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. 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's current Net Income (TTM) was 1,193. ==> Positive ==> Score 1.

Question 2. 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's current Cash Flow from Operations (TTM) was 1,242. ==> Positive ==> Score 1.

Question 3. 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 (Sep19)
=1192.812/5137.366
=0.23218357

ROA (Last Year)=Net Income/Total Assets (Sep18)
=1091.988/4871.359
=0.22416496

Monster Beverage's return on assets of this year was 0.23218357. Monster Beverage's return on assets of last year was 0.22416496. ==> This year is higher. ==> Score 1.

Question 4. 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's current Net Income (TTM) was 1,193. Monster Beverage's current Cash Flow from Operations (TTM) was 1,242. ==> 1,242 > 1,193 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=0/5212.1422
=0

Gearing (Last Year: Sep19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep18 to Sep19
=0/4855.1598
=0

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

Question 6. 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: Sep20)=Total Current Assets/Total Current Liabilities
=2825.847/773.763
=3.65208339

Current Ratio (Last Year: Sep19)=Total Current Assets/Total Current Liabilities
=2360.76/714.216
=3.30538661

Monster Beverage's current ratio of this year was 3.65208339. Monster Beverage's current ratio of last year was 3.30538661. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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's number of shares in issue this year was 533.263. Monster Beverage's number of shares in issue last year was 548.422. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. 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: TTM)=Gross Profit/Revenue
=2643.964/4419.561
=0.59824132

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2460.019/4107.843
=0.59885906

Monster Beverage's gross margin of this year was 0.59824132. Monster Beverage's gross margin of last year was 0.59885906. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year 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 (Sep19)
=4419.561/5137.366
=0.86027762

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep18)
=4107.843/4871.359
=0.84326427

Monster Beverage's asset turnover of this year was 0.86027762. Monster Beverage's asset turnover of last year was 0.84326427. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+1+0+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

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

Monster Beverage  (NAS:MNST) Piotroski F-Score 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.

Monster Beverage Piotroski F-Score Related Terms

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