Monster BeverageLTS:0K34 +0.64%98 Operating Margin % is 31.02% as of Mar. 2026, which is 6% below its 10-year median of 32.92. GuruFocus rates LTS:0K34 with a GF Score™ of 98/100 and a GF Value™ of $76.64 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 116 Beverages - Non-Alcoholic companies, Monster Beverage ranks better than 95.69% on this metric.
Monster Beverage Corp operating margin has been in a 5-year decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for Monster Beverage's Operating Margin % or its related term are showing as below:
LTS:0K34'
s Operating Margin % Range Over the Past 10 Years
Min: 25.11 Med: 32.92 Max: 35.59
Current: 29.34
LTS:0K34's Operating Margin % is ranked better than 95.69% of 116
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 8.975
vs LTS:0K34: 29.34
Monster Beverage's 5-Year Average Operating Margin % Growth Rate was -4.40% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Monster Beverage Operating Margin % Related Terms
Monster Beverage Operating Margin % Historical Data
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The historical data trend for Monster Beverage's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0K34 vs KDP, COCSF, COKE: Operating Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, Monster Beverage's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Monster Beverage Operating Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Monster Beverage's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Monster Beverage's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Monster Beverage's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Monster Beverage (LTS:0K34) has a Operating Margin % of 31.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Monster Beverage and its competitors. This is near median its historical median of 32.92. Over the past decade, Monster Beverage's Operating Margin % has ranged from 25.11 to 35.59. According to the industry distribution chart, Monster Beverage ranks #5 out of 116 companies in the Beverages - Non-Alcoholic industry, placing it in the top 4.3%.
Is Monster Beverage's Operating Margin % too high?
Monster Beverage's current Operating Margin % of 31.02% is near median its 10-year median of 32.92. Over the past 10 years, this metric has ranged from a low of 25.11 to a high of 35.59. The Beverages - Non-Alcoholic industry median Operating Margin % is 8.98. Monster Beverage's value of 31.02% is 245.6% above this industry median. Based on the distribution chart, Monster Beverage ranks #5 out of 116 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Monster Beverage has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Monster Beverage's Operating Margin % compare to KDP and COCSF?
According to the Beverages - Non-Alcoholic industry distribution chart, Monster Beverage ranks #5 out of 116 companies for Operating Margin %. This places Monster Beverage in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.98. Monster Beverage's value of 31.02% is 245.6% above this benchmark. Historically, Monster Beverage's own Operating Margin % has ranged from 25.11 to 35.59 over the past decade. While the company's 10-year median is 32.92 vs. the industry median of 8.98, Monster Beverage has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Beverages - Non-Alcoholic company?
The median Operating Margin % among Beverages - Non-Alcoholic companies is 8.98, based on 116 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Monster Beverage's current Operating Margin % of 31.02% is 245.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Monster Beverage and its competitors. For the Beverages - Non-Alcoholic industry, the median Operating Margin % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Monster Beverage's current Operating Margin % is 31.02%, which is near median its own 10-year median of 32.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Monster Beverage stock overvalued right now?
Based on GuruFocus' analysis, Monster Beverage (LTS:0K34) is currently considered Modestly Overvalued. The stock's GF Value™ is $76.64, compared to a current price of $95.56 — trading 24.7% above its estimated fair value. The current Operating Margin % is 31.02%, which is near median its 10-year median of 32.92 and 245.6% above the Beverages - Non-Alcoholic industry median of 8.98. Monster Beverage's overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Monster Beverage (LTS:0K34), the current Operating Margin % is 31.02% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Monster Beverage (LTS:0K34) Overvalued in 2026?
Based on GuruFocus' analysis, Monster Beverage stock appears to be overvalued.
The current stock price of $95.56 is trading 24.7% above its estimated GF Value™ of $76.64.
GuruFocus considers Monster Beverage to be Modestly Overvalued.
Key valuation signals for LTS:0K34:
Operating Margin %: 31.02% (near median its 10-year median of 32.92)
GF Value™: $76.64 vs. price of $95.56 (24.7% above fair value)
Industry Position: 245.6% above the Beverages - Non-Alcoholic median (#5 of 116)
No single metric tells the full story. See the LTS:0K34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Monster Beverage is a leader in the energy drink category within the nonalcoholic ready-to-drink beverage market, generating two-thirds of revenue in the US and Canada. The well-known Monster trademark includes brands such as Monster Energy, Monster Ultra, Java Monster, and Juice Monster. The firm also owns other energy drink brands, such as Reign, NOS, Burn, Bang, and Mother, and brews and distributes beers and flavored malt beverages following the acquisition of a craft brewer in 2022. Monster controls branding and innovation but outsources beverage manufacturing and packaging to co-packers and finished goods distribution to bottlers in the global Coca-Cola system (pursuant to a 20-year agreement inked in 2015). Coke is the largest shareholder of Monster, owning a 20% stake.
98GF Score
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