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Monster is a classic "capital lite" business model with a large and growing addressable market, and management has been extremely successful reinvesting the sub
by eigenvalue 3y ago
Monster is a classic "capital lite" business model with a large and growing addressable market, and management has been extremely successful reinvesting the substantial free cash flow generated by the business into organic growth and acquisitions. There are really only a handful of businesses of that calibur in the entire public market. Of course, people have realized all of this by this point, so Monster stock trades a large multiple of earnings (nearly 40x), while prospective growth will never match what they did historically from inception, otherwise they'd end up the largest company in the world after not too long!
- joecool1029 3y agoI mean, look at private ones like AriZona iced tea that still sells cans for $0.99 and the owners are multi-billionaires.
- DaveExeter 3y agoWhat do think the manufacturing cost for a can of it is? Maybe ten cents? It's a high-margin business!
- zappb 3y agoIt’s too bad that most business owners care more about power than profits. Otherwise, we’d see far more occurrences of successful businesses like this.