MNST – Market expectations are for record-high Uniform ROA, but management may be concerned about supply, pricing, and growth

• Monster Beverage Corporation (MNST:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 33.5x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about supply chain issues, pricing strategy, and sales growth.

• Specifically, management may lack confidence in their ability to sustain retail market share gains in Germany, mitigate a decline in NOS sales, and maintain sales growth in Argentina. Furthermore, they may have concerns about share losses in the US, the impact of supply chain issues on sales and expenses, and their pricing strategy.