Hansen Natural Corporation [HANS]
Share Price : $28.27 (09/07/09)
Book Value: $4.72
Company Profile
Hansen Natural Corporation is a holding company which through its wholly owned subsidiaries develops, markets, sells and distributes “alternative” beverage drinks, including energy drinks, fruit juices and natural sodas.
The majority of Hansen’s sales come from it energy drinks, such as Monster Energy, which is already the second-largest energy drink in the U.S behind Red Bull. Hansen’s revenue for the fiscal year 2008 was $1,034 billion. Hansen currently employs about 900 employees.
Financial’s at a Glance
| 2004 | 2005 | 2006 | 2007 | 2008 | |
|---|---|---|---|---|---|
| Revenues $mil | 180 | 349 | 606 | 904 | 1,034 |
| Net Income $mil | 20 | 63 | 98 | 149 | 108 |
| Debt $mil | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow $mil | 19 | 53 | 74 | 131 | 193 |
| Return on Equity | 43.5% | 68.2% | 55.9% | 46.2% | 25.2% |
| Return on Assets | 31.4% | 51.1% | 41.5% | 35.0% | 16.5% | Gross Margin | 46.3% | 52.3% | 52.3% | 51.7% | 52.1% |
Growth
Over the last five years, Hansen Natural Corporation has grown revenues and earnings at a compounded annual rate of 56.4% and 74.4% respectively.
Competitors Analysis
Hansen Natural [HANS] has a market capitalization of $2.56 billion, Pepsico [PEP] has a $85.39 billion market capitalization and The Coca-Cola Company [KO] has a market capitalization of $112.30 billion.
| HANS | PEP | KO | |
|---|---|---|---|
| Revenues $mil | 1,034 | 43,251 | 31,944 |
| Net Income $mil | 108 | 5,142 | 5,807 |
| Cash $mil | 257 | 2,064 | 4,701 |
| Debt $mil | 0 | 7,858 | 2,781 |
| Free Cash Flow $mil | 193 | 4,553 | 5,603 |
| Gross Margin | 52.1% | 52.9% | 64.4% |
| Return on Equity | 25.2% | 34.8% | 27.5% |
| Return on Assets | 16.5% | 14.6% | 13.9% |
Valuation
We have estimated the intrinsic value of the Hansen Natural Corporation to be about $73 per share and Hansen Natural today (09/07/09) is trading at $28.27, this gives a discount of about 60%, thus representing a nice margin of safety.
Events
| Date | Event |
|---|---|
| August 3rd 2009 | Q2 2009 – Earnings Release |
Research Links
Company Website
2008 Annual Report
Q1 2009 Earnings Conference Call
Disclaimer
Information on this site is for educational purposes only, and should not be construed as investment advice. This is not a buy or sell recommendation. Information has been obtained from sources believed to be reliable and is provided without any warranties. All information is subject to change or correction without notice. The valuation price above is our estimate of the intrinsic value and is not a target price. The publisher may buy, sell or hold the company mentioned here. The publisher is not responsible for any errors or omissions.
