Celsius Holdings (CELH) AI Stock Analysis

• Market Cap: $9.16B
• Dividend Yield: N/A
• Average Volume (3M): 10.02M
• Price to Earnings (P/E): 80.3
• Beta (1Y): 0.72
• Revenue Growth: 2.85%
• EPS Growth: -43.53%
• Country: US
• Employees: 1,073
• Sector: Consumer Defensive
• Sector Strength: 93
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.44
• Shares Outstanding: 257,734,340
• 10 Day Avg. Volume: 9,434,400
• 30 Day Avg. Volume: 10,015,710
• PEG Ratio: 0.81
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.65
• Price to Cash Flow (P/CF): 149.70
• P/FCF Ratio: 244.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.63
• Price Target Upside: 14.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

Celsius Holdings is well-positioned for growth with strong financial performance and strategic acquisitions. However, high valuation and recent financial setbacks present a mixed outlook. The stock has upward momentum but may be nearing overbought territory.

Positive Factors

Acquisition

The acquisition of Alani Nu is seen as a catalyst for revenue growth and is expected to be beneficial for earnings per share.

Market Position

Alani Nu's focus on female demographics, particularly Gen Z and millennials, is anticipated to drive additional growth in the energy drink market.

Valuation

CELH's shares are trading below the peer average, suggesting an attractive valuation relative to its growth prospects.

Negative Factors

Financial Estimates

The 1Q Adjusted EBITDA estimate is being lowered from $88M to $65M due to lower topline forecast and higher SG&A as CELH reinvests.

Retail Sales

There is continued soft retail sales for the Celsius brand and consumer overlap between Celsius and Alani.

Sales Trends

Celsius sales were down mid-single digits for the latest and prior four-week periods.

Celsius Holdings Business Overview & Revenue Model

Company Description

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional drinks and liquid supplements in North America, Europe, Asia, and internationally. It offers various carbonated and non-carbonated functional energy drinks under the CELSIUS Originals name; dietary supplement in carbonated flavors, including apple jack'd, orangesicle, inferno punch, cherry lime, blueberry pomegranate, strawberry dragon fruit, tangerine grapefruit, and jackfruit under the CELSIUS HEAT name; and branched-chain amino acids functional energy drink that fuels muscle recovery under the CELSIUS BCCA+ENERGY name. The company also provides CELSIUS On-the-Go, a powdered form of the active ingredients in functional energy drinks in individual On-The-Go packets and canisters; and sparkling grapefruit, cucumber lime, and orange pomegranate, as well as pineapple coconut, watermelon berry, and strawberries and cream non-carbonated functional energy drinks under the CELSIUS Sweetened. It distributes its products through direct-to-store delivery distributors and direct to retailers, including supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, spas, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.

How the Company Makes Money

Celsius Holdings makes money primarily through the sale of its energy drinks in various channels, including retail, online, and through distributors. The company leverages a multi-channel distribution strategy, selling its products in grocery stores, convenience stores, fitness centers, and e-commerce platforms. Key revenue streams include direct sales to retailers and distributors, as well as direct-to-consumer sales via their online platforms. Significant partnerships with distribution networks and retailers enhance its market reach and visibility. The company's earnings are also bolstered by strategic marketing initiatives and collaborations that increase brand awareness and consumer engagement.

Celsius Holdings Financial Statement Overview

Summary

Celsius Holdings demonstrates strong financial performance with impressive revenue growth and operational efficiency. While the balance sheet is robust with low leverage and strong cash reserves, slight declines in net profit margins and return on equity suggest some areas of concern.

Income Statement

Celsius Holdings has shown impressive revenue growth, with total revenue increasing from $653.6 million in 2022 to $1.36 billion in 2024. The gross profit margin is strong at approximately 50.2% in 2024, indicating effective cost management. However, the net profit margin has slightly decreased from around 17.2% in 2023 to 10.7% in 2024, which may suggest increased expenses or investment in growth. Despite this, the company's EBIT and EBITDA margins are solid, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy equity position with a debt-to-equity ratio of approximately 0.02, indicating low financial leverage. The equity ratio is high at about 69.3%, reflecting a strong reliance on equity financing. Return on equity decreased to 11.8% in 2024 from 20.8% in 2023, highlighting potential challenges in maximizing shareholder returns. Overall, the balance sheet remains robust with significant cash reserves.

Cash Flow

Celsius Holdings has demonstrated strong free cash flow growth with free cash flow increasing from $99.9 million in 2022 to $239.5 million in 2024. The operating cash flow to net income ratio is healthy, indicating that the company effectively converts its earnings into cash. Free cash flow to net income ratio reflects a positive trend, suggesting efficient capital expenditure management. However, the consistent negative investing cash flow might indicate significant reinvestment in operations or growth initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.36B	1.32B	653.60M	314.27M	130.73M
	Gross Profit
680.21M	633.14M	270.87M	128.17M	60.97M
	EBIT
155.73M	266.37M	-157.80M	-4.09M	7.91M
	EBITDA
202.32M	269.59M	-155.88M	-2.79M	11.73M
	Net Income Common Stockholders
145.07M	226.80M	-187.28M	3.94M	8.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
890.19M	755.98M	614.16M	16.25M	43.25M
	Total Assets
1.77B	1.54B	1.22B	314.02M	131.29M
	Total Debt
20.25M	2.19M	1.22M	1.37M	1.12M
	Net Debt
-869.94M	-753.79M	-612.94M	-14.88M	-42.12M
	Total Liabilities
542.46M	447.87M	357.49M	96.97M	26.96M
	Stockholders Equity
1.22B	1.09B	864.58M	217.05M	104.33M
Cash Flow		Free Cash Flow
239.51M	123.78M	99.92M	-99.74M	2.82M
	Operating Cash Flow
262.90M	141.22M	108.18M	-96.59M	3.40M
	Investing Cash Flow
-101.73M	-14.20M	-5.67M	-1.26M	757.26K
	Financing Cash Flow
-25.97M	-25.22M	534.11M	71.40M	15.57M

Celsius Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CELH, the sentiment is Positive. The current price of 35.54 is above the 20-day moving average (MA) of 32.31, above the 50-day MA of 27.92, and above the 200-day MA of 34.20, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CELH.

Celsius Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CELH	76 Outperform	$9.16B	80.33	12.54%	―	2.85%	-43.53%
MNST	76 Outperform	$55.55B	38.47	21.27%	―	4.94%	-4.13%
FIZZ	69 Neutral	$4.00B	21.53	40.81%	―	0.34%	9.48%
COCO	64 Neutral	$1.59B	29.55	24.26%	―	4.54%	19.37%
Sector *	62 Neutral	$20.22B	14.00	-15.99%	3.22%	1.17%	3.32%
ZVIA	52 Neutral	$152.90M	―	-25.77%	―	-6.83%	19.09%
OTLY	49 Neutral	$266.66M	―	-91.64%	―	4.71%	52.27%

Celsius Holdings Corporate Events

Celsius Holdings Acquires Alani Nutrition for $1.8 Billion

On April 1, 2025, Celsius Holdings completed its acquisition of Alani Nutrition LLC for $1.8 billion. This acquisition strengthens Celsius’ position in the functional beverage market, allowing it to expand its portfolio and reach more consumers seeking healthier, zero-sugar alternatives. The acquisition includes a mix of cash and stock, with Alani Nu operating within Celsius and its key leadership continuing as advisors. This strategic move is expected to enhance Celsius’ growth in the energy drink category and broaden its consumer base.

Celsius Holdings Announces Acquisition of Alani Nutrition

On February 20, 2025, Celsius Holdings, Inc. announced its intention to acquire Alani Nutrition LLC by entering into a Membership Interest Purchase Agreement. The transaction is expected to close as early as April 2025, following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act on March 10, 2025, which was one of the conditions for closing the deal.

Celsius Holdings Appoints Eric Hanson as President

On March 3, 2025, Celsius Holdings announced the appointment of Eric Hanson as President and Chief Operating Officer, effective March 24, 2025. With nearly 30 years of experience in the food and beverage sector, Hanson previously held senior roles at PepsiCo. His compensation package includes a base salary of $700,000, performance-based stock units, and additional benefits, indicating a strategic move to strengthen the company’s leadership and operational capabilities.

Celsius Holdings Highlights Growth Strategy at Conference

On February 21, 2025, Celsius Holdings presented at the Consumer Analyst Group of New York Conference, highlighting its growth strategy and innovative capabilities in the functional beverage sector. The company, which is known for its strong cash generation and market disruption, anticipates accelerated growth through its pending acquisition of Alani Nutrition, further positioning itself as a leader in the expanding market.

Celsius Holdings Announces Acquisition of Alani Nutrition

On February 20, 2025, Celsius Holdings announced its entry into a definitive agreement to acquire Alani Nutrition LLC for $1.8 billion, combining two growing energy brands to create a leading functional lifestyle platform. The acquisition aims to capitalize on the consumer shift towards wellness-focused products, enhancing Celsius’ market position and providing substantial growth opportunities. The transaction is expected to close in the second quarter of 2025, pending regulatory approvals, and is anticipated to be accretive to cash EPS in the first year, with significant synergies projected.

Celsius Holdings Settles Derivative Actions with Reforms

On December 2, 2024, Celsius Holdings, Inc. entered into a Stipulation and Agreement of Settlement to resolve three related stockholder derivative actions. The Eighth Judicial District Court in Clark County, Nevada, granted preliminary approval on January 24, 2025, for the settlement, which includes corporate governance reforms and payment of $987,500 for plaintiffs’ attorneys’ fees and expenses. A hearing for final approval is scheduled for March 27, 2025, with stockholders required to submit any objections by February 25, 2025.