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Celsius Holdings (CELH)
NASDAQ:CELH
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Celsius Holdings
(NASDAQ:CELH)74Outperform
Positive Factors
Acquisition
The proposed acquisition of Alani Nu is seen as a strategic fit, likely to enhance growth and complement Celsius's existing brand.
Financial Performance
Celsius Holdings reported 4Q24 revenue above consensus, indicating strong business performance.
Negative Factors
Brand Differentiation
There is significant consumer overlap between Celsius and Alani, with approximately 25% household overlap, which could limit brand differentiation.
Celsius Holdings (CELH) vs. S&P 500 (SPY)
Market Cap
$6.09B
Dividend YieldN/A
Average Volume (3M)12.40M
Price to Earnings (P/E)58.5
Beta (1Y)1.32
Revenue Growth2.85%
EPS Growth-43.53%
CountryUS
Employees765
SectorConsumer Defensive
Sector Strength73
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.44
Shares Outstanding235,129,730
10 Day Avg. Volume21,279,580
30 Day Avg. Volume12,395,321
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)N/A
Price to Sales (P/S)4.40
Price to Cash Flow (P/CF)116.50
P/FCF Ratio190.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.27Price Target Upside43.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Celsius Holdings Business Overview & Revenue Model
Company DescriptionCelsius Holdings, Inc. engages in the development, marketing, sale, and distribution of calorie-burning beverages. It offers flavors including grapefruit, cucumber lime, orange pomegranate, pineapple coconut, watermelon berry, and strawberries and cream. The company was founded in April 2004 and is headquartered in Boca Raton, FL.
How the Company Makes MoneyCelsius 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.85
Very Positive
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.78
Positive
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.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.37B | 1.36B | 1.32B | 653.60M | 314.27M | 130.73M | Gross Profit |
| 676.03M | 680.21M | 633.14M | 270.87M | 128.17M | 60.97M | EBIT |
| 233.17M | 155.73M | 266.37M | -157.80M | -4.09M | 7.91M | EBITDA |
| 239.16M | 202.32M | 269.59M | -157.80M | -2.79M | 9.52M | Net Income Common Stockholders |
| 203.03M | 145.07M | 226.80M | -187.28M | 3.94M | 8.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 890.19M | 890.19M | 755.98M | 614.16M | 16.25M | 43.25M | Total Assets |
| 1.77B | 1.77B | 1.54B | 1.22B | 314.02M | 131.29M | Total Debt |
| 20.25M | 20.25M | 2.19M | 1.22M | 1.37M | 1.12M | Net Debt |
| -869.94M | -869.94M | -753.79M | -612.94M | -14.88M | -42.12M | Total Liabilities |
| 542.46M | 542.46M | 447.87M | 357.49M | 96.97M | 26.96M | Stockholders Equity |
| 1.22B | 1.22B | 1.09B | 864.58M | 217.05M | 104.33M |
| Cash Flow | Free Cash Flow | ||||
| 169.67M | 239.51M | 123.78M | 99.92M | -99.74M | 2.82M | Operating Cash Flow |
| 192.40M | 262.90M | 141.22M | 108.18M | -96.59M | 3.40M | Investing Cash Flow |
| -25.73M | -101.73M | -14.20M | -5.67M | -1.26M | 757.26K | Financing Cash Flow |
| -24.74M | -25.97M | -25.22M | 534.11M | 71.40M | 15.57M |
Celsius Holdings Technical Analysis
Negative
25.90
Price Trends
25.94
Negative
28.02
Negative
39.65
Negative
Market Momentum
0.33
Negative
50.49
Neutral
20.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CELH, the sentiment is Negative. The current price of 25.9 is above the 20-day moving average (MA) of 24.77, below the 50-day MA of 25.94, and below the 200-day MA of 39.65, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CELH.
Celsius Holdings Risk Analysis
Celsius Holdings disclosed 40 risk factors in its most recent earnings report. Celsius Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Celsius Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $301.89B | 28.52 | 42.77% | 2.68% | 1.96% | -0.45% | |
76 Outperform | $53.15B | 37.18 | 25.33% | ― | 4.94% | -4.13% | |
76 Outperform | $45.48B | 31.83 | 5.94% | 2.61% | 3.62% | -32.23% | |
74 Outperform | $6.09B | 58.54 | 11.85% | ― | 2.85% | -43.53% | |
70 Outperform | $3.77B | 20.28 | 31.59% | ― | 0.73% | 12.96% | |
69 Neutral | $211.47B | 22.18 | 53.09% | 3.42% | 0.42% | 5.77% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% |
* Consumer Defensive Sector Average
Performance Comparison
CELH
Celsius Holdings
25.90
-60.83
-70.14%
KO
Coca-Cola
70.19
12.43
21.52%
KDP
Keurig Dr Pepper
33.60
5.28
18.64%
MNST
Monster Beverage
54.82
-3.07
-5.30%
FIZZ
National Beverage
40.22
-8.17
-16.88%
PEP
PepsiCo
154.19
-4.02
-2.54%
Celsius Holdings Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 1.45% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant achievements such as record revenue, volume growth, and strategic acquisitions, indicating positive momentum for Celsius. However, these are offset by financial setbacks in the fourth quarter, including revenue decline, increased expenses, and a net loss, which create a mixed picture of the company's financial health.Highlights
Record Revenue Achievement
Celsius reported record 2024 revenue of $1.36 billion, representing a 3% year-over-year increase in revenue and a 22% increase in retail sales compared to 2023.
Significant Volume Growth
Celsius delivered strong 22% volume growth year-over-year compared to the total energy category, which only grew 5%.
Expansion of Product Lines and Distribution
Celsius introduced new products and expanded distribution by 37% year-over-year, reaching over 241,000 outlets in the United States.
Strategic Acquisition of Alani Nu
Celsius entered into a definitive agreement to acquire Alani Nu for $1.8 billion, aiming to enhance its platform with a complementary, profitable, better-for-you lifestyle energy brand.
Improved Gross Margin
Quarterly gross margin improved 240 basis points to 50.2% due to lower freight costs and savings on raw materials.
Lowlights
Fourth Quarter Financial Decline
Revenue and adjusted EBITDA each declined 4% in the fourth quarter compared to the previous year, impacted by one-time costs and promotional allowances.
Increased SG&A Expenses
SG&A in the fourth quarter increased by 73% to $185 million, primarily due to accrued legal expenses and one-time restructuring charges.
Net Loss in Fourth Quarter
Celsius recognized a net loss of approximately $18.9 million in the fourth quarter, down from a net gain of $50.1 million the previous year.
Decline in Full-Year Income
Full-year income was approximately $145 million, a 36% decline compared to the previous year.
Company Guidance
During the Celsius Holdings, Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call, the company reported record annual revenue of $1.36 billion, marking a 3% increase year-over-year, with a notable 22% rise in retail sales compared to 2023. The company also highlighted a 22% volume growth in the energy drink category, significantly outperforming the overall category growth of 5%. Celsius increased its distribution points by 37% year-over-year, achieving an ACV of 98.7%, and expanded its presence to over 241,000 outlets in the U.S. The company contributed 30% to the energy drink category's growth and received the 2024 7-Eleven Immediate Consumption Execution Award. Additionally, Celsius announced its agreement to acquire Alani Nu for $1.8 billion, aiming to create a leading better-for-you functional lifestyle platform with projected combined sales of $2 billion in 2024. The acquisition is expected to be cash and EPS accretive in the first year, with anticipated cost synergies of $50 million over two years.Celsius Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Celsius Holdings Appoints Eric Hanson as President
Positive
Mar 3, 2025
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.
M&A TransactionsBusiness Operations and Strategy
Celsius Holdings Highlights Growth Strategy at Conference
Positive
Feb 21, 2025
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.
M&A TransactionsBusiness Operations and Strategy
Celsius Holdings Announces Acquisition of Alani Nutrition
Positive
Feb 20, 2025
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.
Legal Proceedings
Celsius Holdings Settles Derivative Actions with Reforms
Neutral
Feb 7, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.