Celsius Shares Drop 20% Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy CELH?
Source: NASDAQ.COM
- Stock Decline: Celsius has seen its stock price drop over 20% in the last six trading days, currently trading at 16 times next year's projected earnings, indicating market concerns about its future growth prospects.
- Increased Market Competition: Costco's launch of Kirkland Signature energy drinks, while unlikely to have a major direct impact on Celsius, could divert some consumers, particularly in a price-sensitive market environment.
- Sales Growth Slowdown: Following the acquisition of Alani Nu, Celsius achieved revenue growth of 85%, 173%, and 117%, but is expected to see a slowdown to 132% growth in the current quarter, reflecting insufficient market confidence in its sustained growth.
- Attractive Valuation: Despite Celsius's strong growth trajectory, its current P/E ratio stands at 21 times, with a forward P/E of just 16 times projected earnings, indicating that its stock may be relatively cheap and could attract investor interest.
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Analyst Views on CELH
Wall Street analysts forecast CELH stock price to rise
17 Analyst Rating
14 Buy
2 Hold
1 Sell
Strong Buy
Current: 35.590
Low
45.00
Averages
62.85
High
80.00
Current: 35.590
Low
45.00
Averages
62.85
High
80.00
About CELH
Celsius Holdings, Inc. is engaged in the development, processing, marketing, sale, and distribution of functional energy drinks to a range of consumers. The Company's flagship asset, CELSIUS, is marketed as a lifestyle and energy drink. This product line comes in two versions: a ready-to-drink form and an on-the-go powder form. It also offers a new CELSIUS Essentials line, available in 16-ounce cans and a Hydration line of zero-sugar powders that are infused with electrolytes and are available in a variety of fruit-forward flavors. Celsius products are offered in retail channels across the United States, including conventional grocery, natural, convenience, fitness, mass market, vitamin specialty and e-commerce platforms. Its product's formulation includes ingredients and supplements such as green tea (EGCG), ginger (from the root), calcium, chromium, B vitamins and vitamin C. The Company's product portfolio also includes the health and wellness brand Alani Nu.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Celsius Holdings Shares Drop 21% Amid Market Challenges
- Increased Market Competition: Celsius Holdings' shares have plummeted 21% over the past six trading days, primarily due to Costco's launch of a new energy drink line, although analysts believe the market reaction is overdone as Celsius continues to gain market share.
- Sales Growth Recovery: Following the acquisition of Alani Nu, Celsius has reported revenue growth of 85%, 173%, and 117% over the past three quarters, with a projected 132% increase in the current quarter, indicating strong market demand and brand appeal.
- Profitability Improvement: Celsius has exceeded analyst earnings estimates in the last three quarters, with Q1 actual EPS at $0.47, surpassing expectations by 93%, demonstrating the company's ongoing enhancement in profitability.
- Valuation Attractiveness: Despite Celsius's nearly perfect growth trajectory, its current P/E ratio stands at just 21 times this year's earnings, with a projected 16 times for next year, indicating that its stock remains attractive in the current market environment.
See More
Celsius Shares Drop 20% Amid Market Challenges
- Stock Decline: Celsius has seen its stock price drop over 20% in the last six trading days, currently trading at 16 times next year's projected earnings, indicating market concerns about its future growth prospects.
- Increased Market Competition: Costco's launch of Kirkland Signature energy drinks, while unlikely to have a major direct impact on Celsius, could divert some consumers, particularly in a price-sensitive market environment.
- Sales Growth Slowdown: Following the acquisition of Alani Nu, Celsius achieved revenue growth of 85%, 173%, and 117%, but is expected to see a slowdown to 132% growth in the current quarter, reflecting insufficient market confidence in its sustained growth.
- Attractive Valuation: Despite Celsius's strong growth trajectory, its current P/E ratio stands at 21 times, with a forward P/E of just 16 times projected earnings, indicating that its stock may be relatively cheap and could attract investor interest.
See More
Celsius Reports Surge in Q4 Sales but Stock Plummets
- Significant Sales Growth: Celsius reported fourth-quarter revenue of $722 million, a 116% increase from $332.2 million year-over-year, indicating strong performance in the beverage market, although part of this growth was driven by acquisitions.
- Intensified Competitive Pressure: The launch of Costco's Kirkland Signature energy drink, priced 55% lower than Celsius, highlights the fierce competition in the beverage industry, posing a potential threat to Celsius's market share despite Costco accounting for only 11% of its total sales last year.
- Declining Profit Margins: Celsius's gross profit margin fell from 50.2% to 47.4% year-over-year, primarily due to increased integration and distribution costs associated with acquisitions, a trend that could impact future profitability and warrants close investor scrutiny.
- Valuation Risks Emerge: Despite Celsius's stock price dropping 49% from its 52-week high to around $34, the market still values it at a relatively high forward price-to-earnings ratio, suggesting that investor expectations for future growth may be overly optimistic.
See More
Celsius Holdings Shares Plummet Amid Competition
- Stock Plunge: Celsius Holdings' shares have fallen 49% from their 52-week high of $66.74, currently trading around $34, indicating market concerns about its growth prospects amid intensifying competition.
- Intensifying Competition: Costco's launch of the Kirkland Signature energy drink, priced 55% lower than Celsius, highlights competitive pressures in the beverage market, which could negatively impact Celsius's profit margins despite Costco accounting for only 11% of its total sales last year.
- Acquisition Impact: The company reported fourth-quarter revenue of $722 million, a 117% increase year-over-year, significantly driven by the acquisition of Alani Nu, which generated $370 million in net sales with a 136% year-over-year growth; however, integration costs led to a decline in gross margin to 47.4%.
- Valuation Risks: Despite Celsius's strong market positioning, its current forward P/E ratio in the twenties suggests that the market is overly optimistic about its growth potential, raising concerns about the risk-reward balance in an increasingly competitive environment.
See More
Celsius Stock Decline Highlights Costco's Influence on Businesses
- Celsius Holdings Stock Pressure: Celsius Holdings' stock is facing pressure this week as investors react to market developments.
- Costco's New Energy Drink: The launch of a low-cost energy drink by Costco Wholesale is raising concerns about its potential impact on the demand for Celsius products.
See More
Market Outlook Dims as Analysts Downgrade Key Stocks
- Oil Prices and Market Pressure: Rising oil prices and bond yields, coupled with Washington's negotiations with Iran, are creating significant challenges for the stock market, as futures indicate a lower open, making it difficult for investors to commit substantial capital in this environment.
- Qualcomm Downgrade: Bernstein downgraded Qualcomm from buy to hold, citing concerns that soaring memory prices are pressuring the smartphone market, indicating a loss of confidence in Qualcomm as Wall Street shifts preference towards Arm Holdings.
- Adobe Faces Competitive Pressure: William Blair downgraded Adobe from buy to hold, highlighting intense AI competition in its core Creative Cloud business, suggesting that Adobe's high valuation may be unsustainable amid declining earnings power.
- Tyson Foods Receives Buy Rating: Mizuho initiated coverage of Tyson Foods with a buy rating, noting that increased consumer demand for nutrient-rich diets will drive growth, while the company's heavy reinvestment over the past five years is expected to enhance profitability.
See More
Celsius Holdings Shares Drop 21% Amid Market Challenges
- Increased Market Competition: Celsius Holdings' shares have plummeted 21% over the past six trading days, primarily due to Costco's launch of a new energy drink line, although analysts believe the market reaction is overdone as Celsius continues to gain market share.
- Sales Growth Recovery: Following the acquisition of Alani Nu, Celsius has reported revenue growth of 85%, 173%, and 117% over the past three quarters, with a projected 132% increase in the current quarter, indicating strong market demand and brand appeal.
- Profitability Improvement: Celsius has exceeded analyst earnings estimates in the last three quarters, with Q1 actual EPS at $0.47, surpassing expectations by 93%, demonstrating the company's ongoing enhancement in profitability.
- Valuation Attractiveness: Despite Celsius's nearly perfect growth trajectory, its current P/E ratio stands at just 21 times this year's earnings, with a projected 16 times for next year, indicating that its stock remains attractive in the current market environment.
See More
Celsius Shares Drop 20% Amid Market Challenges
- Stock Decline: Celsius has seen its stock price drop over 20% in the last six trading days, currently trading at 16 times next year's projected earnings, indicating market concerns about its future growth prospects.
- Increased Market Competition: Costco's launch of Kirkland Signature energy drinks, while unlikely to have a major direct impact on Celsius, could divert some consumers, particularly in a price-sensitive market environment.
- Sales Growth Slowdown: Following the acquisition of Alani Nu, Celsius achieved revenue growth of 85%, 173%, and 117%, but is expected to see a slowdown to 132% growth in the current quarter, reflecting insufficient market confidence in its sustained growth.
- Attractive Valuation: Despite Celsius's strong growth trajectory, its current P/E ratio stands at 21 times, with a forward P/E of just 16 times projected earnings, indicating that its stock may be relatively cheap and could attract investor interest.
See More
Celsius Reports Surge in Q4 Sales but Stock Plummets
- Significant Sales Growth: Celsius reported fourth-quarter revenue of $722 million, a 116% increase from $332.2 million year-over-year, indicating strong performance in the beverage market, although part of this growth was driven by acquisitions.
- Intensified Competitive Pressure: The launch of Costco's Kirkland Signature energy drink, priced 55% lower than Celsius, highlights the fierce competition in the beverage industry, posing a potential threat to Celsius's market share despite Costco accounting for only 11% of its total sales last year.
- Declining Profit Margins: Celsius's gross profit margin fell from 50.2% to 47.4% year-over-year, primarily due to increased integration and distribution costs associated with acquisitions, a trend that could impact future profitability and warrants close investor scrutiny.
- Valuation Risks Emerge: Despite Celsius's stock price dropping 49% from its 52-week high to around $34, the market still values it at a relatively high forward price-to-earnings ratio, suggesting that investor expectations for future growth may be overly optimistic.
See More
Celsius Holdings Shares Plummet Amid Competition
- Stock Plunge: Celsius Holdings' shares have fallen 49% from their 52-week high of $66.74, currently trading around $34, indicating market concerns about its growth prospects amid intensifying competition.
- Intensifying Competition: Costco's launch of the Kirkland Signature energy drink, priced 55% lower than Celsius, highlights competitive pressures in the beverage market, which could negatively impact Celsius's profit margins despite Costco accounting for only 11% of its total sales last year.
- Acquisition Impact: The company reported fourth-quarter revenue of $722 million, a 117% increase year-over-year, significantly driven by the acquisition of Alani Nu, which generated $370 million in net sales with a 136% year-over-year growth; however, integration costs led to a decline in gross margin to 47.4%.
- Valuation Risks: Despite Celsius's strong market positioning, its current forward P/E ratio in the twenties suggests that the market is overly optimistic about its growth potential, raising concerns about the risk-reward balance in an increasingly competitive environment.
See More
Celsius Stock Decline Highlights Costco's Influence on Businesses
- Celsius Holdings Stock Pressure: Celsius Holdings' stock is facing pressure this week as investors react to market developments.
- Costco's New Energy Drink: The launch of a low-cost energy drink by Costco Wholesale is raising concerns about its potential impact on the demand for Celsius products.
See More
Market Outlook Dims as Analysts Downgrade Key Stocks
- Oil Prices and Market Pressure: Rising oil prices and bond yields, coupled with Washington's negotiations with Iran, are creating significant challenges for the stock market, as futures indicate a lower open, making it difficult for investors to commit substantial capital in this environment.
- Qualcomm Downgrade: Bernstein downgraded Qualcomm from buy to hold, citing concerns that soaring memory prices are pressuring the smartphone market, indicating a loss of confidence in Qualcomm as Wall Street shifts preference towards Arm Holdings.
- Adobe Faces Competitive Pressure: William Blair downgraded Adobe from buy to hold, highlighting intense AI competition in its core Creative Cloud business, suggesting that Adobe's high valuation may be unsustainable amid declining earnings power.
- Tyson Foods Receives Buy Rating: Mizuho initiated coverage of Tyson Foods with a buy rating, noting that increased consumer demand for nutrient-rich diets will drive growth, while the company's heavy reinvestment over the past five years is expected to enhance profitability.
See More
