Stock (Symbol) |
Celsius (CELH) |
Stock Price |
$111 |
Sector |
Food & Necessities |
Data is as of |
August 26, 2022 |
Expected to Report |
November 9 |
Company Description |
![]() The Company’s core offerings include pre- and post-workout functional energy drinks, as well as protein bars. Its flagship brand is CELSIUS, which is a calorie-burning functional energy drink. It seeks to combine nutritional science with mainstream beverages by using its thermogenic (calorie-burning) MetaPlus without the artificial preservatives found in energy drinks or sodas. CELSIUS has no chemical preservatives, aspartame or high fructose corn syrup and is low in sodium. CELSIUS uses good-for-you ingredients and supplements such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. Its product line includes CELSIUS Originals, CELSIUS HEAT, CELSIUS BCAA +Energy, CELSIUS On-the-Go, and CELSIUS Sweetened with Stevia. CELSIUS ready-to drink products are packaged in a distinctive 12 ounce sleek. Source: Refinitiv |
Sharek’s Take |
![]() CELH has a proprietary calorie-burning formulation called MetaPlus, while being as natural as possible, without the artificial preservatives found in many energy drinks and sodas. Management claims drinking the product can help people lose weight. In a ten-week clinical study published in the Journal of International Society of Sports Nutrition, the group who drank one Celsius per day experienced 93% greater fat loss (Source: Celsius Investor Kit). The science has also been backed by six published university clinical studies (Ohio Research and University of Oklahoma). CELH drinks have no artificial preservatives, aspartame or high fructose corn syrup and very low sodium. The main line of CELH products are sweetened with sucralose, the sweetener found in Splenda. Other ingredients include green tea, ginger, calcium, chromium (which controls hunger), Vitamin B and Vitamin C, which work together to enact thermogenesis, a process that boosts the body’s metabolic rate resulting in calorie burn and energy. Last qtr highlights include:
CELH is expected to grow revenue from $314 million in 2021 to $619 million in 2022 and $928 million in 2023. And during the next five years, CELH is expected to grow its share of energy drink market from 3% to 6-7% (Source: Jefferies). The Energy Drink market was around $60 billion market worldwide in 2020, with Celsius management thinking the market could reach $84 billion by 2025 (Source: December 2020 Investor Presentation). CELH has great growth opportunity for the future but the stock is speculative with a P/E at 264. But profits are growing at a triple digit rate and the Estimated Long-Term Growth Rate of 56% is outstanding. CELH is the #1 ranked stock in my Aggressive Growth Portfolio. |
One Year Chart |
![]() The P/E of 264 seems high, but this is a young company that’s growing rapidly. Thus, I’m valuing the stock on a price-to-sales basis (more below). This P/E was 157 last qtr. CELH has an outstanding Est. LTG of 56% a year, down from 59% last qtr. Look at that triple-digit profit growth. And that’s expcted to continue into next qtr. |
Earnings Table |
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Celsius is the #1 brand driving category growth with 34% of the growth in the entire energy drink category. Walmart had 700% growth. The company is the #1 brand in fitness channels. Annual Profit Estimates all increased this qtr. Qtrly Profit Estimates are for 233%, 13%, 189%, and 175% growth the next 4 qtrs. Notice the 2QtrsOut estimate is low due to tough comparisons from the year-ago period. |
Fair Value |
![]() Current qtr: 2022 Fair Value: 2023 Fair Value: |
Bottom Line |
![]() This article ws fantastic. And I’m now bullish again on the company’s prospects. But the price-to-sales ratio is high, so I would be hesitant in buying more shares here. CELH ranks #1 in the Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio 1 of 17Conservative Stock Portfolio N/A |