Last Updated: 18 Sep 2024
Executive Summary
Celsius Holdings Inc. (CELH) is a leading manufacturer and distributor of calorie-burning functional fitness drinks. The company has experienced strong financial performance in recent years, with revenue and earnings growth outpacing the industry average. CELH's stock price has also performed well, outperforming the broader market.
Company Overview
CELH was founded in 2004 and is headquartered in Boca Raton, Florida. The company's products are sold in over 100,000 retail locations in the United States and internationally. CELH's target market is health-conscious consumers who are looking for a convenient and effective way to burn calories and improve their overall health.
Fundamental Analysis
CELH's financial performance has been strong in recent years. Revenue has grown at a compound annual growth rate (CAGR) of 25% over the past five years. Earnings per share (EPS) have also grown at a CAGR of 20% over the same period.
The company's profit margins are healthy and have been expanding in recent years. Gross profit margin is now 47%, and operating profit margin is 23%. CELH's return on equity (ROE) is also strong at 27%.
CELH's balance sheet is also strong. The company has a low level of debt and a high level of cash. This gives the company financial flexibility to invest in growth initiatives.
Technical Analysis
CELH's stock price has performed well in recent years. The stock has outperformed the broader market and has reached a new 52-week high.
The stock's technical indicators are also bullish. The relative strength index (RSI) is above 70, which indicates that the stock is overbought. The moving average convergence divergence (MACD) is also bullish, with the MACD line above the signal line.
Short Term Outlook
CELH's short-term outlook is positive. The company is expected to continue to benefit from strong demand for its products. The stock's technical indicators are also bullish, which suggests that the stock has further upside potential.
Long Term Outlook
CELH's long-term outlook is also positive. The company is well-positioned to benefit from the growing demand for healthy and functional beverages. The company's strong financial performance and healthy balance sheet give it the resources to invest in growth initiatives.
Analyst Recommendations
Analysts are bullish on CELH. The consensus analyst rating is "Buy." The average analyst target price is $49.73, which represents a potential upside of 43% from the current price.
Conclusion
CELH is a well-positioned company with a strong track record of financial performance. The company's products are in high demand, and the company has a strong balance sheet. CELH's stock is a good investment for both short-term and long-term investors.
