Celsius (CELH) Valuation Check After Strong Growth, New Partnerships and Rising Integration Concerns
Celsius Holdings (CELH) just posted a blowout Q3, with revenue doubling and market share jumping as its PepsiCo partnership and overseas push kicked in, yet the stock sank after investors focused on new integration headaches.
See our latest analysis for Celsius Holdings.
Even with the recent post earnings pullback and a 90 day share price return of minus 24.41 percent, Celsius still boasts a 54.63 percent year to date share price return and a 49.31 percent one year total shareholder return. This points to strong but increasingly scrutinised momentum.
If Celsius has you rethinking growth stories, this could be a good moment to hunt for other high potential names via high growth tech and AI stocks and see what stands out.
With revenue growth still ripping and the stock now trading at a steep discount to Wall Street targets, are investors staring at a mispriced growth engine, or is the market wisely pricing in every ounce of future expansion?
Most Popular Narrative Narrative: 34.8% Undervalued
With the narrative fair value sitting well above Celsius Holdings recent close of $42.06, the story leans toward a rich upside path built on aggressive expansion.
Expansion of distribution and increased activation through leading partners (PepsiCo in North America, Suntory internationally) is accelerating store count, new market entries, and international growth (27% YoY). This is providing exposure to broader health and wellness trends globally and underpinning expectations for long-term revenue expansion.
Curious how this growth surge translates into future margins, earnings power, and a premium multiple that still assumes upside, all under a sub 10% discount rate assumption?
Result: Fair Value of $64.52 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside hinges on controlling rising input and integration costs, and on avoiding any disruption in key distribution partnerships that could dent growth.
Find out about the key risks to this Celsius Holdings narrative.
Another Lens on Valuation
Looked at through its sales multiple, Celsius tells a very different story. The stock trades on a price to sales ratio of 5.1 times, versus a fair ratio of 3.7 times and a US Beverage industry average of 2.3 times, which flags real downside risk if sentiment cools.
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Celsius Holdings Narrative
If this view does not quite match your own or you would rather dig into the numbers yourself, you can build a custom narrative in under three minutes, starting with Do it your way.
A great starting point for your Celsius Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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