Celsius Holdings, Inc. (CELH) | Investment Case

1. Company Snapshot

1.a. Company Description

Celsius Holdings, Inc.develops, processes, markets, distributes, and sells functional drinks and liquid supplements in North America, Europe, Asia, and internationally.It offers various carbonated and non-carbonated functional energy drinks under the CELSIUS Originals name; dietary supplement in carbonated flavors, including apple jack'd, orangesicle, inferno punch, cherry lime, blueberry pomegranate, strawberry dragon fruit, tangerine grapefruit, and jackfruit under the CELSIUS HEAT name; and branched-chain amino acids functional energy drink that fuels muscle recovery under the CELSIUS BCCA+ENERGY name.

The company also provides CELSIUS On-the-Go, a powdered form of the active ingredients in functional energy drinks in individual On-The-Go packets and canisters; and sparkling grapefruit, cucumber lime, and orange pomegranate, as well as pineapple coconut, watermelon berry, and strawberries and cream non-carbonated functional energy drinks under the CELSIUS Sweetened.It distributes its products through direct-to-store delivery distributors and direct to retailers, including supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, spas, gyms, the military, and e-commerce websites.The company was formerly known as Vector Ventures, Inc.

and changed its name to Celsius Holdings, Inc.in January 2007.Celsius Holdings, Inc.

was founded in 2004 and is headquartered in Boca Raton, Florida.

Show Full description

1.b. Last Insights on CELH

Celsius Holdings' recent performance was negatively impacted by integration costs and transition noise related to its distributor termination charge of $247 million, as it transitions into PepsiCo's distribution network. Despite strong Q3 sales growth and solid profits, with revenue surging 173% and adjusted EPS of $0.42, beating estimates. The company's Alani Nu integration is accelerating, contributing to its growth. However, the transition process and associated costs have raised concerns among investors. (Source: Q3 2025 Earnings Call Transcript, Celsius Holdings Posts 173% Revenue Surge)

1.c. Company Highlights

Last Price	42.06
Change Percentage	-1.41%
Open	42.7
Previous Close	42.66
Market Cap ( Millions)	10844
Volume	4303489
Year High	66.74
Year Low	21.1
M A 50	52.87
M A 200	45.06

FCF Yield	4.83%
Dividend Yield	0.00%
ROE	3.41%
Debt / Equity	29.07%
Net Debt / EBIDTA	42.83%
Price To Book	3.34
Price Earnings Ratio	153.64
Price To FCF	20.71
Price To sales	5.1
EV / EBITDA	84.09

2. Celsius Holdings' Q3 2025 Earnings: A Strong Performance

Celsius Holdings reported a robust financial performance in Q3 2025, with consolidated revenue reaching approximately $725 million, representing a 173% year-over-year increase. The company's gross margin expanded to 51.3% from 46% in the same quarter last year, driven by favorable product mix, lower net portfolio promotional spend, and pack mix. Earnings per share (EPS) came in at $0.42, significantly beating estimates of $0.28. The strong EPS performance was a notable highlight, underscoring the company's ability to deliver on its growth trajectory.

Publication Date: Nov -10

                                    📋 Highlights
                                    Revenue Surge:
                                                Consolidated revenue hit $725 million, surging 173% YoY.
Market Share Growth:
                                                Portfolio captured over 20% of U.S. energy drink sales in tracked channels, up 31% YoY.
Brand Performance:
                                                Alani Nu sales skyrocketed 115% YoY; Rockstar Energy added $18 million in first-month revenue.
Gross Margin Expansion:
                                                Margins climbed to 51.3% from 46% YoY, driven by inventory optimization and lower promotions.
Strategic Acquisitions:
                                                Rockstar Energy acquisition and Alani Nu integration added $5 billion in combined retail sales in Q3.

                                

Revenue Growth Drivers

The revenue growth was primarily driven by the Celsius brand's 13% U.S. scanner growth rate, Alani Nu's nearly doubling of revenue, and the addition of Rockstar Energy, which contributed $18 million in revenue in its first month under Celsius ownership. As John Fieldly noted, "We're excited about the 13% growth rate at the register, driven by our Live Fit Go campaign and increased trial and repeat purchase." This growth momentum is expected to continue, with analysts estimating next year's revenue growth at 31.8%.

Valuation Metrics

To understand what's priced into Celsius Holdings' stock, we can examine its valuation metrics. The company trades at a P/E Ratio of 166.69, P/B Ratio of 7.58, and P/S Ratio of 5.04. The EV/EBITDA ratio stands at 97.33, indicating a relatively high valuation. While the ROE is 3.78%, the ROIC is relatively low at 0.26%. These metrics suggest that the market is pricing in significant growth expectations, which the company's recent performance and guidance seem to support.

Operational Highlights and Future Outlook

The company has made significant investments in its people and culture, including key appointments to its leadership team. Celsius Holdings is also focused on integrating its recent acquisitions, with plans to optimize the Rockstar Energy brand and drive growth in Alani Nu. As the company navigates the complexities of its expanded portfolio, it is well-positioned to capitalize on the growing demand for functional, better-for-you energy drinks. With a strong balance sheet and cash position, Celsius Holdings is poised to fund future growth initiatives and deliver on its growth trajectory.

3. NewsRoom

Celsius Holdings, Inc. (CELH) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

Why Celsius Stock Is Starting to Look Like a Screaming Buy Right Now

Dec -03

Source: 247wallst.com

Celsius Holdings Highlights 2025 Execution Progress Ahead of Morgan Stanley Global Consumer & Retail Conference

Dec -03

Source: businesswire.com

Celsius Expects A Noisy Q4 But Will Still Grow Rapidly In 2026

Dec -03

Source: seekingalpha.com

Contrasting Celsius (NASDAQ:CELH) and TDH (NASDAQ:PETZ)

Dec -02

Source: defenseworld.net

Celsius Holdings Posts 51.3% Gross Margin in Q3: Is It Sustainable?

Dec -01

Source: zacks.com

Creative Planning Grows Position in Celsius Holdings Inc. $CELH

Nov -27

Source: defenseworld.net

Exclusive Release of Trump Vodka Added to NobleCon21 Experiential Kickoff

Nov -26

Source: feeds.newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.96%)

6. Segments

Pepsi

Expected Growth: 10.95%

Pepsi's partnership with Celsius Holdings, Inc. drives growth through increased distribution channels, leveraging Celsius's popularity in the fitness and wellness space. Additionally, Pepsi's brand recognition and marketing muscle support Celsius's product expansion, while Celsius's innovative products and flavors attract a younger demographic, contributing to the 10.95% growth.

All Other

Expected Growth: 10.95%

Celsius Holdings' 'All Other' segment growth of 10.95% is driven by increasing demand for its fitness and wellness products, expansion into new distribution channels, and strategic partnerships. Additionally, the company's focus on e-commerce and digital marketing has contributed to the segment's growth, as well as the rising popularity of healthy beverages and supplements.

Costco

Expected Growth: 10.78%

Costco's 10.78% growth is driven by increasing demand for healthy beverages, expanding distribution channels, and strategic partnerships. Celsius' unique positioning as a fitness-focused energy drink resonates with Costco's health-conscious customer base, leading to strong sales. Additionally, the warehouse club's efficient supply chain and logistics capabilities enable Celsius to reach a broader audience, contributing to the segment's rapid growth.

Amazon

Expected Growth: 11.4%

Amazon's 11.4% growth is driven by increasing adoption of e-commerce, expanding product offerings, and improving logistics. Strong brand recognition, customer loyalty, and strategic acquisitions also contribute to growth. Additionally, Amazon Web Services (AWS) continues to dominate the cloud computing market, further fueling revenue growth.

7. Detailed Products

Celsius Energy Drinks

A line of energy drinks that provide a boost of energy and mental clarity, available in various flavors

Celsius HEAT

A high-energy drink designed for fitness enthusiasts and athletes, providing a strong energy boost and mental focus

Celsius On-The-Go

A line of energy drinks in a convenient, on-the-go packaging, perfect for busy lifestyles

Celsius Fitness Drinks

A line of fitness-focused drinks that provide a boost of energy and support muscle recovery

8. Celsius Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Celsius Holdings, Inc. faces moderate threat from substitutes as consumers have limited options for healthy and functional beverages, but the company's unique product offerings and brand loyalty mitigate this threat.

Bargaining Power Of Customers

Celsius Holdings, Inc. has a diverse customer base, and no single customer accounts for a significant portion of its revenue, reducing the bargaining power of customers.

Bargaining Power Of Suppliers

Celsius Holdings, Inc. relies on a few key suppliers for its ingredients and packaging, but the company's scale and long-term contracts mitigate the bargaining power of suppliers.

Threat Of New Entrants

The functional beverage market is highly competitive, and new entrants can easily enter the market, posing a significant threat to Celsius Holdings, Inc.'s market share.

Intensity Of Rivalry

The functional beverage market is highly competitive, with many established players and new entrants, leading to intense rivalry and pricing pressure for Celsius Holdings, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.20%
Debt Cost	13.55%
Equity Weight	99.80%
Equity Cost	13.55%
WACC	13.55%
Leverage	0.20%

11. Quality Control: Celsius Holdings, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Albertsons

A-Score: 6.0/10

Value: 7.2

Growth: 5.4

Quality: 3.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.3

1-Year Total Return ->

Grand Canyon Education

A-Score: 5.9/10

Value: 3.1

Growth: 6.8

Quality: 8.3

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

1-Year Total Return ->

National Beverage

A-Score: 5.5/10

Value: 4.0

Growth: 5.6

Quality: 7.8

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

Coca-Cola Consolidated

A-Score: 5.3/10

Value: 4.1

Growth: 8.4

Quality: 6.2

Yield: 2.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Celsius

A-Score: 4.8/10

Value: 0.4

Growth: 10.0

Quality: 6.4

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

Primo Water

A-Score: 4.2/10

Value: 2.8

Growth: 5.2

Quality: 4.8

Yield: 5.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

19.68%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.55%

Celsius Holdings, Inc. - US15118V2079

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CELH

1.c. Company Highlights

Higher Growth

Expensive

Better Quality

Earnings Beats

Revenues Miss

Revenues Beats

More Volatile

Earnings Miss

Lower Yield

Strong Momentum

2. Celsius Holdings' Q3 2025 Earnings: A Strong Performance

Revenue Growth Drivers

Valuation Metrics

Operational Highlights and Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.96%)

6. Segments

Pepsi

Expected Growth: 10.95%

All Other

Expected Growth: 10.95%

Costco

Expected Growth: 10.78%

Amazon

Expected Growth: 11.4%

7. Detailed Products

Celsius Energy Drinks

Celsius HEAT

Celsius On-The-Go

Celsius Fitness Drinks

8. Celsius Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Celsius Holdings, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.06$

Current Price

42.06$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA