Celsius Holdings, Inc. (NASDAQ: CELH)

Sector: Consumer Defensive Industry: Beverages - Non-Alcoholic CIK: 0001341766
Market Cap 10.33 Bn
P/B 8.59
P/E 399.18
P/S 4.86
ROIC (Qtr) 3.19
Div Yield % 0.00
Rev 1y % (Qtr) 172.85
Total Debt (Qtr) 861.47 Mn
Debt/Equity (Qtr) 0.72
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About

Celsius Holdings, Inc., or CELH, is a thriving entity in the functional energy drink sector, with a strong presence in the U.S. and international markets. The company's primary focus is on the development, processing, marketing, selling, and distribution of functional energy drinks, specifically targeting fitness enthusiasts. The company's operations span across various retail channels in the U.S., including conventional grocery, natural, convenience, fitness, mass market, vitamin specialty, and e-commerce. Internationally, CELH utilizes regional...

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Investment thesis

Bull case

  • Strong operating cash flow of 554.55M provides robust 0.64x coverage of total debt 861.47M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 554.55M provides exceptional 15.27x coverage of interest expenses 36.32M, showing strong debt service capability.
  • Operating cash flow of 554.55M provides strong 22.40x coverage of stock compensation 24.75M, indicating sustainable incentive practices.
  • Strong tangible asset base of 2.95B provides 3.43x coverage of total debt 861.47M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 523.61M exceeds capital expenditure of 30.95M by 16.92x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 554.55M barely covers its investment activities of (1.36B), with a coverage ratio of -0.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 932.46M provide limited coverage of acquisition spending of (1.32B), which is -0.70x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 554.55M provides insufficient coverage of deferred revenue obligations of 412.99M, which is 1.34x, raising concerns about future service delivery capabilities.
  • High financing cash flow of 832.40M relative to working capital of 912.59M, which is 0.91x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of 554.55M is outpaced by equity issuance of (3.84M) (-144.49 ratio), indicating concerning reliance on equity markets for funding operations.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Beverages - Non-Alcoholic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KO Coca Cola Co 359.59 Bn 41.22 7.57 47.42 Bn
2 PEP Pepsico Inc 221.63 Bn 26.90 2.36 49.18 Bn
3 MNST Monster Beverage Corp 80.88 Bn 46.84 10.14 0.11 Bn
4 CCEP COCA-COLA EUROPACIFIC PARTNERS plc 48.53 Bn 20.84 1.97 12.58 Bn
5 COKE Coca-Cola Consolidated, Inc. 15.28 Bn 534.08 9.79 1.92 Bn
6 CELH Celsius Holdings, Inc. 10.33 Bn 399.18 4.86 0.86 Bn
7 KDP Keurig Dr Pepper Inc. 5.72 Bn 8.07 0.94 15.85 Bn
8 FIZZ National Beverage Corp 3.42 Bn 18.34 2.85 0.07 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.01 3.00
EV to Cash from Ops. EV/CFO 19.08 25.34
EV to Debt EV to Debt 12.28 82.79
EV to EBIT EV/EBIT 82.33 35.67
EV to EBITDA EV/EBITDA 88.63 24.62
EV to Free Cash Flow [EV/FCF] EV/FCF 20.21 40.15
EV to Market Cap EV to Market Cap 1.02 2.70
EV to Revenue EV/Rev 4.98 3.95
Price to Book Value [P/B] P/B 8.59 15.38
Price to Earnings [P/E] P/E 399.18 112.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.67 -230.19
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -1.98
Dividend per Basic Share Div per Share (Qtr) 0.00 0.88
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 30.31
Interest Coverage Int. cover (Qtr) 3.54 3.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -36.15 -59.79
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.18 125.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -6.02
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -58.08 -5.50
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -50.07 4.45
EBIT Growth (1y) % EBIT 1y % (Qtr) -52.93 70.95
EBT Growth (1y) % EBT 1y % (Qtr) -66.23 3.85
EPS Growth (1y) % EPS 1y % (Qtr) -85.14 5.85
FCF Growth (1y) % FCF 1y % (Qtr) 208.60 19.77
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 60.67 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 1.15
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio (Qtr) 0.91 0.76
Current Ratio Curr Ratio (Qtr) 1.89 1.78
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 1.22
Interest Cover Ratio Int Coverage (Qtr) 3.54 3.00
Times Interest Earned Times Interest Earned (Qtr) 3.54 3.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.10 9.71
EBIT Margin % EBIT Margin % (Qtr) 6.05 6.85
EBT Margin % EBT Margin % (Qtr) 4.34 5.02
Gross Margin % Gross Margin % (Qtr) 51.40 40.60
Net Profit Margin % Net Margin % (Qtr) 1.20 2.49