One-glance verdict
Undervalued
$41.62 our estimate vs market $26.75
Wall Street consensus: $42.29 (1.6% higher than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
Celsius Holdings, Inc.
CELH · NCM · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$26.75
52-week range
$23.56 - $66.74
Market cap
$6.77B
Balance sheet
Healthy
9.57x Adequate
Net debt $43.62M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 21.2% last year.
- Reward Returns 5.1% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Stock trades 11.7% above its 5-year average P/E.
What this company does
Celsius Holdings, Inc.
Celsius Holdings makes and sells popular energy drinks, most notably its main CELSIUS brand, which it markets to health-conscious and active consumers. The company earns money by distributing its drinks through a massive network of retailers, including supermarkets, convenience stores, and gyms. Therefore, its success depends on keeping the brand popular and getting its products into as many stores as possible.
How the company got here
Founded in 2004, Celsius started with the idea of a “calorie-burning” drink, setting itself apart from sugary energy drinks. The company struggled initially and was even removed from the NASDAQ stock exchange in 2010. A major turning point came when new leadership revitalized the brand, focusing on a health and fitness image which caught on with consumers. The most critical step in its recent explosive growth was a 2022 distribution deal with PepsiCo, which put Celsius drinks in many more stores across the country and was followed by the acquisition of the Alani Nu and Rockstar brands.
What it actually does
Celsius sells functional energy drinks, which are beverages designed to provide an energy boost with added benefits. You'd recognize their brightly colored cans under brand names like CELSIUS, Alani Nu, and Rockstar in convenience store coolers and on supermarket shelves. The company positions its drinks as a healthier alternative, often highlighting that they are zero-sugar and contain ingredients like green tea extract and vitamins. Besides ready-to-drink cans, they also offer powdered versions that you can mix with water.
Functional Beverages
The company operates as one main business focused on selling its portfolio of energy drinks. Celsius makes money by selling its beverages to a network of distributors, with PepsiCo being its most important partner, who then sell the products to retailers like grocery stores, convenience stores, and gyms. Celsius itself doesn't own big factories; it uses an 'asset-light' model, where it outsources (hires other companies for) the manufacturing and bottling of its drinks. This allows Celsius to focus its money on what it does best: designing new drinks and marketing its brands to appeal to health-conscious consumers.
What management is betting on now
Management's main strategy is to get their drinks in front of 'more people, in more places, more often.' A key part of this is deepening their partnership with PepsiCo to expand distribution (the network of trucks and warehouses that gets products to store shelves) both in North America and internationally. They are also focused on growing their entire portfolio of brands—CELSIUS, Alani Nu, and Rockstar—to appeal to different types of consumers. Finally, they are constantly working on product innovation (creating new flavors and drink types) to keep the brand exciting and attract new customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$8.69M
FY2024 Q4
$70.27M
FY2025 Q1
$96.42M
FY2025 Q2
$35.46M
FY2025 Q3
$321.46M
FY2025 Q4
$-129.97M
FY2026 Q1
$65.81M
FY2026 Q2
$205.48M
Revenue
$817.92M
Net income
$55.29M
Diluted EPS
0.14
Operating cash flow
$222.54M
Free cash flow
$205.48M
Fetching…
Sources
Revenue
$782.62M
Net income
$110.10M
Diluted EPS
0.33
Operating cash flow
$73.72M
Free cash flow
$65.81M
Fetching…
Sources
Revenue
$721.63M
Net income
$24.74M
Diluted EPS
0.04
Operating cash flow
$-119.44M
Free cash flow
$-129.97M
Fetching…
Sources
Revenue
$725.11M
Net income
$-61.01M
Diluted EPS
-0.27
Operating cash flow
$331.80M
Free cash flow
$321.46M
Fetching…
Sources
Revenue
$739.26M
Net income
$99.86M
Diluted EPS
0.33
Operating cash flow
$43.71M
Free cash flow
$35.46M
Fetching…
Sources
Revenue
$329.28M
Net income
$44.42M
Diluted EPS
0.15
Operating cash flow
$103.37M
Free cash flow
$96.42M
Fetching…
Sources
Revenue
$332.20M
Net income
$-18.88M
Diluted EPS
-0.10
Operating cash flow
$75.67M
Free cash flow
$70.27M
Fetching…
Sources
Revenue
$265.75M
Net income
$6.36M
Diluted EPS
0.00
Operating cash flow
$12.93M
Free cash flow
$8.69M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.62 vs current price $26.75
Wall Street consensus is the average analyst price target: $42.29 (1.6% higher than our fair-value estimate).
Our most-likely fair value is $41.62 a share — about 55.6% above today's price of $26.75, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $43.6M. Interest coverage 9.6x.
Net debt
$43.62M
Interest coverage
9.57x
Celsius Holdings, Inc.'s profit covers its interest bill about 9.6 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
CELH
BASELINE
Celsius Holdings, Inc.
Total debt $674.85M Interest coverage 9.57x This is the baseline the peer rows are being compared against.
Total debt $92.93M Interest coverage 38.30x +300% vs CELH Carries about 4.0x more debt cushion than CELH.
Total debt $33.53B Interest coverage 4.84x -49% vs CELH Carries about 2.0x less debt cushion than CELH.
Total debt $58.77M Interest coverage 21.71x +127% vs CELH Carries about 2.3x more debt cushion than CELH.
Total debt $5.70B Interest coverage 1.94x -80% vs CELH Carries about 4.9x less debt cushion than CELH.
What you should know
The case for and against CELH
3 Rewards
1 Risk
Rewards
-
Revenue grew 21.2% last year.
-
Returns 5.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 11.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
116.30x
Forward P/E
15.45x
P/B
5.65x
P/S
2.22x
EV/EBITDA
12.76x
PEG ratio
0.25x
Profitability
How much profit each dollar creates
Gross margin
48.8%
Operating margin
19.1%
Net margin
4.2%
ROE
5.1%
ROA
8.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.23x
Current ratio
1.80x
Quick ratio
1.31x
Total debt
$674.85M
Total cash
$631.23M
Growth
How the business has been compounding
Revenue TTM
$3.05B
Revenue 5Y CAGR
68.2%
EPS TTM
0.23
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$508.63M
Free CF TTM
$323.38M
FCF margin
10.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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