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Celsius Holdings Rated 60% by Price/Sales Investor Model

Celsius Holdings Inc has received a 60% rating from the Price/Sales Investor model. Significant strengths include long-term EPS growth and strong free cash flow, while it failed the price/sales ratio and net profit margin tests.

Date: 
AI Rating:   6
Celsius Holdings Inc Analysis

Celsius Holdings Inc (CELH) is classified as a mid-cap growth stock in the Beverages (Non-Alcoholic) industry, showing a mixed performance according to various investment strategies. The analysis reveals that CELH garnered a score of 60% using the Price/Sales Investor model based on Kenneth Fisher's strategy, which highlights the importance of low P/S ratios, profit growth, and robust free cash flow.

The analysis highlighted several important metrics:

  • Long-Term EPS Growth Rate: The company passed this criterion, indicating strong potential for earnings growth over the long term. This is a positive sign for professional investors, reflecting the potential for future profitability and stock price appreciation.
  • Free Cash Per Share: CELH also passed this metric, which suggests efficient cash generation capabilities. Strong free cash flow allows a company to invest in growth, pay dividends, or reduce debt, making it favorable for investors.
  • Price/Sales Ratio: The stock failed this test, which may create concern as a high P/S could signify overvaluation or lack of sales efficiency. Investors should monitor this metric when assessing the company’s valuation against industry peers.
  • Three-Year Average Net Profit Margin: Another area of concern is the failure in meeting expectations for net profit margin, which may indicate inefficiency in controlling expenses relative to revenue. Consistent low profit margins could limit long-term growth and operational sustainability.

Overall, while the rating of 60% suggests some interest, the failure in key metrics like P/S and net profit margins may raise red flags. Investors should evaluate these concerns alongside the positive indicators of EPS growth and free cash flow to determine if the stock aligns with their investment strategy or risk tolerance.

Stocks:  CELH