Celsius Holdings Rated 60% Under Price/Sales Strategy

Celsius Holdings Inc (CELH) has been rated at 60% using the Price/Sales Investor model. Despite strong free cash flow and long-term EPS growth, the stock fails on its price/sales ratio and profit margins, raising concerns about its valuation and future performance.

Date: 29-03-2025

AI Rating: 5

Company Overview
Celsius Holdings Inc (CELH) is positioned as a mid-cap growth stock within the non-alcoholic beverage industry. Although CELH received a 60% rating based on the Price/Sales Investor model, concerns arise due to its failure in key financial metrics.
Key Metrics Analysis
The analysis reveals that CELH has a strong long-term EPS growth rate along with satisfactory free cash flow per share. This is a positive indicator as it may suggest resilience in generating cash and growth potential, which is attractive to investors.
However, the stock's performance is marred by significant shortcomings. The price/sales ratio fails to meet acceptable parameters, indicating that despite growth, the stock might be overvalued relative to its sales performance. Moreover, the three-year average net profit margin is a failure, suggesting inefficiencies in converting revenue into profit, which could deter potential investors.
The combination of these factors could create volatility in the stock's performance. Over the next 1 to 3 months, investors will closely monitor how Celsius addresses these profitability concerns and whether they can leverage their growth potential effectively. The overall sentiment might oscillate as short-term traders act on the balance of these contrasting factors.

Stocks: CELH