Celsius Holdings Shares Plummet 66% Amid Growth Concerns

Celsius Holdings faces a turbulent year with a stock decline of 66%, raising investor worries. As challenges mount, the future remains uncertain, raising questions about stock recovery potential.

Date: 08-03-2025

AI Rating: 4

Revenue Growth: Celsius has experienced a troubling decline in sales. For the last three months of the year, sales were down 4%, although this was an improvement compared to a steep 31% drop in the previous quarter. Despite this, yearly revenue grew only 3%, reaching about $1.4 billion.

Stock Valuation: Although the stock has nosedived, it is still trading at 29 times its expected future earnings, which could suggest it remains overpriced if growth does not rebound. Its price-to-sales multiple has dropped to less than 5, significantly lower than the stock’s historical average.

Market Position: Celsius, known for its strong presence in energy drinks, is facing challenges from its main distributor, PepsiCo, which is reducing inventory levels, negatively impacting growth. The recent acquisition target, Alani Nutrition, could help accelerate revenue recovery and cater to health-conscious consumers, potentially stabilizing the stock in the long term.

In conclusion, while Celsius Holdings has had a dismal year with challenges in revenue growth and declining stock prices, its focus on sugar-free beverages and possible acquisitions could offer a glimmer of hope for recovery. Investors might view this pullback as a buying opportunity for a promising long-term growth stock.

Stocks: CELH PEP