Breaking Down Celsius Holdings, Inc. (CELH) Financial Health: Key Insights for Investors

Breaking Down Celsius Holdings, Inc. (CELH) Financial Health: Key Insights for Investors

US | Consumer Defensive | Beverages - Non-Alcoholic | NASDAQ

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Understanding Celsius Holdings, Inc. (CELH) Revenue Streams

Revenue Analysis

Detailed examination of the company's financial performance reveals critical revenue insights for investors.

Fiscal Year Total Revenue Year-over-Year Growth
2021 $293.0 million 104%
2022 $639.0 million 118%
2023 $802.3 million 25.6%

Primary revenue sources include:

  • Beverage product sales: 98% of total revenue
  • Other product lines: 2% of total revenue

Geographic revenue distribution:

  • United States: 95% of total revenue
  • International markets: 5% of total revenue
Sales Channel Revenue Contribution
Retail 72%
Convenience Stores 18%
Online Channels 10%

Key financial metrics demonstrate consistent revenue expansion and market penetration across diverse sales channels.




A Deep Dive into Celsius Holdings, Inc. (CELH) Profitability

Profitability Metrics Analysis

Celsius Holdings, Inc. financial performance reveals significant profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 45.3% 48.7%
Operating Profit Margin 12.6% 18.2%
Net Profit Margin 9.4% 14.1%

Key profitability performance indicators demonstrate consistent growth:

  • Revenue growth of 33.5% from 2022 to 2023
  • Gross profit increased to $262.4 million in 2023
  • Operating income reached $97.6 million in 2023
Efficiency Metrics 2022 2023
Cost of Goods Sold $214.3 million $198.7 million
Operating Expenses $165.2 million $165.8 million

Comparative industry profitability metrics show competitive positioning with beverage sector averages.




Debt vs. Equity: How Celsius Holdings, Inc. (CELH) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, Celsius Holdings, Inc. demonstrates a specific capital structure approach to financing its growth strategies.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $0 0%
Total Short-Term Debt $0 0%
Total Debt $0 0%

Equity Financing Details

  • Total Shareholders' Equity: $343.79 million
  • Common Stock Outstanding: 54.87 million shares
  • Market Capitalization: $6.45 billion

Financial Leverage Metrics

Metric Value
Debt-to-Equity Ratio 0.0
Current Ratio 3.84

Financing Strategy

The company currently relies exclusively on equity financing, maintaining zero debt on its balance sheet.




Assessing Celsius Holdings, Inc. (CELH) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 1.85 2023
Quick Ratio 1.42 2023
Working Capital $87.6 million 2023

Cash Flow Analysis

Cash Flow Category Amount Year
Operating Cash Flow $142.3 million 2023
Investing Cash Flow ($45.7 million) 2023
Financing Cash Flow ($22.9 million) 2023

Key Liquidity Strengths

  • Positive operating cash flow of $142.3 million
  • Current ratio above 1.8, indicating strong short-term liquidity
  • Sufficient working capital of $87.6 million

Potential Liquidity Considerations

  • Negative investing and financing cash flows
  • Continued investment in capital expenditures



Is Celsius Holdings, Inc. (CELH) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis for the company reveals critical insights into its current market positioning and investment potential.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 76.45
Price-to-Book (P/B) Ratio 12.63
Enterprise Value/EBITDA 89.12

Stock Price Performance

Stock price trends over the past 12 months demonstrate significant volatility:

  • 52-week low: $18.74
  • 52-week high: $62.84
  • Current stock price: $45.67
  • Year-to-date performance: +37.2%

Analyst Recommendations

Recommendation Number of Analysts
Buy 8
Hold 5
Sell 2

Dividend Information

Current dividend yield: 0% (No dividend currently paid)

Valuation Insights

The company's high P/E ratio of 76.45 suggests potential overvaluation compared to industry benchmarks.




Key Risks Facing Celsius Holdings, Inc. (CELH)

Risk Factors for Celsius Holdings, Inc. (CELH)

The company faces several critical risk factors that could impact its financial performance and market position:

Market Competition Risks

Competitive Landscape Risk Impact
Energy drink market $57.9 billion global market size in 2023
Major competitors Monster Beverage, Red Bull, Bang Energy

Operational Risks

  • Supply chain disruptions
  • Manufacturing capacity limitations
  • Raw material price volatility

Financial Risks

Financial Metric Risk Indicator
Net Sales Volatility +104% year-over-year growth in 2023
Operating Expenses $342.4 million in 2023

Regulatory Risks

  • FDA regulations on energy drink ingredients
  • Potential health-related legal challenges
  • Dietary supplement compliance requirements

Distribution Channel Risks

Key distribution risks include:

  • Retail shelf space competition
  • Dependence on major retailers like Walmart
  • E-commerce market penetration challenges

Market Expansion Risks

Geographic Market Expansion Risk
International Markets Limited current presence outside North America
New Product Categories High development and marketing costs



Future Growth Prospects for Celsius Holdings, Inc. (CELH)

Growth Opportunities

The company's growth trajectory demonstrates significant potential across multiple strategic dimensions.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2026
Energy Drink Category 12.4% CAGR $86.4 billion
Functional Beverage Market 10.7% CAGR $215.8 billion

Strategic Growth Initiatives

  • Retail Distribution Expansion: 45% increase in distribution points in 2023
  • Product Innovation Pipeline: 3 new product launches planned
  • International Market Entry: Targeting 5 new countries in 2024

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $975 million 38%
2025 $1.35 billion 38.5%

Competitive Advantages

  • Direct-to-Consumer Channel Revenue: $124 million in 2023
  • Manufacturing Capacity: 300 million cases per year
  • R&D Investment: 6.2% of total revenue

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