Should I Buy Celsius Holdings (CELH)? Finance YouTuber Analysis

The analyst views Celsius as undervalued, with a fair value estimate of $57.55 compared to its current price of $30. He highlights its strong growth prospects, international expansion in early stages, and a strategic partnership with PepsiCo which provides critical distribution advantages. The stock is also trading near its 52-week low and has a forward P/E of 18.75.

“It's a phenomenal growth prospect. It's expanding internationally. It's in the very early stages of expanding internationally and it has a strong strategic partner with Pepsico.”

The analyst recommends Celsius over Monster due to its current valuation. Despite Monster's stronger financial metrics, Celsius is trading significantly below its calculated fair value of $59 at $29, and near its 52-week low. The company also has growth potential through international expansion.

“So, if I had to pick between these two, I would pick Celsius as the better investment today.”

The analyst believes Celsius stock is undervalued, trading significantly below his discounted cash flow fair value of $58 per share, and also appears slightly undervalued by market multiples. He cites strong growth opportunities in the energy drink market, expanding retail shelf space, and the company's ability to maintain profitability and cash flow generation, with expectations for continued mid-to-high single-digit revenue growth and margin expansion.

“So overall, comprehensively, I can say that Celsius stock looks undervalued at current market prices. So based on what I found in this deep dive with Celsius, I think this is an undervalued stock you can buy.”

The analyst suggests buying Celsius stock, noting its current valuation is attractive, trading at its lowest forward price-to-earnings and price-to-operating cash flow in years. Management is actively repurchasing shares below previous average prices, indicating confidence. The company is still in its early growth stage, expanding internationally, and improving profit margins.

“So, when valuations are this cheap, I like when the management team is buying back stock. Especially if there is no reason for concern that the business is on its way down.”

The YouTuber discusses Celsius's international expansion, highlighting its partnership with PepsiCo and successful early results in Spain, suggesting confidence in future growth. While recent growth rates for the core Celsius brand were disappointing, the acquisition of Alani new brand delivered strong sales growth, and the company expects profit margins to improve as integration costs subside and economies of scale are realized, despite current commodity cost headwinds.

“Investors can be reasonably confident that Celsius will achieve success in its international expansion to a certain extent. That's because it's already found the formula that is successful in local domestic markets, and it can expand internationally using those formulas.”

The analyst is considering adding Celsius stock to his portfolio due to its significant market share growth in the expanding energy drink market, supported by a strong distribution partnership with PepsiCo. He also notes the company's effective acquisition strategy, successfully integrating Alani Nu and being on track with Rockstar, which is expected to drive long-term business growth despite recent stock price declines.

“I know I'm certainly considering this business. I've been following it for a while. I've had it on my watch list, and that's the reason why I'm doing this deep dive because I'm interested in adding this stock to my portfolio.”

The YouTuber identifies Celsius as a potential opportunity, noting that it hasn't run yet but recent Nielsen data shows strong volume growth for Celsius and its Alani Nu brand, indicating a healthy energy drink category. This contrasts with declining volumes in the soda category.

“Celsius holdings. You know, this one hasn't started to run yet, but I've been looking at some of the data that's come out, Neielson data and whatnot. Celsius including alawning new volumes up 11.9% with a 2% average price gain for 4 weeks through May 16th.”

The YouTuber believes Celsius Holdings, currently in the mid-$20s, could reach the mid-$40s within the next 9-12 months. He dismisses current worries, citing positive Nielsen data on sales and volumes, and compares its growth phase to Monster Beverage's past success, suggesting it's poised for a massive run.

“Celsius is poised to go on a massive run. So, mid20s right now. I wouldn't be surprised if the stock's mid-40s within the next 9 to 12 months.”

The YouTuber highly recommends Celsius Holdings, citing its continued market share gains, massive international expansion opportunity, and successful diversification with brands like Alani (targeting female demographics) and the recently acquired Rockstar from Pepsi. He projects a 30-50% compounded annual growth rate based on conservative revenue and net income growth, emphasizing its resilience to economic factors and its strong partnership with Pepsi for distribution.

“I think the stock will be one of the best performing stocks over the next 5 to 10 years.”

The YouTuber identifies Celsius Holdings as a consumer discretionary stock poised for a significant run. He believes that once the current semiconductor stock frenzy subsides, capital will flow into undervalued consumer discretionary names, leading to an '18 to 24-month insane bull run'.

“Celsius Holdings down 36% year-to date. Get ready for a run.”

The YouTuber is highly bullish on Celsius Holdings, citing its strong revenue and net income growth (138% and 148% respectively), favorable forward P/E ratio compared to competitors like Monster and Coca-Cola, and significant growth potential through new brands and international expansion. He projects a 35-41% compound annual growth rate in his base case, even with conservative margin estimates, and believes the stock is a 'steel deal' at current prices.

“I'm banging my hand on the table with Celsius. This stock is a steel deal.”

The YouTuber identifies Celsius Holdings as a currently hated stock, trading at $30, significantly below its all-time high of around $100. He likes the company's growth from Celsius and Alani, its distribution, and international opportunities, expecting it to become a 'loved' stock in one to two years.

“Celsius Holdings is 30 bucks. You know, another hated stock right now. This stock's alltime high was right around 100, right? It's 30.”

The analyst suggests Celsius is a compelling buy after a significant drawdown, improving its valuation (forward P/E of 37). He expects steady growth in 2025-2026, driven by the recent acquisition of Alani Nu and the resolution of inventory issues with Pepsi, which should lead to normalizing operating margins.

“I think that we're going to see steady growth from Celsius and then also the addition of Alani new which should get get them into more new markets the real opportunity for Celsius is going to be leveraging kind of the certainty that they have in the business for those to see those margins go up.”

The YouTuber is generally positive on Celsius, despite the recent acquisition of Alani Nu adding debt and diluting shareholders. He believes the acquisition is a good strategic move, potentially adding new product categories and leveraging distribution, which could reignite growth and provide long-term upside for investors. He is holding his shares to give management time to integrate the new company and realize synergies.

“I'm generally positive I'm not selling my shares of Celsius going to at least give management a little bit of time to work things things out and integrate the company.”

The YouTuber sees Celsius as a buy, despite its recent stock performance, believing it's now in 'value territory' with attractive valuation multiples. While recent revenue drops were due to distributor inventory adjustments, underlying customer demand continues to grow. The company's strong balance sheet and larger market potential compared to competitors suggest significant long-term growth and potential for acquisition.

“This is a very unloved stock in the market today but that's the kind of stock I want to be buying because I think the long-term future is much brighter than the market currently thinks it is.”

The analyst believes Celsius is approaching a good value territory for long-term investors, despite recent poor earnings due to distributor destocking. He argues that the underlying demand and market share gains are still present, and the company has a strong balance sheet. The downside is also limited by the possibility of Pepsi acquiring the company.

“I would love to get more shares at something like a 20 times normalized earnings level. We're maybe not quite there yet, but we're definitely closer than we were just a few months ago.”

The analyst is bullish on Celsius for the long term, citing its recent acquisition of a co-packer as a strategic move to gain better control over its supply chain and cost structure, which should improve margins. Despite a recent inventory adjustment by Pepsi impacting short-term sales, the company's long-term growth trajectory and reasonable valuation (P/E just under 30) make it an attractive investment.

“I think that's a reasonable risk reward for celi it doesn't mean that the next quarter which is going to be released next week is going to be great but it means that long term I think that this is still a company that has a lot of Runway.”

The YouTuber recently bought Celsius stock, viewing the current price as attractive despite short-term headwinds from Pepsi reducing orders. He believes the inventory adjustments are temporary, and long-term growth drivers like increased shelf space, broader market appeal, and a shift towards sugar-free drinks will drive future success. The valuation metrics, such as a P/E of 31 and EV/Sales of 5, are also seen as favorable compared to historical levels.

“This is a stock that I actually bought earlier this week so I'm definitely a buyer and that was even at a little bit higher price point than we have today.”

Travis Hoium argues that Celsius stock is a buying opportunity due to its attractive valuation after a significant price drop, despite continued strong growth in its core business and significant international expansion potential. He highlights the company's 30.2x annualized earnings multiple for a company growing at 23% (or more, adjusting for inventory changes) and its improving gross margins, suggesting the market is overreacting to short-term 'noisiness' in sales data.

“the valuation for Celsius stock has gotten much better I don't think the company is in nearly the dire position that a 50 plus% drop in the stock indicates this is a stock that I own in the aetric portfolio definitely one that I would consider adding as I allocate more money over the next couple of months”

The YouTuber is holding Celsius stock, emphasizing a long-term perspective despite recent short-term volatility driven by scanner data and inventory adjustments. He believes the company has significant international growth opportunities and potential to expand into new retail locations, which will drive long-term sales, even if US growth slows. He acknowledges the high valuation but focuses on fundamental growth drivers.

“I'm not selling shares but also my cost basis is right around $50 per share so I've tried to avoid paying too much for the stock but that's also hard to determine exactly what that is for a company that still at today's price is trading for 60 times earnings”

The analyst is bullish on Celsius long-term due to significant international growth opportunities in Europe and Asia, which are currently untapped. He believes the recent stock sell-off is an overreaction to short-term data, and if the stock falls below $50, it presents a compelling buying opportunity given its valuation and capital-light business model.

“if the stock falls under $50 that's where I get really excited about buying shares for what should be a long-term growth story.”

Hoium is bullish on Celsius Holdings, highlighting its incredible revenue growth (105% CAGR since 2019) driven by improved domestic placement and significant international expansion. He notes its capital-light business model, leveraging co-packers and distribution partners, allows for rapid growth. While acknowledging the high valuation, he sees it as a phenomenal growth story to hold for the next decade and would add on weakness.

“this is a stock that I own have held for less than a year now but have had a nice gain and I'm not looking to sell anytime soon in fact I'm looking to add on any weakness in shares so just one of those phenomenal growth stories that I don't think is any ending anytime soon will be great to hold for the next decade”

The YouTuber is holding Celsius Holdings, acknowledging its high valuation but emphasizing strong underlying sell-through growth (72% in Q1 2024) despite reported revenue fluctuations due to distributor inventory adjustments. He believes the company has significant long-term growth potential, especially in international markets and by expanding beyond the traditional energy drink category, supported by a strong balance sheet and capital-light business model.

“I still like where celsi is right now I would of course love to buy shares at a lower multiple but that's not where we are today but I don't see any fundamental flaws in the investment thesis longterm and I'm happy to be a shareholder in this stock”

The YouTuber would consider buying Celsius Holdings shares if they pull back to a lower valuation, specifically a 30-40 times earnings multiple. This is because he sees no fundamental flaws in the long-term investment thesis, citing strong sell-through growth, international expansion potential, and a differentiated market position beyond traditional energy drinks.

“if shares do pull back over the next few months I'd be happy to buy at a 34 40 times earnings multiple that would be much more attractive than where we are today”

The YouTuber believes Celsius Holdings is a good long-term buy despite its high valuation (15x sales, 100x P/E) due to significant international growth opportunities. The company's asset-light model, leveraging PepsiCo for distribution and co-packers for manufacturing, allows for rapid expansion into new markets like Canada, UK, Ireland, Australia, New Zealand, and France. Analysts expect revenue to grow at 37% over the next two years, which would help justify the current valuation.

“I do own shares and I am not selling anytime soon if the momentum continues for this company so I'm want to dig into exactly what the next opportunity for Celsius is and that is international growth.”

Travis Hoium argues that Celsius Holdings (CELH) has significant growth potential despite its high valuation. He identifies three key drivers: improved in-store placement, expansion into food service locations leveraging the Pepsi distribution deal, and tapping into vast international markets where current revenue is minimal. He believes Celsius's broader appeal compared to competitors like Monster positions it for long-term growth.

“I think right now the right thing to do is just ride the company's growth for as long as they're growing at an outstanding pace like they currently are.”

Travis Hoium is holding Celsius stock, citing its continued strong performance with 95% revenue growth, high gross margins, and a strong balance sheet with no debt. He believes the company has significant growth potential through international expansion, increased shelf space, and entry into food service, despite its high valuation. The asset-light business model, leveraging co-packers and the Pepsi distribution partnership, allows for rapid, profitable growth.

“I think this is a company that can continue to grow at an extremely high rate maybe not 95% in 2024 but a growth rate of 40 50 60% can make this a phenomenal investment despite the fact that it's still a very expensive stock so this is a stock that I own that I'm just going to continue holding as long as Celsius keeps crushing each quarterly report which they did again today”

Hoium identifies Celsius as a phenomenal growth company with strong revenue expansion and a capital-light business model. While acknowledging its high valuation (P/E over 100), he believes its growth rate, potential for international expansion, and product positioning make it a compelling, albeit higher-risk, investment.

“Celsius a little bit higher risk because of the price that you're paying we'll see how the quarterly numbers look here in the next couple of weeks but I really like where the product is positioned and how the business is performing right now.”

The YouTuber is adding Celsius Holdings due to its phenomenal growth rate, evidenced by a 138% compound annual growth rate since late 2020. The business model is capital-light, outsourcing manufacturing and distribution, allowing rapid expansion. Management expects continued growth through improved retail placement and partnerships, despite the stock's high valuation.

“I love the company I love the growth rate and that's why this is one stock that I have been adding recently”

Travis Hoium advises avoiding Celsius stock due to its extremely high valuation, trading at 10 times forward sales. He acknowledges the company's impressive growth and strong balance sheet but warns that any slowdown in growth could lead to significant stock price declines, a risk he is unwilling to take in the current high-interest-rate environment.

“my only problem with the stock right now is just simply valuation paying 10 times forward sales is just an astronomical evaluation because if anything goes wrong if sales drops from 100 growth to 50 growth the stock could fall 20 30 40 50 in value and that's just a risk that I'm not willing to take right now”

The analyst recommends Celsius Holdings due to its strong brand recognition and recent distribution agreement with Pepsi, which also took an equity stake. This partnership is expected to significantly expand international distribution and could lead to a tripling or quadrupling of sales over the next decade. While it trades at a premium valuation (15x sales), the long-term growth potential justifies the price.

“I don't think quadrupling their sales over the next decade it is out of the question so I think that this is still a company with a lot of upside here”

The YouTuber is holding his Celsius position, acknowledging recent volatility but maintaining a long-term thesis. He views the Alani Nu acquisition as a positive, value-creating deal at a good price, and is encouraged by international expansion. However, he notes concerns about declining sales, market share loss (though to Alani Nu), and increased risk due to the acquisition not being finalized and potential lack of a strong moat.

“I'm not a trader, I don't care, I don't care about this kind of movements, I just have a thesis that plays in the long run. It will take place in the next year or a couple of years, and yes I just thinks in the long run they will create value and may share will go up.”

The YouTuber expresses a preference for Celsius, viewing it as an undervalued company. He notes that Celsius is currently trading at 2021 prices despite having four times more revenue, suggesting a significant discount compared to its growth. He contrasts this with Palantir's high valuation.

“anyway I would rather bet on undervalue companies like celsius if I'm wrong at least I'm not paying 88 times Revenue right now celsus is selling at 2021 prices with four times more Revenue”

The YouTuber expresses skepticism about Celsius's future growth prospects, noting a significant slowdown in revenue growth, declining market share, and strong competition from established brands like Red Bull and Monster. While acknowledging a strong balance sheet and good management, he is not convinced the company can maintain high growth rates or become the dominant energy drink, making it unattractive for his portfolio.

“I'm not entirely sold on the future of this business. I have no idea if its growth rates are going to kick back up or they will or if the company's going to continue taking market share from Red Bull this one is just very far out of my personal circle of competence so I'm not really interested in adding it to my portfolio at the moment.”

The YouTuber views the recent 50%+ drop in Celsius Holdings as a significant buying opportunity. He attributes the decline to a temporary inventory issue with PepsiCo, its distributor, rather than fundamental problems. He highlights Celsius's strong growth in the energy drink market, its transition to profitability, high margins, and debt-free balance sheet, suggesting it's an early-stage quality stock with substantial upside.

“lange Rede kurzer Sinn die Aktie die ich mir heute ins Depot legen werde ins firmendepot wo es um Kursgewinner nicht um Dividenden geht das wird die Celsius Holdings sein.”