$29.31
arrow_drop_up0.96%Is CELH a Buy or Sell based on AI Analysis?
Fundamental Analysis
Celsius Holdings (CELH) has a strong financial position as indicated by its high return on equity (ROE) of 26.57%. This metric reflects how efficiently the company is utilizing its shareholders' equity to generate profit. Additionally, the company's net margin of 17.21% and operating margin of 23.45% indicate strong profitability and operational efficiency. Celsius Holdings also has a healthy current ratio of 4.42, demonstrating its ability to pay off short-term liabilities with its current assets. Furthermore, the company has a low debt-to-equity ratio of $0, suggesting minimal reliance on debt financing and a lower financial risk. In terms of valuation metrics, Celsius Holdings has a price-to-sales ratio of 4.73, which is considered reasonable compared to industry standards. The company's price-to-book ratio of 16.96 reflects the market's perception of its value relative to its book value per share. Additionally, the price-to-cashflow ratio of 24.85 and price-to-free cashflow ratio of 27.31 provide insight into the company's ability to generate cash from its operations. Overall, these fundamental indicators suggest that Celsius Holdings is in a solid financial position with strong profitability, operational efficiency, and reasonable valuation metrics.
Positive Development
Celsius Holdings has a strong track record of growth, having minted more millionaires than Apple over the past decade. The company has recently expanded its CELSIUS ESSENTIALS line with two new delicious flavors, signaling a commitment to innovation and growth. Despite a recent stock price drop, the company's financial fundamentals are strong, with a high asset turnover, strong gross margin, and positive net margin.
Negative Development
The company's stock price has been steadily decreasing over the past few weeks, indicating a potential downward trend. Celsius Holdings has faced inventory issues with PepsiCo, which could potentially affect its operations and financial performance. The company's high level of debt, as evidenced by its high net debt to total capital and net debt to total equity ratios, could pose a significant risk to its financial health.
Technical Analysis
Celsius Holdings (CELH) currently has a technical rating of NEUTRAL, with a price of $28.82. The stock has shown a downward trend in the past, with the seven-day price percent change at -12.39% and the one-month price change percent at -9.82%. Additionally, the stock has seen a significant decrease in price over the past three months, with a price change percent of -48.59%. The stock's technical indicators for the month show three buy signals (ATR, WILLR, and STOCHRSI) and five hold indicators (RSI, MACD, CCI, ADX, and ROC), with no sell indicators. The stock's technical analysis was last updated on October 7, 2024. In terms of support and resistance levels, Celsius Holdings has a longest downward trendline slope of -0.02, indicating a bearish trend. The longest trendline forecast price is $97.18, compared to the initial price of $99.62 on March 14, 2024. The stock's closest support and resistance levels have not been provided in the data, suggesting potential volatility in the stock's price movement. Overall, the technical analysis for Celsius Holdings suggests a neutral stance with a bearish trendline direction and a potential target price of $97.18 based on the longest trendline forecast.
Conclusion and recommendation
Based on the data provided, Celsius Holdings (CELH) appears to be a promising investment opportunity. With a current price of $28.82 and a analyst forecast price of $83.07, there is a potential upside of 188.23%. The company has shown strong growth in revenue, with a revenue growth rate of 104.81% and a net income of $226.8M. Additionally, Celsius Holdings has a strong return on equity of 26.57% and a solid operating margin of 23.45%. The company's market scores also indicate positive sentiment, with high scores in industry and sector categories. Overall, based on the financial performance and market outlook, it is recommended to consider investing in Celsius Holdings for potential long-term growth. In conclusion, Celsius Holdings presents a compelling investment opportunity with strong growth prospects and positive market sentiment. The company's robust financial performance, including high revenue growth and solid profitability metrics, indicate a strong potential for future returns. Furthermore, the analyst forecast price change percent of 34.56% suggests favorable market expectations for the stock. While there are risks associated with any investment, the overall outlook for Celsius Holdings appears to be positive. Investors looking for a growth-oriented stock with solid fundamentals and potential for significant upside may consider adding Celsius Holdings to their portfolio.