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Celsius Holdings: Good For The Mind, Body, And Wallet

May 01, 2020 2:54 PM ETCelsius Holdings, Inc. (CELH)9 Comments
Zachary O'Brien profile picture
Zachary O'Brien


  • CELH has maintained over a 40% growth rate in the past 5 years.
  • They occupy a growing niche in the beverage industry: healthy, functional drinks.
  • Increasing brand recognition will spur future growth in the coming years.

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Investment Thesis

Celsius (NASDAQ:CELH) is set for significant strides in the beverage industry. In the past several years, they've had tremendous growth (>40%), and that trend will continue because of three main factors, the first two being a shifting global trend towards healthier, functional beverages, and an increase in distribution and product variety, with the introduction of retail partners such as Walmart (WMT). These two will contribute to the most important reason why Celsius has a great deal of potential: an imminent increase of name brand recognition.

Shifting Consumer Tastes/The Drink

Consumers nowadays are looking for more out of their beverages, both in function and health. Drinks containing high sugar and artificial ingredients are losing attraction as "clean-label attributes" are gaining popularity.

[Consumers seek] clean-label attributes, including organic, non-GMO and free from artificial flavors, colors or sweeteners; low sugar and/or natural alternative sweetener use; functional ingredient content; and probiotics.

- Kimberly Kawa, senior nutrition researcher, Chicago-based SPINS LLC

This is exactly what Celsius has to offer: 0 sugars, gluten free, kosher, non-GMO, vegan, no sodium, no artificial flavors, and containing their MetaPlus Proprietary Blend, which has been proven to boost metabolism, as well as the body's fat-burning capabilities.

Source: Celsius.com

The drink's functionality is the caffeine boost, given by the 200mg of caffeine per serving, combined with the thermogenic, MetaPlus Blend, increasing calorie burning abilities. Celsius can compete with other big energy drinks because it appeals towards shifting consumer tastes towards healthier, functional drinks. A traditional can of Monster (MNST

This article was written by

Zachary O'Brien profile picture
I am an undergraduate student working to improve my research and writing abilities. I'm mostly a long-only investor, focusing on growth stocks. I began investing in 2017, and am looking to get as much experience as I can before getting out of college.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (9)

Bold Investments profile picture
Do you know the percentage of institutional ownership at the time this was written?
CuckTrader profile picture
great call.
Q.Cap profile picture
Thanks for the article. Totally with the thesis. Hoping for another big pullback to add.
Growth Stock Prospector profile picture
Thanks for the article, where’d you get the rockstar sales info?
Growth Stock Prospector profile picture
I think that’s just Rockstar. Not Rockstar zero, Rockstar juiced etc... still, long CELH!
Return to the Average Investor profile picture
Yeah i think Rockstar brand had estimated total sales of 680 Million in 2018, this puts P/S at closer to 5.66. Monster has a price to sales of 8. In comparison at the time of writing this CELH had a P/S at 3.56 which was an absolute steal. I have been long since $4.00

does anyone else think the recent move has made this stock overheated? we are now at a P/S of 6.52.
Altitrade Partners profile picture
Nicely done, Zachary.

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