Celsius has gotten torched over the last six months - since April 2026, its stock price has dropped 23.8% to $27.53 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
Given the weaker price action, is now an opportune time to buy CELH? Find out in our full research report, it’s free.
Why Does Celsius Spark Debate?
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Two Positive Attributes:
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Celsius’s sales grew at an incredible 47.4% compounded annual growth rate over the last three years. Its growth beat the average consumer staples company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Celsius’s EPS grew at 91.4% compounded annual growth rate over the last three years, higher than its 47.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
One Reason to Be Careful:
Shrinking Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Analyzing the trend in its profitability, Celsius’s operating margin decreased by 5.1 percentage points over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Celsius’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was 5.3%.
Final Judgment
Celsius has huge potential even though it has some open questions. With the recent decline, the stock trades at 17.8× forward P/E (or $27.53 per share). Is now the right time to buy? See for yourself in our full research report, it’s free.
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