Shares of Celsius (CELH, Financial) have faced an 11% drop over the past week. This decline in stock price is mainly due to ongoing concerns regarding the company's sales performance and industry trends.
Celsius Holdings Inc (CELH, Financial) has recently encountered a significant downturn, with its sales plummeting by 31% in the latest quarter compared to 18 months ago. This downturn juxtaposes the earlier triple-digit growth experienced and aligns with a general slowdown in the energy drink industry. The irregular inventory levels with PepsiCo, its distributor, further exasperate the challenges faced by Celsius. Furthermore, Nielsen's recent sales data highlighted disappointing results for Celsius, especially when compared to competitors like Monster, which reported growth in both its main brand and Bang energy drinks. The absence of highlights on PepsiCo's energy drink unit in its earnings report has amplified investor concerns.
From a valuation perspective, Celsius Holdings Inc's stock appears to be significantly undervalued. The current price is close to a 2-year low, with the Price-to-Sales (PS) Ratio at 3.79, nearing its 3-year low. Notably, Celsius has a GF Value of $80.47, suggesting it is significantly undervalued. For detailed analysis, visit the GF Value page. The company exhibits strong financial strength, bolstered by an Altman Z-Score of 8.99, indicating a stable financial structure.
In contrast to the challenges, Celsius demonstrates robust financial health, with an impressive Piotroski F-Score of 7, highlighting a very healthy situation. The Beneish M-Score of -2.45 implies that the company is unlikely to be involved in financial manipulation. Additionally, Celsius boasts an EBITDA growth of 35.7% over the last year, showcasing its capability to generate income from its operations despite the headwinds.
Investor sentiment might be cautious due to the recent 10.83% drop in stock price within the past week. However, the company's strong fundamentals and strategic partnership with PepsiCo provide a solid foundation for potential recovery and growth in the long term.
