The past year has been catastrophic for the energy drink manufacturer Celsius Holdings (Nasdaq: Celh)whose share price in this time frame reduced 66%. This once hot growth supplies saw that his assessment was getting into his tail, as investors become concerned about her suddenly less impressive numbers and his insufficient short -term prospects.
He ended last week at a price of $ 25.69-which is more than 74% compared to a 52-week maximum of $ 99.62. The company faces some challenges, but is it in poor condition and can it be more fall for Celsius, or could it be a good time now to consider buying this beaten supplies?
Key reason why Celsius was hot stock growth In recent years, it has been due to its impressive growth. But the last two quarters worried the job. His main distribution partner, PepsicoHe optimized (ie reduction) of the list of Celsius products, which is significantly weighed at the company’s growth rate.
The sale was reduced by 4% in the last three months of the year, but the good news is that the fall was not nearly as catastrophic as a drop of 31% that Celsius had experienced in the previous quarter. This could, however, be a bit of comfort for investors, as the company’s revenue has increased by 3%throughout the year, to about $ 1.4 billion.
Although Celsius has led the shares until last year, some investors may be wondering if they will simply return to reality; Even with this fall, five -year -old shares are about 1,300%. It is now traded with 29 times more than expected future earnings (based on the expectations of analysts), and its multiple price to sale is less than 5, which is far lower than what is average in the past.
Shares can still look expensive if you don’t expect recovery at its growth rate.
But since Celsius wants to gain a rival company to drink Alani Nutrition, it could put it in a great position to speed up his growth rate and become an even bigger player on a sugar -free drink market. The focus on these types of drinks could be a useful catering audience that is more aware of health and may benefit from the GLP-1 medication, which can help consumers turn away from sweet products.
There was a lot of bears around Celsius’s possessions, but this is still a promising growth inventory that needs to be purchased in the long run. Established himself as one of the best energy drink brands, and his estimate seems to be in line with that rival Monster drinkstrade Passed the price-cheese multiple out of 28 and more than 7 times more than your income.
