Celsius Holdings Inc. Common Stock (CELH)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $79 million in annual free cash flow (0.9% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.24, providing financial flexibility
• Revenue growth of 117.2% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($8) with negative 315% margin of safety—limited downside protection

AI Analysis

Celsius Holdings Inc. Common Stock is a small-cap consumer defensive company valued at $8.6 billion. The business generates $2.5 billion in annual revenue with a 0.4% net margin and $79 million in free cash flow. From a quality standpoint, Celsius shows Altman Z-Score of 2.8 in the grey zone and modest 5% ROE. On valuation, the stock is commanding a steep 135.7x multiple, with trades far above its Graham Number ($8) with no margin of safety. Growth dynamics show revenue growing at 117.2% and profit growth of 231.1%. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Celsius's 117% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $79 million in annual free cash flow (0.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 136x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer