Florida-based Celsius Holdings (NASDAQ: CELH) has been making waves in the energy drink market with its thermogenic drinks that claim to help consumers burn calories even while at rest. The company’s bold flavors and unique properties have helped it stand out in a crowded space, leading to a stunning rise in revenue of 15,000% over the last decade.
Celsius’ success has been further boosted by the missteps of competitor Bang Energy, which recently went bankrupt after losing distribution deals and court cases to Monster Energy. Celsius seized the opportunity to capture market share and even secured Bang’s lost distribution deal with Pepsi, leading to a significant increase in revenue.
Despite a recent 27% drop from its 2024 high, Celsius stock remains up 28% year to date and 140% in the past year. The company’s revenue in 2023 was up 102% year over year to $1.3 billion, with impressive growth in the fourth quarter.
With international expansion and increased entry into food-service chains on the horizon, Celsius is expected to generate $1.7 billion in revenue this year. The company also reported a net income of $182 million in 2023, with a profit margin of nearly 14%.
While Celsius’ valuation may seem high with a price-to-sales ratio of just under 13, the company’s growth opportunities and profit potential justify the price tag. Investors should consider Celsius as a golden growth stock with long-term potential.
In conclusion, despite the recent drop in stock price, Celsius remains a strong investment opportunity for those looking to capitalize on the company’s growth trajectory and profit potential. With a solid business outlook and promising growth opportunities, Celsius is a growth stock worth considering for investors.
