Is It Too Late to Buy Celsius Holdings Stock? It might come as a surprise to discover that the energy drink industry is one of the most in-demand industries in the world right now.
With so many people constantly on the move and looking for a way to stay energized as they go about their busy days, it’s no surprise that energy drinks are the first place people turn. Celsius Holdings, the company responsible for Celsius Fitness Drinks, is one of the most popular names in the industry right now.
The company’s stock rose from just over $20 in October 2020 up to a high of $98 in September 2021. But, with the company’s price per share on the decline since hitting this September peak, is it too late to buy Celsius Holdings stock?
Celsius Holdings Financials
Consumers are flocking to Celsius Holdings (CELH) as reflected quite clearly in the company’s quarterly earnings report.
Between the second quarter of 2020 and the second quarter of 2021, Celsius Holdings saw its global revenue rise 116% from $30 million up to $65.1 million.
A substantial $4.9 million of this total came from increased growth in the realm of fitness and vending sales.
Domestically, the company’s revenue went from $20.8 million in Q2 of 2020 up to $53.6 million in Q2 of 2021 — a massive increase of 157%.
Internationally, Celsius Holdings increased its revenue 25% from Q2 of 2020 to Q2 of 2021 by rising from $9.2 million to $11.5 million.
Celsius Holdings Stock Price Forecast
Looking forward over the next twelve months to the second quarter of 2022, analysts are generally optimistic.
Looking at the most bullish analysts’ predictions, Celsius Holdings could reach a share price of $115 over the next twelve months. The bears forecast that Celsius could drop to $82 per share.
Based on a discounted cash flow forecast analysis, CELH share price could rise to $100 per share.
Shelf Resets Set To Favor Celsius
With numbers out of the way, it’s also worth examining the business practices and external factors that might have an impact on Celsius Holdings’ price per share in the near future. First and foremost, there’s the impending shelf resets that typically hit stores in the fall.
Because Celsius added about 20,000 stores during the first six months of 2021 alone, there’s a huge potential for the company to gain extra shelf space in retailers the world over — especially as Coke Energy loses more and more of that shelf space due to underperformance.
If Celsius continues to perform well, it’s not out of the ordinary to expect to see the company earn some more space after these fall shelf resets.
The Company’s Shift to DSD
In addition to the positive impact from shelf resets, Celsius Holdings also recently made the switch to direct store delivery (or DSD).
DSD is a way for Celsius Holdings to bypass suppliers and distributors and ensure the company’s products make it to retailers directly from the source.
This move proved to be truly great for the company — Since shifting to a DSD sales network, Celsius Holdings saw growth of 333% in distributor revenues in the second quarter of 2021 compared to the second quarter of 2020.
As Celsius’s DSD practices continue to grow and improve, this impressive growth should continue to increase in the quarters to come.
Celsius Holdings on Amazon in Europe
While the DSD network is a big part of Celsius’s growth, it’s just one lever driving the company’s increase in sales and revenue — especially when considering the company’s global sales.
In the coming months, Celsius Holdings will hit Amazon in the United Kingdom and Germany and then spread to additional countries in the European Union throughout 2022.
This includes Sweden, Spain, Italy, France, and several others. With Celsius already the third-highest-selling energy drink on Amazon to begin with, this expansion to other Amazon markets could prove to be a huge plus for Celsius Holdings and its price per share.
Celsius Holdings’ Customer Loyalty Is Remarkable
One of the most underrated aspects driving Celsius Holdings’ growth forward is the fact that the company has an incredibly loyal customer base.
While this helps spread the word about Celsius Fitness Drinks without the need to spend as much on advertising, it also helps the company know that — should the market demand the company increase its prices to match those of the competition — Celsius has a dedicated fan base that will more than likely continue to buy the product, even after whatever price increases may come.
Massive Growth for Celsius Holdings
While Celsius Holdings’s growth between Q2 of 2020 and Q2 of 2021 is stellar, it looks even better when broadening the scope beyond this 12-month timeframe.
When viewing Celsius’s growth between January of 2020 and September of 2021, the growth in price per share is astonishing from under $5 to nearly $100 — that’s over 2,000% percent.
While this price per share has dropped somewhat since September, sinking down under $90 per share, this is still over 1,800% growth in stock price from Q1 of 2020 to Q4 2021.
Celsius Holdings’ Market Share
Despite so much tremendous growth for Celsius Holdings, the company’s market share is still just 1%.
The energy drink industry continues to boom as of late, which means there’s all kinds of competition – and not just from the titans like Monster and Red Bull.
However, it helps for retail investors and traders to think of it this way: If Celsius has seen such great success at just 1% market share, imagine what that success would look like if the company can increase that market share.
Red Bull and Monster might dominate over 80% of the energy drink market, but one look at Amazon — which has Celsius at #3 behind these two in terms of energy drink sales — and it’s clear to see that Celsius isn’t worth dismissing based simply on small market share alone.
Is It Too Late To Buy Celsius Holdings Stock?
It’s not wrong for investors to wonder if it’s too late to get their hands on some Celsius Holdings shares. However, based on its promising financials, its reassuring forecast, and its growth spreading across multiple continents, it seems quite fair to say that it’s not too late to buy Celsius Holdings stock. The company might be experiencing a dip presently, but analysts seem to agree that it won’t be a permanent trend at all.
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