Celsius Holdings Inc (CELH, Financial) has experienced a remarkable surge in its stock price, with a 32.50% gain over the past week and an impressive 65.91% increase over the past three months. The company's market capitalization now stands at $20.14 billion, with a current stock price of $86.87. This performance has brought the stock to a valuation that GuruFocus deems as "Fairly Valued," with a GF Value of $88.68, a notable rise from the past GF Value of $82.23. Just three months ago, the stock was considered a "Possible Value Trap, Think Twice" situation, but its recent trajectory has shifted this perspective significantly.
Introduction to Celsius Holdings Inc
Celsius Holdings Inc (CELH, Financial) operates within the Beverages - Non-Alcoholic industry, focusing on energy drinks that feature natural ingredients and metabolism-enhancing formulations. The company has established a significant presence in the North American market, which accounts for 94% of its revenue. Celsius Holdings has a diverse product portfolio, including Celsius Originals beverages and Celsius On-the-Go powder packets. The company's strategic partnership with PepsiCo, which holds an 8.5% stake, has been a pivotal move, especially with the 20-year distribution agreement forged in 2022. Celsius Holdings outsources manufacturing, packaging, and distribution, allowing it to concentrate on branding and innovation. 
Assessing Celsius Holdings' Profitability
Celsius Holdings' Profitability Rank stands at 4/10, reflecting its competitive position in terms of profitability within the industry. The company's Operating Margin is 15.21%, outperforming 80% of its peers. Additionally, its Return on Equity (ROE) is 16.73%, surpassing 64.08% of competitors, while the Return on Assets (ROA) at 11.45% and Return on Invested Capital (ROIC) at 27.41% are better than 77.27% and 87.27% of industry peers, respectively. However, it's worth noting that Celsius has only been profitable for 3 out of the past 10 years, which is better than just 7.53% of its peers. 
Exploring Celsius Holdings' Growth Potential
The company's Growth Rank is an impressive 9/10, indicating strong growth in revenue and profitability. Celsius Holdings boasts a 3-Year Revenue Growth Rate per Share of 94.70%, which is higher than 97.03% of its industry counterparts. The 5-Year Revenue Growth Rate per Share is also robust at 59.20%, outpacing 97.7% of peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 33.17%, which is superior to 100% of its competitors. These figures underscore the company's strong growth trajectory and potential for future expansion. 
Notable Shareholders in Celsius Holdings
Celsius Holdings has attracted the attention of several prominent investors. Ray Dalio (Trades, Portfolio) holds 210,292 shares, representing a 0.09% share percentage. Jefferies Group (Trades, Portfolio) owns 125,045 shares, equating to a 0.05% share percentage, while Joel Greenblatt (Trades, Portfolio) has a stake of 66,701 shares, or 0.03%. These holdings reflect the confidence and interest of seasoned investors in the company's performance and future prospects.
Competitive Landscape
When compared to its competitors, Celsius Holdings Inc stands out with a market capitalization of $20.14 billion. This positions the company well above National Beverage Corp (FIZZ, Financial) with a market cap of $4.87 billion but slightly above Coca-Cola Femsa SAB de CV (COCSF, Financial) at $19.33 billion. However, it is significantly larger than Coca-Cola Consolidated Inc (COKE, Financial), which has a market cap of $7.83 billion. These comparisons highlight Celsius Holdings' substantial size and market share within the non-alcoholic beverage industry.
Conclusion
In summary, Celsius Holdings Inc's stock has seen a significant upswing in recent months, now considered fairly valued according to the GF Value. The company's strong position within the non-alcoholic beverage industry, coupled with its impressive growth prospects and profitability metrics, make it an attractive option for investors. Notable shareholders have taken positions in the company, signaling confidence in its future. When compared to its competitors, Celsius Holdings' market capitalization suggests a dominant presence and a significant market share. As the company continues to innovate and expand, it remains a stock to watch in the dynamic beverage sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
