Celsius Holdings Inc (CELH, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $18.64 billion, the stock is trading at $80.08. Over the past week, the stock has seen an 8.11% loss, which contrasts sharply with the impressive 38.48% gain over the past three months. According to GuruFocus's valuation metrics, the current GF Value of Celsius Holdings is $91.71, up from the past GF Value of $85.57. This suggests that the stock is currently modestly undervalued, a significant shift from its previous assessment as a possible value trap where investors were advised to think twice before investing.
Introduction to Celsius Holdings Inc
Celsius Holdings Inc, operating within the non-alcoholic beverages industry, has carved out a niche for itself with its energy drinks that boast natural ingredients and metabolism-enhancing properties. The company has a strong presence in North America, accounting for 96% of its revenue. Celsius Holdings has a diverse product range, including Celsius Originals, Celsius Essentials, and Celsius On-the-Go powder packets. The company's strategic focus on branding and innovation is complemented by a 20-year distribution agreement with PepsiCo, which holds an 8.5% stake in Celsius. This partnership underscores the company's potential for further growth and market penetration. 
Assessing Celsius Holdings' Profitability
Celsius Holdings' Profitability Rank stands at 4/10, reflecting a moderate level of profitability within the industry. The company's operating margin is an impressive 20.21%, which is better than 88.07% of its industry peers. Its return on equity (ROE) is 23.37%, surpassing 80.39% of competitors, while the return on assets (ROA) at 16.21% and return on invested capital (ROIC) at 40.70% also outperform the majority of the industry. However, it's worth noting that Celsius has only been profitable for four out of the past ten years, which is a lower rate of sustained profitability compared to many of its peers. 
Growth Trajectory of Celsius Holdings
The company's Growth Rank is an impressive 9/10, indicating robust growth. Celsius Holdings has achieved a 111.80% 3-Year Revenue Growth Rate per Share, outperforming 97.03% of its industry peers. Its 5-Year Revenue Growth Rate per Share is also strong at 80.50%, better than 97.67% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 34.55%, which is higher than 94.87% of the industry. The 3-Year EPS without NRI Growth Rate stands at a remarkable 195.50%, surpassing 96.77% of industry peers. The future EPS Growth Rate for the next 3 to 5 years is projected at 28.57%, which is also higher than the majority of the industry. 
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% stake in the company. Jefferies Group (Trades, Portfolio) owns 125,045 shares, equating to a 0.05% share, while Joel Greenblatt (Trades, Portfolio) holds 66,701 shares, or a 0.03% stake. The involvement of these notable investors may provide additional confidence in the company's future prospects and management.
Competitive Landscape
When compared to its competitors, Celsius Holdings stands out with its market cap of $18.64 billion. Coca-Cola Consolidated Inc (COKE, Financial) has a market cap of $7.66 billion, while Coca-Cola Femsa SAB de CV (COCSF, Financial) is valued at $19.96 billion, and National Beverage Corp (FIZZ, Financial) at $4.68 billion. Celsius's market cap suggests that it is a significant player within the industry, competing closely with Coca-Cola Femsa SAB de CV.
Conclusion
In summary, Celsius Holdings Inc's recent stock performance has been a mix of short-term losses and substantial gains over the past three months, with the company currently being modestly undervalued according to the GF Value. The company's position in the non-alcoholic beverage industry is solid, with a strong focus on profitability and growth. The presence of high-profile investors and a competitive stance against its peers further bolster the company's market presence. As Celsius continues to innovate and expand its reach, particularly through its partnership with PepsiCo, investors may find the company an attractive option for their portfolios.
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.
