Celsius currently trades at $37.40 and has been a dream stock for shareholders. It’s returned 2,456% since April 2020, blowing past the S&P 500’s 86.9% gain. The company has also beaten the index over the past six months as its stock price is up 10.5% thanks to its solid quarterly results.
Is now still a good time to buy CELH? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Is CELH a Good Business?
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Celsius’s sales grew at an incredible 62.8% compounded annual growth rate over the last three years. Its growth beat the average consumer staples company and shows its offerings resonate with customers. 
2. Outstanding Long-Term EPS Growth
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Celsius’s EPS grew at an astounding 260% compounded annual growth rate over the last three years, higher than its 62.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Celsius’s margin expanded by 8.3 percentage points over the last year. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose while its operating profitability fell. Celsius’s free cash flow margin for the trailing 12 months was 17.7%.
Final Judgment
These are just a few reasons why we're bullish on Celsius, and with its shares topping the market in recent months, the stock trades at 42.5× forward price-to-earnings (or $37.40 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More Than Celsius
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
