Important note
This AI stock analysis for Celsius Holdings is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Celsius Holdings - AI Stock Analysis
Analysis generated November 19, 2024
Celsius Holdings, Inc. (CELH) is a globally recognized brand in the health and fitness industry, primarily known for its range of energy drinks. The company distinguishes itself with its functional beverages, which contain proven ingredients and aim to support an active lifestyle. As an active player in the rapidly growing energy drink market, Celsius Holdings has consistently focused on innovation and marketing to expand its customer base and achieve strong financial performance.
Fundamental Analysis
In the latest quarter, Celsius Holdings reported revenue of $266 million, representing a 33.89% decrease from the previous quarter. Compared to the same quarter last year, revenue decreased by 30.93%. This downward trend in revenue is concerning and may indicate underlying issues that need to be addressed.
Net income for the last quarter was $6.4 million, showcasing a significant decrease of 92.03% compared to the quarter before and a decrease of 92.43% compared to the same quarter last year. Such a drastic reduction in profitability is alarming and could reflect operational inefficiencies or increased costs.
EBITDA for the last quarter was $3.1 million, which is a decrease of 103.27% compared to the previous quarter and a decrease of 103.15% compared to the same quarter last year. EBITDA is crucial as it reflects the company's operating performance without the impact of financial and accounting decisions. The significant drop suggests severe challenges faced by the company in maintaining profitability.
Currently, the P/E ratio is 35.64. Generally, a high P/E ratio could indicate that the stock is overvalued. Investors might perceive Celsius Holdings' current value as expensive in relation to its earnings, presenting a bearish outlook.
Technical Analysis
The current stock price of Celsius Holdings stands at $25.67, marking a 24.17% decrease over the past month, which is concerning in the short term. Additionally, the stock has fallen by 52.62% over the past year, raising long-term alarm bells.
The trend is bearish, with the current SMA10 at 26.57, compared to the previous SMA10 value of 26.89. This suggests a potential downward price movement.
The Relative Strength Index (RSI) is at 41.8, indicating neutral market conditions. An RSI below 30 typically signals an oversold condition, while an RSI above 70 indicates overbought. In this case, the RSI suggests that the stock is neither heavily undervalued nor overvalued at the moment.
Alternative Data Analysis
Celsius Holdings currently has 12 open positions according to leading job boards, a 20% decrease in the last couple of months. This could hint at cost-cutting measures or margin improvements rather than growth, which is not a favorable sign for a company aiming for expansion.
Employee sentiment within the company is neutral, which means there are mixed feelings among the workforce. This sentiment can impact productivity and innovation, crucial for competitive advantage.
The web traffic to Celsius Holdings' website is estimated at 420,000 visitors, which is a 63% drop in the last couple of months. A significant decrease in webpage visitors is worrisome, suggesting a potential loss of customers or diminished marketing effectiveness.
Celsius Holdings' social media engagement shows 750,000 followers on Instagram and 30,000 followers on Twitter. While Instagram metrics have remained flat, Twitter followers have increased by 12%, indicating some growing interest.
AltIndex's AI score, which predicts stock prices based on various data analyses, places Celsius Holdings with a score of 53, a hold signal. This reflects a cautious approach toward the stock, suggesting that significant shifts in the market or the company's performance could sway investor sentiment in either direction.
Conclusion
In summary, Celsius Holdings shows signs of fundamental weakness with significant revenue and profit declines. The high P/E ratio signals potential overvaluation, while technical indicators point to a bearish trend. The drop in job postings and web traffic further supports the outlook of a company undergoing financial strain. However, a neutral RSI and a hold score from AltIndex’s AI suggest that the stock is not entirely bearish. Based on the available data, this stock should be approached with caution. Investors are advised to seek further insights into the company's strategic plans and market conditions before making an investment decision.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
