CELH is undervalued with significant upside due to low valuation multiples relative to growth prospects and expected margin expansion.

Number one, Celsius Holdings. Ticker symbol on this one is C E L H. This is a $31 stock as of today. It's up about 6.6% over the past month. So, it has started to move up in the right direction. Oh, do I love this stock.

Okay, so Celsius, if you don't know, they're an energy drink company. Celsius brand has become very famous now at this point in time. I would say most people watching this video, especially if you live in United States of America, which I think about 60% of my audience or so lives in the United States of America.

You you've seen that product before. Maybe you don't drink it, but you've seen it at the grocery store or you've seen it at Walmart or Target or somewhere, right? Or maybe you have some friends or family members that drink Celsius or you've seen it at the gym. very popular, very very popular, Celsius has taken off.

No one ever heard of that brand, you know, six years ago or so, and now it's huge and it's everywhere, right?

So, that's their big brand. Their second big brand that they own, and this one's expanding rapidly right now, it's called Alani. And Alani is just that one's been taking off and growing insane.

And then they own a third brand now. They just acquired this brand recently from Pepsi and it is Rockstar.

Now look at Celsius's revenues over the past several years, right? That's what you want to see from a chart. Now they had a dip here, right? and and then sometimes, you know, sell through is going to be stronger, the brand's going to be stronger, they do an acquisition that boosts the numbers up in a short-term time period or something like that, right?

But at the end of the day, you got to say, what has happened to this company over the past 5 years and look at where their revenue was at back here? Look at where their projected revenues are going here. You know, that's a huge come up right now.

Additionally, when it comes to Celsius, huge, huge room for improvement when it comes to their margins over this next uh, you know, 5 to 10 years. Their margins are like not where they're going to be.

You know, like the the move up in the margin should be substantial. Like really Celsius has been focused on market share, market share, market share, right? They don't need to focus nearly as much on market share over the next 5 years.

Why? They now own about 20%ish of the market share in the United States of America in North America for energy drinks, right? So there's just not a need to for them to battle it out for every bit of market share now at this point in time, right?

They might be able to grow that market share to 22 or 25% or something like that maybe over the next few years, but they don't really need to go after market share in a substantial way.

So now you can focus more, you know, if we talk about 2027, 2028, 2029, they can focus more on margins and profitability. And so understand there's massive room up to to move up there.

Right? So what I'm comparing here is Celsius, Monster, and Coca-Cola. Okay? KO and look at the margins of Celsius versus Monster versus Coca-Cola. And I'm talking gross margins and net margins.

Celsius has gross margins of 48%. Monster is at 55%. Coca-Cola is at 61%. Net margins of Celsius are an embarrassing 4% versus Monster at 23% and Coca-Cola at 28%.

The the you got to understand where Celsius's focus has been. their focus has been all around market share the last several years and so you're not really focusing on margin when you're focused on market share right meanwhile like yeah they want to keep their market share but they don't need to grow their market share in any massive way nowadays right

Right? So Celsius just major room to focus on margins and profitability over the next several years. So you'll see gross margin uptick substantially in my opinion over the next several years and net margins.

Okay. Now, additionally, this is a very attractive forward P and two-year forward P on Celsius. Ford P on Celsius, you know, mid20s, maybe. I I can make a strong argument. I think it's actually low 20s.

It's like a dosey dough. It's at 22, right? That's crazy when you think about Celsius. It's long-term growth opportunity to be trading at a forward P of in my belief probably about 22 right now.

Way too low. Two year forward P on Celsius is in the teens. Come on, man. with a growth rate of Celsius for the next 5 10 years. You're going to throw a teens to your 4P in the stock.

What are we doing here? Like that's crazy. That's just this stock is way too discounted in my opinion.

Right now, Alani New, this is very important. That brand is insanely strong with females. Okay, women. 70% of their their you know uh customers are like 18 to 44 women, right? That is really really phenomenal for them because if you think about the energy drink category over the years, right?

And I used to be, you know, I used to work at Walgreens for years and obviously we sold energy drinks there and then I used to work for QuickTrip QT as a manager and I can just tell you when somebody came and brought up Monsters, Red Bulls, Rock Stars, right back when I was working for the company, it was dudes. was dudes that do construction work, landscapers, and other like bluecollar jobs and, you know, even some, you know, more like corporate types.

But at the end of the day, it was bunch of dudes buying energy drinks.

And so Alon is really Celsius is the one that really started, in my opinion, to tap into the female demographic when it comes to energy drinks. And then I think Alani's just really expanded on that in a major major way.

And that's what makes those companies very very special because they're able to serve a, you know, a base there that just wasn't a traditional strong user base when it came to energy drinks, right?

Right. Speaking about balance sheet, Celsius has a great balance sheet. The latest quarterly numbers, cash and cash equivalent, $631 million. That's versus long-term debt at $667 million.

So, I mean, just based upon their cash level alone, they could basically wipe out or almost wipe out long-term debt. That's incredible. And if we're looking at stockholder equity, stockholder equity is now up to about $1.2 billion for Celsius. really great balance sheet and think about where this balance sheet goes over the next, you know, two, three, four years.

That cash balance should continue to build substantially. I doubt they're going to acquire any other brands anytime soon, right?

So, Celsius, $31 stock. As of right now, I'm loading on this stock anywhere in that 28 to 33 range. Obviously, I would much rather have it even lower than 28. Like, give it to me at 27, 26, 25, right?

But the moral of the story is it's kind of been in that 28 to 33 range recently. And so I'm just gobbling up as many shares as I possibly can. Celsius long-term in my opinion based upon my projections I've run on thousandx I have this stock going to you know where over $100 a share longterm.