Celsius Holdings Inc (CELH)

[NewJerichoMan]

Interesting Comparable: HiBall

I'm hearing the price tag was $100M. The official price tag will probably leak in a couple days. But let's say for now, that's accurate. $100M for a company that did about $40M in the previous twelve months equates to a P/S multiple of 2.5x, which is a decent multiple for non-public company. I think ABI is gonna make out on this deal, and in Year 1.

Let's compare and contrast. HiBall's website below:

https://hiballer.com/


HiBall seems to be about a year further along than Celsius. They have organic energy drinks in multiple categories, a more complete portfolio. Organic but they're not science-backed like Celsius. Probably don't have the upside of Celsius but they're further along in their company life cycle.

Making $40M per year, and like Celsius, probably weren't turning much of a profit. Probably trying harder than Celsius to stay in the black because Celsius has a $hit-ton of cash ($20M+?). HiBaller just got the CVS deal so they were probably growing faster than Celsius over the past twelve months.

2.5x is a good multiple for a non-public company. If they were public, with a clean cap structure, I'd think the price tag would have been double (basing that on my gut) in this market. It's one of the reasons companies go public.

At today's $3.62 price tag, CELH's market cap is $160M or about ~6.4x their TTM net revenues (~$25M). If $CELH falls to $125M market cap or about $2.83 per share, it's a screaming buy. I have a buy order set at $3 but don't expect to get filled. A brother can hope though can't he?