What a brutal six months it’s been for Celsius. The stock has dropped 54.5% and now trades at $26.33, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Given the weaker price action, is now the time to buy CELH? Find out in our full research report, it’s free.

Why Is Celsius 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 can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Celsius’s 77.4% annualized revenue growth over the last three years was incredible. Its growth beat the average consumer staples company and shows its offerings resonate with customers.

2. Outstanding Long-Term EPS Growth

We track the change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Celsius’s full-year EPS flipped from negative to positive over the last three years. This is a good sign and shows it’s at an inflection point.

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 7.5 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 by more than its operating profitability. Celsius’s free cash flow margin for the trailing 12 months was 12.4%.

Final Judgment

These are just a few reasons why Celsius ranks highly on our list. With the recent decline, the stock trades at 30× forward price-to-earnings (or $26.33 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than Celsius

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