Capital Cube's Analysis of CELH Q3 Results
"CELH-US‘s change in revenue this period compared to the same period last year of 82.28% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that CELH-US is holding onto its market share. Also, for comparison purposes, revenues changed by 7.87% and earnings by 100.68% compared to the immediate last period."
"The company’s earnings growth was influenced by year-on-year improvement in gross margins from 41.31% to 43.33% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from -20.35% to 1.09% compared to the same period last year. For comparison, gross margins were 44.79% and EBITDA margins were -22.63% in the last reporting period."
"Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is possible that the company’s performance is a result of truly delivering in the marketplace and not simply an accounting prop-up using the balance sheet."
"CELH-US‘s improvement in gross margin has been accompanied by an improvement in its balance sheet as well. This suggests that gross margin improvements are likely from operating decisions and not accounting gimmicks. Its working capital days have declined to 157.85 days from 365.02 days for the same period last year."
"CELH-US‘s change in operating cash flow of 52.59% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable."
"The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -20.59% to 1.01% and (2) one-time items. The company’s pretax margins are now 0.15% compared to -22.18% for the same period last year."
http://www.capitalcube.com/blog/index.php/cel...yptr=yahoo
"CELH-US‘s change in revenue this period compared to the same period last year of 82.28% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that CELH-US is holding onto its market share. Also, for comparison purposes, revenues changed by 7.87% and earnings by 100.68% compared to the immediate last period."
"The company’s earnings growth was influenced by year-on-year improvement in gross margins from 41.31% to 43.33% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from -20.35% to 1.09% compared to the same period last year. For comparison, gross margins were 44.79% and EBITDA margins were -22.63% in the last reporting period."
"Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is possible that the company’s performance is a result of truly delivering in the marketplace and not simply an accounting prop-up using the balance sheet."
"CELH-US‘s improvement in gross margin has been accompanied by an improvement in its balance sheet as well. This suggests that gross margin improvements are likely from operating decisions and not accounting gimmicks. Its working capital days have declined to 157.85 days from 365.02 days for the same period last year."
"CELH-US‘s change in operating cash flow of 52.59% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable."
"The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -20.59% to 1.01% and (2) one-time items. The company’s pretax margins are now 0.15% compared to -22.18% for the same period last year."
http://www.capitalcube.com/blog/index.php/cel...yptr=yahoo
