Celsius is Already Generating Strong Proft Margins | CELH Stock Deep Dive Part 4

Parkev highlights that Celsius has demonstrated improving profit margins, though with some volatility. The company's adjusted EBITDA significantly increased, and management is confident in continued margin improvement through 2026 and beyond, especially with acquisition-related costs largely behind them. He emphasizes the importance of operating cash flow to sales, noting Celsius achieved positive cash flow in 2022 and has consistently delivered double-digit ratios in recent years, which is crucial for a growing company as it reduces reliance on external capital.

Parkev also points out that Celsius's management recently repurchased approximately 700,000 shares for $24 million at an average price of $35.39. As of June 12, 2026, the stock is trading around $29 per share, which is nearly 38% down year-to-date and below the price at which management was buying. With $236 million remaining in their authorized $300 million repurchase program, Parkev considers it reasonable to assume—and expresses his hope—that management will increase the volume of share repurchases in the current quarter, particularly because the valuation looks attractive. He notes that Celsius's forward price-to-earnings ratio of 17.8 and forward price to operating cash flow are at their lowest levels in several years, making the stock appear cheap. Parkev concludes that he favors management buying back stock when valuations are low and the business is not declining but rather still in its early growth stage, expanding internationally and gaining market share in the energy and overall beverage market, as is the case with Celsius.