Constellium (CSTM) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 80.6
• Beta (1Y): 1.21
• Revenue Growth: 2.52%
• EPS Growth: -83.35%
• Country: US
• Employees: 12,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 0.13
• Shares Outstanding: 139,539,020
• 10 Day Avg. Volume: 1,032,413
• 30 Day Avg. Volume: 1,130,026
• PEG Ratio: -0.48
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -13.35
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 7.22
• 1Y Price Target: $17.75
• Price Target Upside: 16.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $15.50 ▲(1.37% Upside)

Constellium's overall stock score reflects moderate financial performance with significant leverage and liquidity concerns. The positive technical indicators and improved earnings guidance are offset by high valuation risks and declining net income. The company's strategic focus on cost controls and strong packaging demand are positive, but challenges in key segments like automotive and aerospace weigh on the outlook.

Positive Factors

Revenue Growth

The 9% revenue growth indicates strong demand and effective pricing strategies, suggesting a robust market position and potential for sustained growth.

Packaging Segment Performance

The packaging segment's strong performance reflects growing demand and market share, supporting long-term revenue stability and profitability.

Adjusted EBITDA Target Raised

Raising the EBITDA target demonstrates confidence in operational efficiency and cost management, indicating potential for improved profitability.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Net Income Decline

The decline in net income suggests challenges in maintaining profitability, which could affect investor confidence and long-term financial health.

Automotive Segment Weakness

Weakness in the automotive segment indicates potential market challenges, affecting revenue and growth prospects in a key business area.

Constellium Business Overview & Revenue Model

Company Description

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products for the packaging, aerospace, and automotive end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. It also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded products and technologically advanced structures for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. The company sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. Constellium SE was incorporated in 2010 and is headquartered in Paris, France.

How the Company Makes Money

Constellium generates revenue primarily through the sale of its aluminum products, which include rolled products, extrusions, and specialized solutions tailored for the automotive and aerospace sectors. The company operates on a business model that focuses on long-term contracts and partnerships with major customers, ensuring stable revenue streams. Key revenue sources include the automotive sector, where Constellium supplies aluminum solutions for vehicle lightweighting, and the aerospace sector, providing essential components for aircraft manufacturing. Additionally, Constellium benefits from its strategic collaborations with leading companies in its target markets, enhancing its market presence and driving sales growth. The company's commitment to innovation and sustainability also positions it favorably in securing contracts that prioritize eco-friendly materials and manufacturing processes.

Constellium Financial Statement Overview

Summary

Constellium shows strong operational efficiency with robust gross profit and EBIT margins. However, high leverage and negative free cash flow pose financial risks, despite signs of revenue recovery.

Income Statement

Constellium's revenue shows a mixed trend with a slight decline in recent years, but the TTM (Trailing-Twelve-Months) data presents an improvement, indicating potential recovery. The gross profit margin is strong at 37.2% for TTM, suggesting efficient cost management. However, the net profit margin is modest at 1.7% for the same period, reflecting challenges in achieving higher profitability. The EBIT and EBITDA margins are robust, with TTM figures at 32.5% and 5.3%, respectively, indicating operational efficiency.

Balance Sheet

The company's balance sheet highlights a high debt-to-equity ratio of approximately 2.54 for TTM, indicating significant leverage, which could pose financial risks. Return on equity is moderate at 16.2% for TTM, reflecting reasonable profitability for shareholders. The equity ratio stands at 14.8% for the same period, suggesting limited equity financing and potential vulnerability during financial downturns.

Cash Flow

Constellium's cash flow analysis reveals challenges, particularly with negative free cash flow in recent periods, including TTM at -$105 million. The operating cash flow to net income ratio is 2.38 for TTM, suggesting adequate cash conversion from earnings. However, the free cash flow to net income ratio is negative, indicating issues in sustaining capital expenditures and operational cash requirements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.64B	7.08B	7.24B	7.97B	6.15B	4.88B
Gross Profit	1.05B	905.45M	710.00M	899.35M	664.00M	490.00M
EBITDA	543.88M	530.91M	605.00M	592.09M	764.00M	454.00M
Net Income	40.06M	54.06M	125.00M	301.00M	257.00M	-21.00M
Balance Sheet
Total Assets	5.37B	4.73B	4.66B	4.94B	4.62B	4.13B
Cash, Cash Equivalents and Short-Term Investments	133.00M	141.00M	210.00M	165.68M	147.00M	478.00M
Total Debt	2.03B	1.94B	1.87B	2.06B	2.13B	2.39B
Total Liabilities	4.57B	4.01B	3.80B	4.19B	4.33B	4.23B
Stockholders Equity	799.00M	681.50M	843.00M	731.00M	274.00M	-115.00M
Cash Flow
Free Cash Flow	-142.08M	-108.11M	169.00M	178.00M	125.00M	152.00M
Operating Cash Flow	256.74M	301.00M	506.00M	451.00M	357.00M	334.00M
Investing Cash Flow	-277.88M	-313.00M	-288.00M	-270.00M	-221.00M	-176.00M
Financing Cash Flow	-67.00M	-61.00M	-177.00M	-163.00M	-435.00M	101.00M

Constellium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSTM, the sentiment is Positive. The current price of 15.29 is above the 20-day moving average (MA) of 15.18, above the 50-day MA of 14.75, and above the 200-day MA of 12.29, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 65.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTM.

Constellium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRN	78 Outperform	$2.65B	167.01	1.79%	0.43%	5.55%	-79.38%
AA	73 Outperform	$9.61B	9.52	20.01%	1.11%	21.32%	―
KALU	71 Outperform	$1.29B	20.44	8.89%	3.95%	4.62%	56.04%
CENX	66 Neutral	$3.03B	29.23	17.74%	―	15.39%	-47.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NGVT	61 Neutral	$2.02B	―	-106.83%	―	-14.45%	49.92%
CSTM	58 Neutral	$2.16B	80.55	3.02%	―	2.52%	-83.35%