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Constellium (CSTM)
NYSE:CSTM
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Constellium
(NYSE:CSTM)
63Neutral
Positive Factors
Financial performance
CSTM beat expectations and reiterated guidance, positively impacting sentiment given uncertainty around end-market exposure.
Long-term growth
Recovering aerospace build rates and infrastructure investments are seen as positive for CSTM long-term.
Negative Factors
End market weakness
Constellium has been going through a rough patch driven by end market weakness, which is viewed as cyclical.
Market challenges
Aerospace shipments declined by 11% as commercial OEMs continued to address excess inventory caused by ongoing supply chain challenges.
Constellium (CSTM) vs. S&P 500 (SPY)
Market Cap
$1.54B
Dividend YieldN/A
Average Volume (3M)1.81M
Price to Earnings (P/E)34.7
Beta (1Y)1.14
Revenue Growth-2.29%
EPS Growth-48.13%
CountryUS
Employees12,000
SectorBasic Materials
Sector Strength59
IndustryAluminum
Share Statistics
EPS (TTM)0.31
Shares Outstanding142,918,000
10 Day Avg. Volume2,331,312
30 Day Avg. Volume1,809,852
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.75Price Target Upside41.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Constellium Business Overview & Revenue Model
Company DescriptionConstellium 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 MoneyConstellium makes money by producing and selling aluminum products that cater to various industries, including aerospace, automotive, and packaging. Its revenue model is primarily based on long-term contracts and spot sales with major manufacturers and suppliers in these sectors. The company benefits from strategic partnerships and collaborations that enhance its market reach and product offerings. Additionally, Constellium invests in research and development to innovate and improve its product lines, thereby maintaining a competitive edge and driving sales. Key revenue streams include the sale of sheets, plates, extrusions, and other aluminum-based components tailored to client specifications. The company's earnings are also influenced by factors such as aluminum market prices, global demand for lightweight and sustainable materials, and operational efficiencies.
Constellium Financial Statement Overview
Summary
Constellium's financial performance shows mixed results. The gross profit margin is strong, but the net profit margin and revenue growth are weak, indicating cost management and growth challenges. The balance sheet is highly leveraged, limiting flexibility, and negative free cash flow raises liquidity concerns.Income Statement
Constellium's income statement demonstrates a mixed performance. The TTM data shows a gross profit margin of 31.68%, reflecting a solid profitability level. However, the net profit margin is relatively low at 0.61%, indicating potential challenges in cost management. The revenue growth rate between the latest annual report and TTM is negative, at -4.61%, suggesting a decline. EBIT and EBITDA margins in the TTM are 26.61% and 4.26%, respectively, pointing to operational efficiency challenges.65
Positive
Balance Sheet
The balance sheet reveals a moderate financial structure with a debt-to-equity ratio of 2.64 in the TTM, indicating significant leverage that could pose risks if not managed. ROE is relatively low at 5.78%, suggesting that equity is not being used to its fullest potential. The equity ratio is 15.35%, reflecting a low proportion of equity financing, which may limit financial flexibility.58
Neutral
Cash Flow
Cash flow analysis highlights some challenges, with a negative free cash flow growth rate and a negative free cash flow in the TTM, implying difficulties in generating cash after capital expenditures. The operating cash flow to net income ratio is strong at 8.42, showing good cash generation relative to net income. However, the negative free cash flow to net income ratio indicates insufficient cash flow to cover net income.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.08B | 7.24B | 8.12B | 6.15B | 4.88B | Gross Profit |
| 905.45M | 710.00M | 672.00M | 664.00M | 490.00M | EBIT |
| 556.01M | 337.00M | 334.00M | 484.00M | 125.00M | EBITDA |
| 530.91M | 605.00M | 601.00M | 764.00M | 454.00M | Net Income Common Stockholders |
| 54.06M | 125.00M | 301.00M | 257.00M | -17.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 141.00M | 210.00M | 197.00M | 205.00M | 478.00M | Total Assets |
| 4.73B | 4.66B | 4.94B | 4.62B | 4.13B | Total Debt |
| 1.94B | 1.87B | 2.06B | 2.13B | 2.39B | Net Debt |
| 1.79B | 1.69B | 1.89B | 1.98B | 1.95B | Total Liabilities |
| 4.01B | 3.80B | 4.19B | 4.33B | 4.23B | Stockholders Equity |
| 681.50M | 843.00M | 731.00M | 274.00M | -115.00M |
| Cash Flow | Free Cash Flow | |||
| -108.11M | 169.00M | 178.00M | 125.00M | 152.00M | Operating Cash Flow |
| 290.56M | 506.00M | 451.00M | 357.00M | 334.00M | Investing Cash Flow |
| -302.14M | -288.00M | -270.00M | -221.00M | -176.00M | Financing Cash Flow |
| -58.88M | -182.00M | -163.00M | -435.00M | 101.00M |
Constellium Technical Analysis
Positive
11.14
Price Trends
10.25
Positive
10.30
Positive
12.59
Negative
Market Momentum
-0.04
Negative
63.33
Neutral
92.19
Negative
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 11.14 is above the 20-day moving average (MA) of 8.80, above the 50-day MA of 10.25, and below the 200-day MA of 12.59, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 63.33 is Neutral, neither overbought nor oversold. The STOCH value of 92.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTM.
Constellium Risk Analysis
Constellium disclosed 31 risk factors in its most recent earnings report. Constellium reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Constellium Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.12B | 25.86 | 6.16% | 4.62% | 1.56% | -22.11% | |
64 Neutral | $1.57B | 5.22 | 64.15% | ― | 1.60% | ― | |
63 Neutral | $1.54B | 34.65 | 7.93% | ― | -2.29% | -48.13% | |
63 Neutral | $6.41B | 88.27 | 17.53% | 1.63% | 22.45% | ― | |
58 Neutral | $828.86M | ― | -41.03% | 2.55% | -2.75% | -339.59% | |
49 Neutral | $1.95B | -1.37 | -21.43% | 3.74% | 0.84% | -29.84% | |
48 Neutral | $1.21B | ― | -104.11% | ― | -16.92% | -6107.70% |
* Basic Materials Sector Average
Performance Comparison
CSTM
Constellium
11.14
-9.07
-44.88%
AA
Alcoa
25.53
-10.83
-29.79%
CENX
Century Aluminum
17.29
0.48
2.86%
KALU
Kaiser Aluminum
69.16
-22.92
-24.89%
RDUS
Schnitzer Steel Industries
29.43
12.32
72.00%
NGVT
Ingevity
35.04
-18.52
-34.58%
Constellium Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 16.16%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements, such as growth in revenue and net income, and strong safety performance, there were also notable challenges, including declines in shipments, negative free cash flow, and the impact of tariffs on costs. The sentiment is balanced with a slight inclination towards the challenges faced by the company.Q1-2025 Updates
Positive Updates
Strong Safety Performance
Achieved a recordable case rate of 1.02 per million hours worked, surpassing safety targets.
Revenue Increase
Revenue of $2 billion, a 5% increase compared to the first quarter of 2024, driven by higher metal prices.
Net Income Growth
Net income of $38 million in the quarter, up from $22 million in the first quarter last year.
Packaging Segment Performance
Packaging shipments increased by 9% in the quarter, with demand remaining healthy in North America and Europe.
Solid EBITDA Performance
Adjusted EBITDA was $140 million, excluding the positive non-cash impact from metal price lag.
Negative Updates
Decline in Shipments
Shipments were 372,000 tons, down 2% compared to the first quarter of 2024.
Negative Free Cash Flow
Free cash flow was negative $3 million in the first quarter.
Aerospace and TID Segment Weakness
Adjusted EBITDA for A&T segment decreased by 14% due to lower shipments in aerospace and TID markets.
Automotive Segment Challenges
Automotive shipments decreased by 15% in the quarter, with continued weakness in North America and Europe.
Impact of Tariffs
Section 232 tariffs on Canadian extrusions resulted in a $1 million impact in Q1, with an expected $20 million impact for the rest of the year.
Company Guidance
During the Constellium First Quarter 2025 Results Call, the company provided guidance on several key financial metrics. They reported a revenue increase of 5% to $2 billion compared to Q1 2024, primarily due to higher metal prices, even though shipments decreased by 2% to 372,000 tons. Net income rose to $38 million from $22 million the previous year. Adjusted EBITDA was $186 million, including a $46 million non-cash impact from metal price lag, with an economic performance of $140 million after exclusion. They faced a $4 million foreign exchange headwind and a $10 million negative impact from last year's flood at Valais. Constellium maintained its 2025 guidance for adjusted EBITDA, excluding metal price lag, between $600 million to $630 million, and projected free cash flow of over $120 million, despite a challenging environment. The company also highlighted a 1.02 recordable case rate per million hours worked and a share repurchase of $15 million, with an anticipated leverage decrease from 3.3 times by year-end.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.