Constellium (CSTM) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.18
• Revenue Growth: -2.29%
• EPS Growth: -48.13%
• Country: US
• Employees: 12,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Aluminum
• EPS (TTM): 0.26
• Shares Outstanding: 142,918,000
• 10 Day Avg. Volume: 1,375,445
• 30 Day Avg. Volume: 1,528,040
• PEG Ratio: 0.63
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 12.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $14.00 ▲(4.79%Upside)

Constellium's overall score reflects strong technical momentum and operational efficiency offset by financial stability risks due to high leverage and negative cash flow. The earnings call highlighted both achievements and challenges, adding a mixed sentiment. Valuation concerns due to a high P/E ratio further moderate the overall score.

Positive Factors

Earnings and Financial Performance

CSTM beat 1Q25 expectations and reiterated guidance, which had a more positive impact for CSTM given uncertainty around end-market exposure.

Long-term Growth Prospects

Recovering aerospace build rates from Boeing and Airbus, European defense infrastructure investments, and North American can-sheet benefiting from tariffs are seen as positive for CSTM long-term.

Share Repurchase and Capital Allocation

Improved profitability is also expected to result in free cash flow in excess of $120m, giving Constellium some ability to accelerate share repurchases.

Negative Factors

Market Conditions

Constellium has been going through a rough patch driven by end market weakness, which is viewed as cyclical.

Supply Chain Challenges

Aerospace shipments specifically declined by 11% as commercial OEMs continued to address excess inventory caused by ongoing supply chain challenges.

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 through the sale of its aluminum products, which are primarily targeted towards the aerospace, automotive, and packaging industries. The company operates in three main segments: Aerospace & Transportation, Packaging & Automotive Rolled Products, and Automotive Structures & Industry, each contributing to its overall earnings. Revenue is driven by long-term contracts with key clients, including automotive manufacturers and aerospace companies, who require high-performance and lightweight materials. Constellium also leverages its technological advancements to create value-added products, which command higher margins. Strategic partnerships and collaborations with industry leaders to develop new materials and solutions further bolster its revenue streams. Additionally, the company's focus on sustainability and recycling initiatives provides an edge in attracting environmentally conscious clients, thus enhancing its market position and profitability.

Constellium Financial Statement Overview

Summary

Constellium demonstrates strengths in operational efficiency and cost management, as reflected in its gross profit and EBIT margins. However, high leverage and negative free cash flow pose financial stability risks. Revenue and profitability are showing recovery signs, but balance sheet and cash flow challenges require attention for long-term sustainability.

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	7.33B	7.08B	7.24B	8.12B	6.15B	4.88B
Gross Profit	1.01B	905.45M	710.00M	672.00M	664.00M	490.00M
EBITDA	385.92M	530.91M	605.00M	601.00M	764.00M	454.00M
Net Income	75.06M	54.06M	125.00M	301.00M	257.00M	-17.00M
Balance Sheet
Total Assets	5.17B	4.73B	4.66B	4.94B	4.62B	4.13B
Cash, Cash Equivalents and Short-Term Investments	118.00M	141.00M	210.00M	197.00M	205.00M	478.00M
Total Debt	2.06B	1.94B	1.87B	2.06B	2.13B	2.39B
Total Liabilities	4.40B	4.01B	3.80B	4.19B	4.33B	4.23B
Stockholders Equity	765.00M	681.50M	843.00M	731.00M	274.00M	-115.00M
Cash Flow
Free Cash Flow	-105.08M	-108.11M	169.00M	178.00M	125.00M	152.00M
Operating Cash Flow	294.74M	290.56M	506.00M	451.00M	357.00M	334.00M
Investing Cash Flow	-299.28M	-302.14M	-288.00M	-270.00M	-221.00M	-176.00M
Financing Cash Flow	-70.95M	-58.88M	-182.00M	-163.00M	-435.00M	101.00M

Constellium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 13.36 is above the 20-day moving average (MA) of 13.14, above the 50-day MA of 11.75, and above the 200-day MA of 11.77, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 47.28 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
AA	71 Outperform	$7.37B	8.43	17.53%	1.34%	21.56%	―
CSTM	69 Neutral	$1.91B	29.56	7.93%	―	-2.29%	-48.13%
CENX	67 Neutral	$1.68B	15.92	18.03%	―	11.42%	-49.21%
KALU	67 Neutral	$1.31B	30.27	6.16%	3.80%	1.56%	-22.11%
Sector *	62 Neutral	$9.96B	9.44	-0.15%	2.98%	1.92%	-35.27%
NGVT	54 Neutral	$1.58B	―	-88.14%	―	-17.68%	-214.32%
RDUS	49 Neutral	$835.91M	―	-41.03%	2.53%	-2.75%	-339.59%