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Constellium (CSTM)
NYSE:CSTM
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Constellium
(NYSE:CSTM)
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Rating:64Neutral
Price Target:
$18.00
▼(-9.55% Downside)
Constellium's overall stock score reflects strong earnings performance and positive technical indicators, tempered by high valuation concerns and financial risks due to leverage. The earnings call provided a positive outlook, but challenges in certain market segments and high debt levels remain significant risks.
Positive Factors
Revenue Growth
Constellium's significant revenue growth reflects strong demand and effective market penetration, particularly in packaging and aerospace sectors.
Leadership Transition
The appointment of a seasoned industry leader as CEO is expected to drive strategic growth and operational excellence, enhancing long-term stability.
Cost Management
Effective cost management and cash flow generation bolster financial resilience, supporting sustainable growth and shareholder returns.
Negative Factors
High Debt Levels
High leverage increases financial risk, potentially limiting strategic flexibility and impacting long-term financial health.
Automotive Market Weakness
Weakness in the automotive sector could hinder revenue growth and margin expansion, affecting overall business performance.
Aerospace Segment Challenges
Ongoing supply chain issues in aerospace may constrain growth and operational efficiency, impacting profitability in this key segment.
Constellium (CSTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.69B
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)24.8
Beta (1Y)1.14
Revenue Growth8.48%
EPS Growth12.10%
CountryUS
Employees12,000
SectorBasic Materials
Sector Strength58
IndustryAluminum
Share Statistics
EPS (TTM)0.63
Shares Outstanding137,801,770
10 Day Avg. Volume643,492
30 Day Avg. Volume1,063,269
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)2.12
Price to Sales (P/S)0.20
P/FCF Ratio-12.88
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda6.80
Forecast
1Y Price Target
$19.33Price Target Upside-2.86% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue through the production and sale of aluminum products across its three primary sectors. Its revenue model is built on manufacturing high-value products that cater to specific industry needs, including lightweight components for automotive applications that enhance fuel efficiency and advanced materials for aerospace projects that require high strength and durability. Key revenue streams include sales from rolled and extruded products, as well as specialized solutions and services offered to clients. The company has established significant partnerships with leading automotive manufacturers and aerospace companies, which help ensure a steady demand for its products. Additionally, Constellium benefits from long-term contracts and relationships with customers, providing a stable income source, while also adapting its offerings to meet evolving industry trends and regulations.
Constellium Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and effective cost management, with notable growth in certain segments like packaging. However, challenges remain in the automotive and European markets, and supply chain issues continue to impact the aerospace segment.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Shipments increased by 6% to 373,000 tons compared to Q3 2024, with revenue rising 20% to $2.2 billion. Net income reached $88 million, a significant increase from $8 million in the prior year. Adjusted EBITDA increased 85% to $235 million, marking a new Q3 record.
Successful Cost Management and Cash Flow Generation
Free cash flow in the quarter was strong at $30 million, with $25 million returned to shareholders through share repurchases. Leverage decreased by about 0.5 turn to 3.1x.
Packaging Segment Growth
Packaging shipments increased by 11% in the quarter, showing healthy demand in North America and Europe.
AS&I Segment Performance
Adjusted EBITDA of $33 million increased 371% compared to the third quarter of last year, driven by higher shipments and better mix in the quarter.
Leadership Transition
Ingrid Joerg will take over as CEO, bringing over 25 years of experience in the aluminum industry.
Negative Updates
Automotive Market Weakness
Automotive shipments decreased by 13% in the quarter, with ongoing weakness in both North America and Europe.
Challenging European Market
Continued demand weakness across many end markets in Europe, with industrial markets remaining weak.
Aerospace Segment Challenges
Aerospace shipments were down 9% due to lingering supply chain challenges, although some signs of improvement are noted.
Impact of Higher Metal Prices
Higher metal prices resulted in increased working capital needs, affecting cash flow.
Company Guidance
During the Constellium Third Quarter 2025 Results Conference Call, the company provided updated guidance and reported strong financial metrics that surpassed expectations. Key highlights included a record third quarter adjusted EBITDA of $235 million, representing an 85% increase compared to the same period last year, driven by a positive noncash impact from metal price lag of $39 million. Excluding this impact, adjusted EBITDA was $196 million, up 50% from the previous year. The company also reported a net income of $88 million, a significant increase from $8 million in the prior year. Shipments increased by 6% to 373,000 tons, leading to a 20% rise in revenue to $2.2 billion. Free cash flow was reported at $30 million, contributing to a year-to-date total of $68 million. Constellium returned $25 million to shareholders through share repurchases and reduced leverage to 3.1x. The company raised its 2025 guidance, now targeting an adjusted EBITDA, excluding metal price lag, in the range of $670 million to $690 million, and maintains its free cash flow guidance in excess of $120 million.Constellium Financial Statement Overview
Summary
Constellium shows moderate revenue growth and improved gross margins, but faces challenges with profitability and high leverage. The balance sheet's high debt levels and low equity ratio suggest financial risk, while cash flow issues highlight potential liquidity concerns.Income Statement
Constellium's income statement shows moderate growth with a revenue increase of 4.2% in the TTM period. The gross profit margin improved to 13.8%, indicating better cost management. However, the net profit margin remains low at 0.5%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting pressure on operational efficiency.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.54, indicating significant leverage which could pose financial risks. Return on equity has decreased to 5.2%, reflecting reduced profitability for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing.Cash Flow
Cash flow analysis shows a concerning negative free cash flow, although it has improved by 35.2% in the TTM period. The operating cash flow to net income ratio is 0.14, indicating limited cash generation relative to net income. The negative free cash flow to net income ratio highlights potential liquidity challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.81B | 7.33B | 7.24B | 8.53B | 6.15B | 4.88B |
| Gross Profit | 1.25B | 938.00M | 710.00M | 963.00M | 664.00M | 490.00M |
| EBITDA | 585.75M | 542.00M | 605.00M | 539.00M | 764.00M | 454.00M |
| Net Income | 161.00M | 56.00M | 125.00M | 308.00M | 257.00M | -21.00M |
Balance Sheet | ||||||
| Total Assets | 5.38B | 4.73B | 4.66B | 5.27B | 5.26B | 5.05B |
| Cash, Cash Equivalents and Short-Term Investments | 122.00M | 141.00M | 210.00M | 177.16M | 167.17M | 537.14M |
| Total Debt | 2.13B | 1.94B | 1.87B | 2.19B | 2.42B | 2.93B |
| Total Liabilities | 4.51B | 4.01B | 3.80B | 4.47B | 4.93B | 5.18B |
| Stockholders Equity | 845.00M | 706.00M | 843.00M | 780.16M | 311.59M | -140.71M |
Cash Flow | ||||||
| Free Cash Flow | -99.80M | -112.00M | 66.00M | 186.02M | 125.00M | 152.00M |
| Operating Cash Flow | 267.16M | 301.00M | 432.00M | 472.94M | 357.00M | 334.00M |
| Investing Cash Flow | -261.65M | -318.00M | -219.00M | -285.87M | -221.00M | -176.00M |
| Financing Cash Flow | -55.24M | -56.00M | -174.00M | -168.16M | -435.00M | 101.00M |
Constellium Technical Analysis
Positive
19.90
Price Trends
17.12
Positive
16.00
Positive
14.01
Positive
Market Momentum
0.68
Negative
67.97
Neutral
75.05
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 19.9 is above the 20-day moving average (MA) of 18.58, above the 50-day MA of 17.12, and above the 200-day MA of 14.01, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 67.97 is Neutral, neither overbought nor oversold. The STOCH value of 75.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTM.
Constellium Risk Analysis
Constellium disclosed 9 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.96B | 21.83 | 12.41% | 2.64% | 7.69% | 91.86% | |
70 Outperform | $15.91B | 13.95 | 19.77% | 0.75% | 20.08% | ― | |
69 Neutral | $2.69B | 141.50 | 2.08% | 0.43% | 3.93% | -73.94% | |
64 Neutral | $2.69B | 24.76 | 12.22% | ― | 8.48% | 12.10% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $2.19B | -34.39 | -38.91% | ― | -13.39% | 88.25% | |
56 Neutral | $4.09B | 52.88 | 12.22% | ― | 20.15% | -72.89% |
* Basic Materials Sector Average
CSTM
Constellium
19.90
9.13
84.77%
AA
Alcoa
63.56
28.02
78.84%
MTRN
Materion
134.64
38.05
39.39%
CENX
Century Aluminum
42.23
22.90
118.47%
KALU
Kaiser Aluminum
122.33
54.71
80.91%
NGVT
Ingevity
62.87
25.13
66.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.