CONSTELLIUM SE (CSTM) Stock Fundamental Analysis
NYSE:CSTM - New York Stock Exchange, Inc. - FR0013467479 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CSTM. CSTM was compared to 153 industry peers in the Metals & Mining industry. CSTM has a medium profitability rating, but doesn't score so well on its financial health evaluation. CSTM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
CSTM had positive earnings in the past year.
In the past year CSTM had a positive cash flow from operations.
Of the past 5 years CSTM 4 years were profitable.
CSTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CSTM's Return On Assets of 2.06% is fine compared to the rest of the industry. CSTM outperforms 67.97% of its industry peers.
CSTM has a Return On Equity of 10.91%. This is amongst the best in the industry. CSTM outperforms 81.05% of its industry peers.
The Return On Invested Capital of CSTM (6.72%) is better than 70.59% of its industry peers.
CSTM had an Average Return On Invested Capital over the past 3 years of 8.33%. This is in line with the industry average of 8.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 10.91% | ||
| ROIC | 6.72% |
ROA(3y)3.45%
ROA(5y)3.08%
ROE(3y)23.43%
ROE(5y)N/A
ROIC(3y)8.33%
ROIC(5y)8.11%
1.3 Margins
The Profit Margin of CSTM (1.48%) is better than 62.75% of its industry peers.
In the last couple of years the Profit Margin of CSTM has declined.
CSTM has a Operating Margin (4.18%) which is in line with its industry peers.
CSTM's Operating Margin has declined in the last couple of years.
CSTM has a Gross Margin (9.46%) which is in line with its industry peers.
CSTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.18% | ||
| PM (TTM) | 1.48% | ||
| GM | 9.46% |
OM growth 3Y-14.91%
OM growth 5Y-4.66%
PM growth 3Y-43.25%
PM growth 5Y-5.23%
GM growth 3Y6.67%
GM growth 5Y5.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSTM is creating some value.
The number of shares outstanding for CSTM has been reduced compared to 1 year ago.
CSTM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CSTM is higher compared to a year ago.
2.2 Solvency
CSTM has an Altman-Z score of 2.05. This is not the best score and indicates that CSTM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CSTM (2.05) is comparable to the rest of the industry.
The Debt to FCF ratio of CSTM is 17.86, which is on the high side as it means it would take CSTM, 17.86 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.86, CSTM is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
CSTM has a Debt/Equity ratio of 1.97. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.97, CSTM is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 17.86 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.81
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.28 indicates that CSTM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.28, CSTM is doing worse than 77.12% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that CSTM may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, CSTM is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for CSTM have decreased strongly by -31.59% in the last year.
Measured over the past 5 years, CSTM shows a small growth in Earnings Per Share. The EPS has been growing by 3.27% on average per year.
The Revenue has decreased by -6.27% in the past year.
CSTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)-31.59%
EPS 3Y-38.65%
EPS 5Y3.27%
EPS Q2Q%136.36%
Revenue 1Y (TTM)-6.27%
Revenue growth 3Y6.04%
Revenue growth 5Y4.43%
Sales Q2Q%14.33%
3.2 Future
CSTM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 103.89% yearly.
CSTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.70% yearly.
EPS Next Y144.45%
EPS Next 2Y103.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.95%
Revenue Next 2Y13.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.89, CSTM is valued on the expensive side.
Based on the Price/Earnings ratio, CSTM is valued a bit cheaper than the industry average as 79.74% of the companies are valued more expensively.
CSTM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
Based on the Price/Forward Earnings ratio of 6.52, the valuation of CSTM can be described as very cheap.
Based on the Price/Forward Earnings ratio, CSTM is valued cheaper than 94.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CSTM to the average of the S&P500 Index (20.86), we can say CSTM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 6.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSTM is valued cheaply inside the industry as 85.62% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSTM indicates a rather cheap valuation: CSTM is cheaper than 85.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.29 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
CSTM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CSTM may justify a higher PE ratio.
CSTM's earnings are expected to grow with 103.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)6.09
EPS Next 2Y103.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CSTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.14
+0.36 (+3.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners93.48%
Inst Owner Change0.35%
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap1.59B
Analysts84
Price Target17.09 (53.41%)
Short Float %1.21%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.21%
Min EPS beat(2)-61.15%
Max EPS beat(2)10.73%
EPS beat(4)1
Avg EPS beat(4)-46.37%
Min EPS beat(4)-76.87%
Max EPS beat(4)10.73%
EPS beat(8)1
Avg EPS beat(8)-40.69%
EPS beat(12)3
Avg EPS beat(12)2.71%
EPS beat(16)7
Avg EPS beat(16)138.22%
Revenue beat(2)0
Avg Revenue beat(2)-8.28%
Min Revenue beat(2)-9.9%
Max Revenue beat(2)-6.66%
Revenue beat(4)1
Avg Revenue beat(4)-3.1%
Min Revenue beat(4)-9.9%
Max Revenue beat(4)5.74%
Revenue beat(8)2
Avg Revenue beat(8)-2.19%
Revenue beat(12)6
Avg Revenue beat(12)0.32%
Revenue beat(16)10
Avg Revenue beat(16)1.19%
PT rev (1m)-10.67%
PT rev (3m)-8.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-67.64%
EPS NY rev (1m)3.68%
EPS NY rev (3m)-27.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-3.14%
Revenue NY rev (3m)9.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 6.52 | ||
| P/S | 0.22 | ||
| P/FCF | 14.29 | ||
| P/OCF | 3.17 | ||
| P/B | 1.63 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 5.52 |
EPS(TTM)0.56
EY5.03%
EPS(NY)1.71
Fwd EY15.34%
FCF(TTM)0.78
FCFY7%
OCF(TTM)3.51
OCFY31.52%
SpS50.63
BVpS6.86
TBVpS3.02
PEG (NY)0.14
PEG (5Y)6.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 10.91% | ||
| ROCE | 8.5% | ||
| ROIC | 6.72% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 8.36% | ||
| OM | 4.18% | ||
| PM (TTM) | 1.48% | ||
| GM | 9.46% | ||
| FCFM | 1.54% |
ROA(3y)3.45%
ROA(5y)3.08%
ROE(3y)23.43%
ROE(5y)N/A
ROIC(3y)8.33%
ROIC(5y)8.11%
ROICexc(3y)8.79%
ROICexc(5y)8.68%
ROICexgc(3y)9.69%
ROICexgc(5y)9.98%
ROCE(3y)10.54%
ROCE(5y)10.26%
ROICexcg growth 3Y-18.02%
ROICexcg growth 5Y-6.42%
ROICexc growth 3Y-13.61%
ROICexc growth 5Y-3.24%
OM growth 3Y-14.91%
OM growth 5Y-4.66%
PM growth 3Y-43.25%
PM growth 5Y-5.23%
GM growth 3Y6.67%
GM growth 5Y5.15%
F-Score5
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 17.86 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 125.82% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 81.93% | ||
| Profit Quality | 104.25% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.05 |
F-Score5
WACC8.32%
ROIC/WACC0.81
Cap/Depr(3y)117.66%
Cap/Depr(5y)102.03%
Cap/Sales(3y)4.56%
Cap/Sales(5y)4.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.59%
EPS 3Y-38.65%
EPS 5Y3.27%
EPS Q2Q%136.36%
EPS Next Y144.45%
EPS Next 2Y103.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.27%
Revenue growth 3Y6.04%
Revenue growth 5Y4.43%
Sales Q2Q%14.33%
Revenue Next Year14.95%
Revenue Next 2Y13.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.81%
EBIT growth 3Y-9.78%
EBIT growth 5Y-0.44%
EBIT Next Year106.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.78%
OCF growth 3Y-5.53%
OCF growth 5Y-7.6%