Century Aluminum Company Fundamental Analysis (NASDAQ: CENX)
Century Aluminum Company (NASDAQ: CENX) shows strong financial fundamentals with a PE ratio of 7.13, profit margin of 22.63%, and ROE of 58.57%. The company generates $2.7B in annual revenue with strong year-over-year growth of 13.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CENX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCENX demonstrates superior asset utilization.
Valuation Score
ExcellentCENX trades at attractive valuation levels.
Growth Score
ModerateCENX shows steady but slowing expansion.
Financial Health Score
ExcellentCENX maintains a strong and stable balance sheet.
Profitability Score
ExcellentCENX achieves industry-leading margins.
Key Financial Metrics
Is CENX Expensive or Cheap?
P/E Ratio
CENX trades at 7.13 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CENX's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Century Aluminum Company at 3.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.82 times EBITDA. This is generally considered low.
How Well Does CENX Make Money?
Net Profit Margin
For every $100 in sales, Century Aluminum Company keeps $22.63 as profit after all expenses.
Operating Margin
Core operations generate 14.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.57 in profit for every $100 of shareholder equity.
ROA
Century Aluminum Company generates $20.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Century Aluminum Company produces operating cash flow of $339.31M, showing steady but balanced cash generation.
Free Cash Flow
Century Aluminum Company produces free cash flow of $151.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.53 in free cash annually.
FCF Yield
CENX converts 3.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How CENX Stacks Against Its Sector Peers
| Metric | CENX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.13 | 27.37 | Better (Cheaper) |
| ROE | 58.57% | 1190.00% | Weak |
| Net Margin | 22.63% | 204.00% | Weak |
| Debt/Equity | 0.34 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.75 | 3.14 | Strong Liquidity |
| ROA | 20.99% | 2758.00% | Weak |
CENX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Century Aluminum Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.63%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
132.21%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
306.62%
Industry Style: Cyclical, Commodity, Value
High Growth