Century Aluminum Intrinsic Value Calculation – CENTURY ALUMINUM Set for Major Gains as Market Trends and Tailwinds Boost Profits

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Century Aluminum ($NASDAQ:CENX) Company is set for major gains as the market trends and tailwinds on the horizon are predicted to boost profits for the company. Century Aluminum, based in Chicago, is a leading producer of primary aluminum and operates five smelters in the United States, Iceland and the United Kingdom. Their main products are aluminum ingots, billets, sows, and other derivatives. The company’s recent initiatives to focus on efficiency and environmental stewardship have resulted in an increased demand for their products. With the global economy on the upturn, Century Aluminum is in a prime position to benefit from the positive market trends and tailwinds. Rising demand for aluminum products, coupled with an increase in production capacity and cost reduction measures, is expected to result in higher profits for the company.

The current environment of low interest rates and the potential for further stimulus measures could further boost growth prospects for the company. The market trend of metal commodity pricing is also forecast to drive increased demand for Century Aluminum’s products. Commodity prices have been moving higher due to increased demand from emerging markets. This means that Century Aluminum will benefit from higher prices for its aluminum products as well as increased sales volumes. The company’s strategies for efficiency and environmental stewardship has positioned them well for long-term growth, making it a great investment opportunity for both short and long-term investors.

Market Price

Monday was a good day for CENTURY ALUMINUM, with the stock opening at $8.7 and closing at $8.8, up 0.9% from its previous closing price. These trends are expected to continue in the future, as investments in aluminum production and demand for strong infrastructure grows. These factors are likely to drive further gains for CENTURY ALUMINUM, positioning the company for success in the near and long-term future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Century Aluminum. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Century Aluminum. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Century Aluminum. More…

Key Ratios Snapshot

Some of the financial key ratios for Century Aluminum are shown below. More…

Analysis – Century Aluminum Intrinsic Value Calculation

At GoodWhale, we believe that understanding a company’s financial health is one of the most important components of making an educated investment decision. After conducting a thorough analysis of CENTURY ALUMINUM, we have determined the intrinsic value of the stock to be around $15.1. This value was calculated using our proprietary Valuation Line, which takes into account elements such as financial reports and stock performance to reach an accurate assessment. Currently, CENTURY ALUMINUM’s stock is being traded at $8.8, marking a significant 41.6% discount from its intrinsic value. We believe that this presents a great opportunity for investors to enter the market at a discounted rate and, depending on their risk appetite, potentially benefit from future growth and returns. More…

Peers

The company’s main competitors are Tianshan Aluminum Group Co Ltd, Noranda Aluminum Holding Corp, and Nanjing Yunhai Special Metals Co Ltd.

– Tianshan Aluminum Group Co Ltd ($SZSE:002532)

Tianshan Aluminum Group Co Ltd is a Chinese aluminum producer. The company has a market cap of 30.98B as of 2022 and a Return on Equity of 16.7%. Tianshan Aluminum Group Co Ltd produces aluminum products for a variety of industries including construction, transportation, and packaging. The company has a strong presence in China and also exports its products to over 50 countries around the world.

– Noranda Aluminum Holding Corp ($OTCPK:NORNQ)

Noranda Aluminum Holding Corp is a Canada-based company that is engaged in the production of aluminum products. The Company operates through two segments: primary aluminum and alumina. The Company’s primary aluminum segment smelts and refines primary aluminum. The Company’s alumina segment mines, refines and markets alumina. The Company’s products include primary aluminum, alumina, aluminum fluoride, aluminum chloride and sodium aluminum fluoride.

– Nanjing Yunhai Special Metals Co Ltd ($SZSE:002182)

Nanjing Yunhai Special Metals Co Ltd is a Chinese company that manufactures and sells specialty metals. It has a market capitalization of 14.83 billion as of 2022 and a return on equity of 18.83%. The company produces a variety of metals such as titanium, zirconium, nickel, and tungsten. It also manufactures and sells a variety of products made from these metals, such as pipes, tubing, and fittings. The company has a strong presence in China and Asia, and its products are used in a variety of industries including aerospace, chemical processing, and oil and gas.

Summary

Century Aluminum Company is an attractive investment opportunity due to its strong market trends, favorable tailwinds, and solid fundamentals. The company’s outlook is bolstered by increasing demand for aluminum products, particularly in the automotive and construction industries.

Additionally, Century Aluminum has been able to benefit from rising aluminum prices, driven by supply-side restrictions from China. The company is also well-positioned to benefit from the recent US-China trade agreement, as it allows for greater aluminum export into China. Century Aluminum has seen its share price increase significantly over the past year, and analysts are optimistic that the stock will continue to see strong gains in the coming months. The company’s strong financial position, with a low debt-to-equity ratio, gives it the ability to take advantage of any further upside opportunities. Overall, Century Aluminum is an attractive investment opportunity due to its strong market trends and favorable tailwinds.