Century Aluminum Stock Fair Value – $8.90
April 28, 2023
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Century Aluminum ($NASDAQ:CENX) is a leading producer of primary aluminum in the United States, with three primary aluminum smelters located in Hawesville, Kentucky, and Sebree, Kentucky, and Mt. Holly, South Carolina. The company produces a wide range of products, including aluminum billet, rolled products, castings and custom extrusions. Century Aluminum’s share price took a dive on Friday, dropping by 5%, trading as low as $8.89 and closing at $9.08. The steep decline in the stock’s share price can be attributed to a variety of factors including global trade tensions, macroeconomic uncertainty, and slowing demand for aluminum products. In particular, the recent escalation in trade tensions between the United States and China has weighed on the aluminum industry, with demand for primary aluminum expected to remain muted in the near term.
Additionally, weak economic data from several countries has caused investors to retreat from higher risk investments like stocks and commodities. It’s likely that this bearish trend will continue in the near term given the current market conditions, making it important for investors to exercise caution when considering Century Aluminum stock.
Price History
This was a significant change from its opening price of $8.7 on Monday, with a day-over-day increase of 0.9% from the previous trading day’s closing price of 8.8. Despite the slight gains made early in the week, CENTURY ALUMINUM‘s share price plummeted on the last day of trading. Investors were likely disappointed by the sudden drop in stock price, with the company’s stock closing lower than it had opened at earlier in the week. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Century Aluminum. More…
| Total Revenues | Net Income | Net Margin |
| 2.78k | -14.1 | -1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Century Aluminum. More…
| Operations | Investing | Financing |
| 25.9 | -85.5 | 74.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Century Aluminum. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.47k | 1.07k | 4.32 |
Key Ratios Snapshot
Some of the financial key ratios for Century Aluminum are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.8% | -16.8% | 2.3% |
| FCF Margin | ROE | ROA |
| -2.2% | 8.6% | 2.7% |
Analysis – Century Aluminum Stock Fair Value
At GoodWhale, we use our proprietary valuation system to help investors analyze the fundamentals of CENTURY ALUMINUM. Our Valuation Line estimates the fair value of CENTURY ALUMINUM share to be $15.1. Currently, the stock is traded at $8.8, which is 41.6% below its fair value. This means that CENTURY ALUMINUM is currently undervalued, offering investors a great buying opportunity. More…
Peers
The company’s main competitors are Tianshan Aluminum Group Co Ltd, Noranda Aluminum Holding Corp, and Nanjing Yunhai Special Metals Co Ltd.
– Tianshan Aluminum Group Co Ltd ($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 is a metal producer with a focus on aluminum. On Friday, the company’s stock price had a significant decline of 5% during mid-day trading. The lowest traded price for the day was $8.89, with the stock price closing at a lower level than the opening price.
This drop could indicate that investors are uncertain about the company’s performance and future profitability. Investors should take this opportunity to analyze the company’s fundamentals and any potential risks that may be associated with it before investing in Century Aluminum.
