Century Aluminum Stock Fair Value Calculator – Century Aluminum Leveraging High Levels of Debt to Grow Business

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Century Aluminum Stock Fair Value Calculator – Century Aluminum ($NASDAQ:CENX) is a leading producer of primary aluminum products in the United States. The company is known for its innovative approach to production and has a long history of success. Evidence from four measures suggests Century Aluminum is leveraging significant amounts of debt to grow its business. These measures include debt-to-assets ratio, debt-to-equity ratio, debt-to-capital ratio, and times-interest-earned ratio.

All of these ratios indicate the company’s ability to manage its debt and leverage it to finance operations. The company has been successful at managing its debt and using it to finance operations, which has allowed it to become a major player in the aluminum industry. As Century Aluminum continues to leverage its debt, it will be interesting to see how the company continues to grow and develop in the future.

Market Price

This has produced mixed results and news sentiment towards the company is mostly neutral. On Tuesday, Century Aluminum‘s stock opened at $9.9 and closed at $10.5, up by 4.7% from its prior closing price of 10.0. The company’s decision to use this financial strategy has been a source of debate, with some analysts and investors feeling that it is a risky move. Others feel that the company’s focus on reducing its debt load has been successful and that the debt-to-equity ratio has been maintained and is now lower than it was a few years ago. The company’s goal is to become more competitive in the aluminum industry by utilizing high levels of debt and increasing market share.

This is seen as a way to gain an edge on competitors and create more value for shareholders. While the strategy has been seen as a positive step, some investors are concerned about the possibility that the company may not be able to pay back the debt in a timely manner. Whether this strategy will ultimately be successful remains to be seen, but it is clear that the company is taking a risk in order to position itself for success in the 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…

VI Analysis – Century Aluminum Stock Fair Value Calculator

Century Aluminum is a company whose fundamentals reflect its long-term potential. VI app makes it easy to analyze its performance and make informed decisions. According to VI Line, the fair value of Century Aluminum’s shares is around $15.6, meaning that the stock is currently undervalued by 33%, trading at $10.5. This presents an opportunity for investors to buy the stock at a discounted price and potentially benefit from its future appreciation. Analyzing the company’s financials, such as its cash flow, balance sheet, and income statement, can help investors understand the company’s long-term prospects and make an informed decision. Additionally, keeping an eye on the industry trends and macroeconomic environment can also help investors determine if Century Aluminum is a good investment in the long run. More…

VI 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 company that has leveraged high levels of debt to grow their business. At the time of writing, news sentiment surrounding the company is mostly neutral. Despite this, the stock price of Century Aluminum has moved up on the same day. This suggests that investors are optimistic about the company’s financial performance.

Analysts suggest that investors should assess Century Aluminum’s financials, cash flows, and debt levels when deciding whether to invest in the company. It is important to remember that investing involves risk and returns are never guaranteed.