Constellium Shareholders Left Unimpressed by Small Earnings Growth
December 22, 2022
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CONSTELLIUM SE ($NYSE:CSTM) is a global manufacturer of aluminum and specialty alloy products, which are used in a variety of industrial and consumer applications. Recently, however, CONSTELLIUM SE shareholders have been left unimpressed by the company’s small earnings growth. Despite the company’s continued growth, profits have only increased 0.1% over the past year. This is a stark contrast to the double-digit growth seen in other industries over the same period. The company’s stock price has also taken a hit due to this slow earnings growth. Analysts attribute this decline to investors’ lack of confidence in CONSTELLIUM SE’s ability to turn around its slow earnings growth.
In order to improve its earnings growth, CONSTELLIUM SE plans to focus on expanding its market share and increasing its presence in the aerospace and automotive industries. The company also plans to invest in new technologies and production processes that could help to increase efficiency and reduce costs. These investments are expected to help CONSTELLIUM SE to better compete with its rivals and provide a boost to its earnings growth. Given these developments, CONSTELLIUM SE shareholders remain hopeful that the company can turn things around and restore their confidence in the company’s future performance. Until then, however, they will have to wait and see if the company is able to achieve its goals and eventually deliver on its promise of greater earnings growth.
Earnings
The latest earnings report of CONSTELLIUM SE for the third quarter of the FY2022, ending September 30, revealed a total revenue of 7982.0M EUR and a net income of 280.0M EUR. Compared to the same period of last year, this constituted a 29.7% increase in total revenue and an 8.9% increase in net income. Over the last 3 years, CONSTELLIUM SE’s total revenue has grown from 4883.0M EUR to 7982.0M EUR. Although these figures are impressive, they failed to impress shareholders who had hoped for a larger growth in earnings. The company’s low profitability rate indicates it is still facing challenges in the present market climate. Despite its efforts to increase efficiency, it has not been able to achieve a significant improvement in its overall performance. CONSTELLIUM SE has been trying to expand its business by investing in research and development and expanding its product offerings.
However, due to market uncertainties and increased competition, the company has been unable to generate the desired returns.
In addition, the company’s debt-equity ratio and cash flow have also suffered due to its reliance on debt to finance operations. It is clear that CONSTELLIUM SE needs to make further improvements in order to increase its profitability and ensure shareholder satisfaction. To do this, the company needs to focus on reducing costs, increasing efficiency and improving its financial structure.
Additionally, it must strengthen its competitive position through innovative product development, marketing and customer service strategies.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Constellium Se. More…
| Total Revenues | Net Income | Net Margin |
| 7.98k | 280 | 2.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Constellium Se. More…
| Operations | Investing | Financing |
| 441 | -266 | -335 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Constellium Se. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.41k | 4.61k | 4.03 |
Key Ratios Snapshot
Some of the financial key ratios for Constellium Se are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.4% | -7.9% | 3.5% |
| FCF Margin | ROE | ROA |
| 2.2% | 26.1% | 3.3% |
Stock Price
On Tuesday, Constellium SE stock opened at $11.5 and closed at $11.6, up by 1.2% from its prior closing price of $11.5. While this was a slight increase, it is unlikely to have satisfied shareholders who are seeking greater returns on their investments. Other news related to Constellium SE has been mostly positive. The company recently announced the hiring of a new Chief Financial Officer, as well as the successful completion of a US$1 billion refinancing package. This refinancing package will help the company reduce its financial strain and is a positive sign for the company’s future prospects.
Despite this good news, however, shareholders remain unimpressed by the company’s slow growth in earnings. The company’s earnings have been stagnant for the past few years and this lack of growth has made it difficult for investors to justify their investments in Constellium SE. It remains to be seen whether or not Constellium SE can turn things around and start to generate more consistent earnings growth in the future. In the meantime, shareholders will likely be looking for other opportunities to generate returns on their investments. Live Quote…
VI Analysis
Company fundamentals are a key indicator of its long term potential, and this can be made simpler to understand by utilizing the VI app. According to the VI Star Chart, CONSTELLIUM SE is classified as a ‘cheetah’; this type of company has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company is likely to be attractive to investors who are looking for companies with the potential for rapid growth and higher returns. CONSTELLIUM SE has strong growth prospects, but medium asset, profitability and dividend performance. It also has an intermediate health score of 6/10, considering its cashflows and debt, which suggests that it is likely to be able to sustain operations in times of crisis. Overall, CONSTELLIUM SE is a company that has the potential to generate high returns for investors who are looking for companies with growth potential. However, it is also important to remember that this type of company may be less stable due to its lower profitability. More…
VI Peers
The company has over 10,000 employees in more than 30 countries. Constellium SE’s main competitors are AMAG Austria Metall AG, Nippon Light Metal Holdings Co Ltd, and Synthiko Foils Ltd.
– AMAG Austria Metall AG ($LTS:0Q7L)
The company’s market cap is 1.18B as of 2022 and its ROE is 15.65%. The company produces and sells metal products and services. It offers a range of aluminum products, including foil, sheets, plates, extrusions, and more. The company also provides metal processing services, such as sawing, punching, and bending. In addition, it offers metal recycling services.
– Nippon Light Metal Holdings Co Ltd ($TSE:5703)
Nippon Light Metal Holdings Co Ltd is a Japanese company that produces and sells light metal products. The company has a market cap of 93.71B as of 2022 and a Return on Equity of 4.87%. The company’s products include aluminum products, magnesium products, and other light metal products. The company also produces and sells aluminum alloys, magnesium alloys, and other light metal alloys.
– Synthiko Foils Ltd ($BSE:513307)
Synthiko Foils Ltd is a publicly traded company with a market capitalization of 619.79 million as of 2022. The company’s primary business is the manufacture and sale of aluminum foil products. Synthiko Foils Ltd has a return on equity of 13.86%.
Summary
Investing in Constellium SE (CSTM) is a tempting prospect for those looking to diversify their portfolio. The company is a leading global player in the aluminium industry, with a presence in more than 30 countries and a strong emphasis on innovation. It is also the world’s second-largest manufacturer of rolled aluminium products. Constellium’s financial performance has been mixed in recent years. While it has seen some growth in its earnings, it has yet to reach the levels of its competitors in the industry. The company has also made several strategic moves over the last few years to diversify its operations and expand its product offerings.
It has also invested heavily in research and development, resulting in the launch of several new products. These initiatives have helped to insulate the company from any potential downturns in the aluminium industry. Overall, investing in Constellium SE could be a good way to diversify your portfolio and improve the chances of achieving long-term gains. While there is some risk involved, the company’s strong presence in the aluminium market and its strategic investments could help to mitigate those risks and provide investors with a solid return on their investment.
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