Century Aluminum Stock Analysis, Valuation (NASDAQ:CENX)

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$12.32 $0.39 (3.27%) CENX stock closing price Aug 21, 2018 (Closing)

Watch the robo advisor video of Century Aluminum stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for CENX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Century Aluminum Co Stock Rating 3/5

Amigobulls CENX stock analysis uses latest quarter 2018 Q2 financial data like Century Aluminum revenue growth, profit margins and cash flows. Century Aluminum valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Century Aluminum stock rating is our opinion about the business fundamentals of the company.

Should you buy CENX stock?

  • The Year Over Year (YoY) revenue growth for Century Aluminum was 20.9% in 2018-06.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 6.6.
  • With its debt/equity ratio of 0.3, Century Aluminum has a lower debt burden when compared to the Industrial Products average.
  • The Century Aluminum stock currently trades at a price to earnings ratio of 17.4, compared to the sector average of 20.5. We rate this as a positive.
  • When compared with the Industrial Products sector average PS ratio of 1.4, the price-to-sales ratio of 0.6 for CENX stock is attractive.

Should you sell CENX stock?

  • Century Aluminum's TTM operating margin of 5.73 was rather poor.
  • Century Aluminum posted a TTM Net margin of 4.3%.
  • The company has an operating cash flow which is 0.134 times the net income. This is not a healthy sign.
  • The company has a negative free cash flow margin of -1.5.

Comments on this video and Century Aluminum stock

Investors can make use of the Amigobulls Century Aluminum stock analysis to ascertain how CENX stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of CENX stock and helps investors in making good buy and sell decision.

Century Aluminum revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of CENX technical analysis to check whether the fundamental story is reflected in the market sentiment.