Century Aluminum Company [CENX] – Mismatched value and price: Is it Worth Buying?

Century Aluminum Company [NASDAQ: CENX] opened at $4.64 and closed at $4.35 a share within trading session on 04/30/20. That means that the stock gained by 8.05% compared to the closing price from a day before, when the stock touched $4.70.

Between the start and the closing of the latest trading session, Century Aluminum Company [NASDAQ: CENX] had 2.08 million shares being bought and sold. In the last three months, average trading volumes hovered around 1.77M shares. During the last week, volatility in the share price was set at 7.46%, which placed the metric for the last 30 days at 9.24%. The price of the stock additionally went down to 2.91 during that period and CENX managed to take a rebound to 8.63 in the last 52 weeks.

Century Aluminum Company [NASDAQ:CENX]: Analyst Rating and Earnings

Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Century Aluminum Company [CENX], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in 3/30/2020. On average, stock market experts give CENX an Hold rating. The average 12-month price forecast for this stock is $4.66, with the high estimate being $6.00, the low estimate being $4.00 and the median estimate amounting to $5.00. This is compared to its latest closing price of $4.35.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Century Aluminum Company [CENX] is sitting at 3.67. This is compared to 1 month ago, when its average rating was 3.67.

Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on 07/29/2020.

Fundamental Analysis of Century Aluminum Company [CENX]

Now let’s turn to look at profitability: with a current Operating Margin for Century Aluminum Company [CENX] sitting at -3.90% and its Gross Margin at -1.30%, this company’s Net Margin is now -4.40. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is -7.05, and its Return on Invested Capital has reached -7.74. Its Return on Equity is -11.50%, and its Return on Assets is -5.40%. These metrics suggest that this Century Aluminum Company does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Century Aluminum Company [CENX] has generated a Total Debt to Total Equity ratio of 47.79. Similarly, its Total Debt to Total Capital is 32.34, while its Total Debt to Total Assets stands at 21.51. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 43.26, and its Long-Term Debt to Total Capital is 29.27.

What about valuation? This company’s Enterprise Value to EBITDA is 57.65 and its Total Debt to EBITDA Value is 26.28. The Enterprise Value to Sales for this firm is now 0.35, and its Total Debt to Enterprise Value stands at 0.34. Century Aluminum Company [CENX] has a Price to Book Ratio of 0.99, a Price to Cash Flow Ratio of 37.70.

Century Aluminum Company [CENX] has 82.31M shares outstanding, amounting to a total market cap of 358.05M. Its stock price has been found in the range of 2.91 to 8.63. At its current price, it has moved down by -45.54% from its 52-week high, and it has moved up 61.51% from its 52-week low.

This stock’s Beta value is currently 1.89, which indicates that it is 7.46% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.17. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Century Aluminum Company [CENX] a Reliable Buy?

Shares of Century Aluminum Company [CENX], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.

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Author: Kevin Freeman

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