NasdaqGS:CENX

Stock Analysis Report

Executive Summary

Century Aluminum Company, together with its subsidiaries, produces standard-grade and value-added primary aluminum products in the United States and Iceland.

Rewards

Trading at 94.7% below its fair value

Earnings are forecast to grow 111.87% per year

Risk Analysis

Has less than 1 year of cash runway



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Century Aluminum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CENX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

CENX

1.8%

US Metals and Mining

-0.3%

US Market


1 Year Return

-19.3%

CENX

11.7%

US Metals and Mining

18.6%

US Market

Return vs Industry: CENX underperformed the US Metals and Mining industry which returned 11.7% over the past year.

Return vs Market: CENX underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

CENXIndustryMarket
7 Day-1.6%1.8%-0.3%
30 Day-16.7%3.7%2.2%
90 Day22.2%11.1%5.6%
1 Year-19.3%-19.3%15.1%11.7%21.1%18.6%
3 Year-29.0%-29.0%1.9%-3.5%45.6%36.2%
5 Year-68.7%-68.7%30.4%19.9%71.1%52.2%

Price Volatility Vs. Market

How volatile is Century Aluminum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Century Aluminum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CENX ($6.94) is trading below our estimate of fair value ($129.78)

Significantly Below Fair Value: CENX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CENX is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: CENX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CENX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CENX is good value based on its PB Ratio (0.9x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Century Aluminum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

111.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CENX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CENX's is expected to become profitable in the next 3 years.

Revenue vs Market: CENX's revenue (5.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CENX's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CENX's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Century Aluminum performed over the past 5 years?

-26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CENX is currently unprofitable.

Growing Profit Margin: CENX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CENX is unprofitable, and losses have increased over the past 5 years at a rate of -26.6% per year.

Accelerating Growth: Unable to compare CENX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CENX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (0.7%).


Return on Equity

High ROE: CENX has a negative Return on Equity (-20.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Century Aluminum's financial position?


Financial Position Analysis

Short Term Liabilities: CENX's short term assets ($474.1M) exceed its short term liabilities ($212.3M).

Long Term Liabilities: CENX's short term assets ($474.1M) do not cover its long term liabilities ($589.6M).


Debt to Equity History and Analysis

Debt Level: CENX's debt to equity ratio (43.1%) is considered high.

Reducing Debt: CENX's debt to equity ratio has increased from 24.1% to 43.1% over the past 5 years.


Balance Sheet

Inventory Level: CENX has a high level of physical assets or inventory.

Debt Coverage by Assets: CENX's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CENX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CENX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Century Aluminum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CENX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CENX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CENX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CENX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CENX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Century Aluminum's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Mike Bless (54yo)

8.1yrs

Tenure

US$6,491,022

Compensation

Mr. Michael A. Bless, also known as Mike, has been the Chief Executive Officer and President at Century Aluminum Company since November 2011. Previously, Mr. Bless served as Chief Financial Officer of Cent ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.49M) is above average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.4yrs

Average Tenure

44yo

Average Age

Experienced Management: CENX's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

5.9yrs

Average Tenure

54yo

Average Age

Experienced Board: CENX's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: CENX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$413,00012 Nov 19
Michael Bless
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceUS$8.26
SellUS$127,44008 Nov 19
Jesse Gary
EntityIndividual
Role
Chief Operating Officer
COO, Executive VP & General Counsel
Shares15,244
Max PriceUS$8.36
BuyUS$28,90020 Jun 19
Andrew Michelmore
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,000
Max PriceUS$5.78
SellUS$224,00025 Mar 19
Michael Bless
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$8.96

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Bless (54yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$6.49m
  • Morgan Walbridge

    Deputy General Counsel

    • Tenure: 0.7yrs
  • Jesse Gary (39yo)

    COO, Executive VP & General Counsel

    • Tenure: 0.7yrs
    • Compensation: US$2.64m
  • Shelly Harrison (44yo)

    Senior VP of Finance & Treasurer

    • Tenure: 12.8yrs
    • Compensation: US$896.62k
  • John Hoerner (62yo)

    Executive VP of North American Operations

    • Tenure: 5.8yrs
    • Compensation: US$2.04m
  • Peter Trpkovski

    Finance Manager

    • Tenure: 0yrs
  • Craig Conti (41yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$1.14m
  • Elisabeth Indriani

    Global Controller & Principal Accounting Officer

    • Tenure: 1.3yrs

Board Members

  • Andrew Michelmore (66yo)

    Non-Executive Chairman

    • Tenure: 1.2yrs
    • Compensation: US$155.33k
  • Mike Bless (54yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$6.49m
  • Errol Glasser (66yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$218.46k
  • Jarl Berntzen (52yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$221.84k
  • Wilhelm Van Jaarsveld (35yo)

    Independent Director

    • Tenure: 2yrs

Company Information

Century Aluminum Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Century Aluminum Company
  • Ticker: CENX
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: US$604.478m
  • Shares outstanding: 88.89m
  • Website: https://centuryaluminum.com

Number of Employees


Location

  • Century Aluminum Company
  • One South Wacker Drive
  • Suite 1000
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CENXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1996
EY3DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1996

Biography

Century Aluminum Company, together with its subsidiaries, produces standard-grade and value-added primary aluminum products in the United States and Iceland. The company was founded in 1995 and is headquar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:34
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.