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Friday, October 30, 2020

Century Aluminum Company (NASDAQ:CENX) on the Path to Profitability

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Century Aluminum Company (CENX) shares are trading at higher $10.51 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $7.00.

To add more color to this target, the company’s high over the last year is $11.33 and the low is $2.91. Over the last 52 weeks, CENX is up 49.08% while the S&P 500 is up 12.41%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CENX reported a profit of $-13.0 million. Century Aluminum Company also saw revenues decrease to $401.9 million. In addition, CENX has free cash flow of $62.0 million as of 06-2020. The company’s EBITDA came in at -$4.8 million which compares well with its peers.

CENX booked profit margins of -3.20%, its Return on Equity (ROE) is -8.20%, and its Return on Assets is -3.60%. All told, it is clear that, CENX needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CENX has a short ratio of 2.36 and outstanding shares of 89.50M.

Company Outlook

CENX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.92 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.62. Century Aluminum Company CENX also noted assets of $1.52 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CENX has historically followed its peers on positive news.

All told, Century Aluminum Company CENX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CENX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Century Aluminum Company CENX is now commanding a market cap of 929.82M and a float of 50.31M. CENX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CENX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CENX, either long or short, and we have not been compensated for this article.

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