Constellium (CSTM) vs. Its Rivals Financial Analysis

Constellium (NYSE:CSTM) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its peers? We will compare Constellium to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, analyst recommendations, risk and earnings.

Volatility and Risk

Constellium has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Constellium’s peers have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Constellium and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellium	5.69%	51.66%	9.63%
Constellium Competitors	-1,174,432,924,478,955,600.00%	67.40%	-2.69%

Institutional and Insider Ownership

92.6% of Constellium shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 1.2% of Constellium shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Constellium and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Constellium	$8.45 billion	$273.00 million	7.14
Constellium Competitors	$4.49 billion	$268.01 million	-19.58

Constellium has higher revenue and earnings than its peers. Constellium is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Constellium and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellium	0	3	4	0	2.57
Constellium Competitors	6262	22306	31867	1736	2.47

Constellium currently has a consensus target price of $35.80, suggesting a potential upside of 29.31%. As a group, “Metals & Mining” companies have a potential upside of 47.22%. Given Constellium’s peers higher probable upside, analysts clearly believe Constellium has less favorable growth aspects than its peers.

Summary

Constellium beats its peers on 9 of the 13 factors compared.

Constellium Company Profile

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of rolled and extruded aluminum products for the packaging, aerospace, automotive, defense, and other transportation and industry end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. This segment also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded aluminium products and aluminium structural components for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and fabricates hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. It sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. The company was incorporated in 2010 and is headquartered in Paris, France.