CSTM

Constellium SE

Industrial/Transportation


Presented:03/18/2021
Price:$15.46
Cap:$2.13B
Current Price:$14.54
Cap:$2.13B

Presented

Date03/18/2021
Price$15.46
Market Cap$2.13B
Ent Value$4.44B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S137.91M
Ave Daily Vol923,453
Short Int0.86%

Current

Price$14.54
Market Cap$2.13B
Constellium SE operates as a holding company with interest in the design and manufacture of a range of specialty rolled, and extruded aluminum products, serving primarily the aerospace, packaging and automotive end-markets. The company operates through the following segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment includes the production of rolled aluminum products. The Aerospace & Transportation segment includes the production of rolled and extruded aluminum products for the aerospace market, as well as rolled products for transport and industry end-uses. The Automotive Structures & Industry segment includes crash-management systems, body structures and side impact beams in Germany, North America and China. The company was founded on May 14, 2010 and is headquartered in Paris, France.

Publicly traded companies mentioned herein: Ball Corp (BLL), Coca-Cola Co/The (KO), Constellium SE (CSTM), Crown Holdings Inc (CCK)

Highlights

The presenter is long shares of Constellium SE (CSTM), which buys slabs of aluminum and rolls them out for use in the manufacturing of cans (40% of revenues), automobiles (27%), aerospace parts (12%), and a mix of other specialties (21%). CSTM’s aerospace segment was hit hard during COVID-19, but the presenter believes the company has passed the trough and will now experience multiple years of real secular growth. Despite this, at $15.50 per share the stock is trading at ~6x consensus EBITDA expectations in out years. Given the ongoing demand within the can market and the presenter’s view on aerospace and automobiles, he believes the stock can easily trade at 10x EBITDA and potentially double over the next two years. 

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Idea Discussion

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