CSTM (Update)

Constellium SE - Ordinary Shares - Class A

Industrial/Transportation


Presented:07/25/2022
Price:$14.44
Cap:$2.05B
Current Price:$14.54
Cap:$2.13B

Presented

Date07/25/2022
Price$14.44
Market Cap$2.05B
Ent Value$4.88B
P/E Ratio4.54x
Book Value$4.15
Div Yield0%
Shares O/S141.68M
Ave Daily Vol979,501
Short Int3.42%

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.

Please note, this is an update to Constellium SE (CSTM) – Long, which was first presented on 12/09/2021.

Publicly traded companies mentioned herein: Arconic Corp (ARNC), Ball Corp (BLL), Constellium SE (CSTM), Crown Holdings Inc (CCK)

Highlights

The presenter remains long shares of Constellium SE (CSTM), a $2B market cap producer of rolled and extruded aluminum products for packaging, aerospace, automotive, industrial, and defense customers. The automotive end market is its highest margin business and therefore represents ~1/3 of total EBITDA despite accounting for just ~25% of total revenues. On the back of a great management team and a generally positive outlook for its end markets, the presenter expects CSTM to continue executing well, allowing the company to beat and raise through the rest of the year. Going into 2023, he expects further EBITDA growth and a potential rerating to 7x EBITDA (from the current 5.5x) to drive share price appreciation from today’s $14. 

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