CSTM
Constellium N.V.
Industrial/Transportation
01/29/2018
Presented
| Date | 01/25/2018 |
| Price | $13.15 |
| Market Cap | $1.43B |
| Ent Value | $3.44B |
| P/E Ratio | 40.67x |
| Book Value | N/A |
| Div Yield | 0% |
| Shares O/S | 108.82M |
| Ave Daily Vol | 1,763,186 |
| Short Int | 0.41% |
Current
| Price | $14.54 |
| Market Cap | $2.13B |
| Constellium NV 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 three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment includes the production of rolled aluminum products. It supplies the packaging market with can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. It also supplies products for a number of technically sophisticated applications such as automotive sheet, heat exchangers, and sheet and coils for the building and constructions markets. 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. It produces aluminum plate, sheet and fabricated products in its European and North American facilities. The Automotive Structures & Industry segment includes crash-management systems, body structures and side impact beams in Germany, North America and China. It also fabricates hard and soft aluminum alloy extruded profiles. Its products are targeted at end-used in the automotive, engineering, building and construction and other transportation markets i.e. rail and shipbuilding. The company was founded on May 14, 2010 and is headquartered in Schiphol-Rijk, The Netherlands. |
Publicly traded companies mentioned herein: Constellium NV (CSTM)
Highlights
The presenter is long shares of Constellium (CSTM), seeing a good buying opportunity in the “sweet spot” of the aluminum product manufacturer’s investment cycle. He believes FCF will start ramping over 2019 – 2020 as the current capex cycle rolls off and the company de-levers. The new capacity will be accompanied by some capacity mix-shift that will drive higher margins. He believes that the story is underappreciated by investors and sell-side due to poor operations and strategic execution from the last generation of management. He sees 60% upside to CSTM shares in two years’ time targeting a mid/high-teens share price by year-end 2018, from $13 today.
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