Century Aluminum Company

Valuation Analysis

About the Company

Century Aluminum Company, together with its subsidiaries, produces primary aluminum and alumina in the United States and Iceland. The company engages in the production of standard-grade and value-added primary aluminum products. It also owns and operates a carbon anode production facility in Vlissingen, the Netherlands; and operates aluminum reduction facilities or smelters; and bauxite mining and alumina refining in Jamaica. The company was founded in 1995 and is headquartered in Chicago, Illinois.

Century Aluminum Company Stock at a Glance

Century Aluminum Company (CENX) is currently trading at $61.19 with a market capitalization of $6.1B. The trailing P/E ratio stands at 18.21x, with a forward P/E of 4.47x. The 52-week range spans from $16.59 to $70.43; the current price is 13.1% below the yearly high. Year-over-year revenue growth stands at +2.4%. The net profit margin stands at 13.68%.

💰 Dividend

Century Aluminum Company currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

3 analysts rate Century Aluminum Company (CENX) on consensus: Strong Buy. The average price target is $81.33, implying +32.92% from the current price. Analyst price targets range from $75.00 to $86.00.

Century Aluminum Company: The Investment Case in Detail

Century Aluminum Company (CENX) operates in the Basic Materials — specifically Aluminum — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 1009.8% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Return on equity of 32.26% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Wall Street consensus sits at Strong Buy with an average price target implying roughly 32.92% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue growth has slowed to just 2.4%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a beta near 1.92, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves. Short interest sits at 11.71% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.06, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 4.47x is meaningfully below the trailing 18.21x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 32.92% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to above-average price swings, elevated short interest (11.71%).

Trading Data

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