TheStreet Ratings team rates CENTURY ALUMINUM CO as a Hold with a ratings score of C-. The team has this to say about their recommendation:
"We rate CENTURY ALUMINUM CO (CENX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 31.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.48% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- CENX's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
- The gross profit margin for CENTURY ALUMINUM CO is currently extremely low, coming in at 8.07%. Regardless of CENX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CENX's net profit margin of -2.37% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to $19.48 million or 14.17% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CENTURY ALUMINUM CO has marginally lower results.
- You can view the full analysis from the report here: CENX Ratings Report