Skip to main content

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Constellium

(

CSTM

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Constellium as such a stock due to the following factors:

  • CSTM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • CSTM has traded 110,437 shares today.
  • CSTM is down 3.1% today.
  • CSTM was up 5.2% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CSTM with the Ticky from Trade-Ideas. See the FREE profile for CSTM NOW at Trade-Ideas

More details on CSTM:

Constellium N.V. is engaged in the design, manufacture, and sale of specialty rolled and extruded aluminum products. The company operates in three segments: Aerospace & Transportation, Packaging & Automotive Rolled Products, and Automotive Structures & Industry. Currently there are 6 analysts that rate Constellium a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Recommends

The average volume for Constellium has been 580,900 shares per day over the past 30 days. Constellium has a market cap of $1.9 billion and is part of the industrial goods sector and industrial industry. Shares are up 16.6% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Constellium as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.14%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 154.54% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 152.8% when compared to the same quarter one year ago, falling from $45.70 million to -$24.16 million.
  • The gross profit margin for CONSTELLIUM NV is currently extremely low, coming in at 13.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.44% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $102.48 million or 30.09% when compared to the same quarter last year. Despite a decrease in cash flow CONSTELLIUM NV is still fairing well by exceeding its industry average cash flow growth rate of -43.35%.
  • CONSTELLIUM NV has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CONSTELLIUM NV reported lower earnings of $0.59 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $0.59).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null