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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up 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 $29.8 million.
- CSTM has traded 87,253 shares today.
- CSTM is up 3.5% today.
- CSTM was down 5.1% yesterday.
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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.
The average volume for Constellium has been 630,700 shares per day over the past 30 days. Constellium has a market cap of $2.5 billion and is part of the industrial goods sector and industrial industry. Shares are up 0.2% year-to-date as of the close of trading on Thursday.
rates Constellium as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.
Highlights from the ratings report include:
- Compared to other companies in the Metals & Mining industry and the overall market, CONSTELLIUM NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- CSTM's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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 27.64% over the past year, a rise that has exceeded that of the S&P 500 Index. Although CSTM had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The debt-to-equity ratio is very high at 11.15 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, CSTM's quick ratio is somewhat strong at 1.21, demonstrating the ability to handle short-term liquidity needs.
- The gross profit margin for CONSTELLIUM NV is rather low; currently it is at 15.33%. Regardless of CSTM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CSTM's net profit margin of 3.04% is significantly lower than the industry average.
- You can view the full Constellium Ratings Report.