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

Century Aluminum

(

CENX

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

  • CENX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.5 million.
  • CENX has traded 102,807 shares today.
  • CENX is down 8.7% today.
  • CENX was up 21.8% yesterday.

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

More details on CENX:

Century Aluminum Company, together with its subsidiaries, produces primary aluminum in the United States and Iceland. It produces standard grade and value-added primary aluminum products; and carbon products, such as anodes and cathodes. CENX has a PE ratio of 7. Currently there are 2 analysts that rate Century Aluminum a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Century Aluminum has been 2.3 million shares per day over the past 30 days. Century Aluminum has a market cap of $714.3 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.57 and a short float of 40.6% with 3.58 days to cover. Shares are down 78.8% 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 Century Aluminum as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 16.2%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CENX's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that CENX's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
  • Net operating cash flow has significantly decreased to -$5.95 million or 130.72% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 266.6% when compared to the same quarter one year ago, falling from $20.34 million to -$33.90 million.

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.