Constellium SE Ordinary Shares (France) (CSTM)

FairStock Score: 65/100 — STEADY

Key Financials

Strengths

• Generates $97 million in annual free cash flow (2.3% yield on market cap)
• High return on equity of 32.4% demonstrating efficient capital deployment
• Revenue growth of 40.5% demonstrates strong top-line momentum
• Established organization with 11,500 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($17) with negative 77% margin of safety—limited downside protection
• High leverage at 2.12x debt-to-equity increases financial risk and interest expense burden
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Constellium SE Ordinary Shares (France) is a small-cap basic materials company valued at $4.2 billion. The business generates $8.4 billion in annual revenue with a 1.1% net margin and $97 million in free cash flow. From a quality standpoint, Constellium shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is reasonably priced at 15.8x earnings, with trades above its Graham Number with a negative 77% margin. Growth dynamics show revenue growing at 40.5% and profit growth of 358.0%. Our composite FairStock Score of 65/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Constellium's 41% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $97 million in annual free cash flow (2.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 2.1x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer