2024-09-03 06:38:42 ET
Summary
- Century Aluminum's Q1 net income was driven by a one-time gain, not ongoing profitability, making its current valuation misleading.
- The company’s operations are highly sensitive to aluminum prices and raw material costs, posing significant risks.
- Century Aluminum's heavy reliance on a single customer and lack of cash reserves limit its flexibility and growth potential.
- Despite recent optimism, without a clear catalyst, the stock is overvalued compared to industry peers and is best viewed as a hold.
With a surprise net income in the first quarter, Century Aluminum (CENX) has shown up on a lot of stock screens lately, with the company having a single digit P/E ratio after years of unprofitability....
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Century Aluminum Remains Sensitive To Highly Competitive Market
