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CENXCentury Aluminum CompanyHold6.5·$46.72+0.71%
HoldModerate Confidence
Investment thesis

The stock's apparent deep value—a 4x forward earnings multiple and 26.7% upside to analyst targets—is undermined by four consecutive earnings misses averaging 14% below consensus, a commodities cycle peak warning that flags mean-reversion risk in forward estimates, negative free cash flow, and 54% revenue concentration in a single customer; the risk profile does not support a position.

Thesis pillars

  • Commodity Cycle Peak Mean Reversion RiskImproving
  • Persistent Earnings Miss PatternDeteriorating
  • Single Customer Revenue ConcentrationImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Century Aluminum Company (CENX) Stock Analysis

Range Bound setup

HoldVALUE-TRAP 1/5GrowthQualityModerate Confidence

Basic Materials · Aluminum

Hold if already holding. Not a fresh buy at $46.72, but acceptable to hold if already in. Reasons: Commodity cycle peak: fwd P/E 3.8× (below 12) + fwd/trail 0.46× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Customer: Glencore (54.0%).

Century Aluminum Company produces primary aluminum at smelters in Robards, Kentucky (Sebree), Goose Creek, South Carolina (Mt. Holly), and Grundartangi, Iceland, with 2025 output of 638,000 tonnes against 770,000 tpy capacity. Revenue is priced on the LME base plus regional... Read more

$46.72+28.3% A.UpsideScore 6.5/10#3 of 4 Aluminum
QualityF-score7 / 9FCF yield-1.01%
Stop $43.45Target $59.92(analyst − 15%)A.R:R 2.1:1
Analyst target$70.50+50.9%4 analysts
$59.92our TP
$46.72price
$70.50mean
$83

Hold if already holding. Not a fresh buy at $46.72, but acceptable to hold if already in. Reasons: Commodity cycle peak: fwd P/E 3.8× (below 12) + fwd/trail 0.46× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Customer: Glencore (54.0%). Chart setup: RSI 54 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 6.5/10, moderate confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 83d clear, semi cycle peak clear). Fails on weak momentum and materials cycle peak fwd=3.8x,ratio=0.46x. Suitability: aggressive.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Nov 5, 202683d to earnings· next earnings call

Thesis

Rewards
Positive news sentiment (+0.67)
Attractive valuation
Strong growth profile
Risks
Commodity cycle peak: fwd P/E 3.8× (below 12) + fwd/trail 0.46× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.
Concentration risk — Customer: Glencore (54.0%)
Consecutive earnings misses (3)

Key Metrics

P/E (TTM)8.3
P/E (Fwd)3.8
Mkt Cap$4.6B
EV/EBITDA10.1
Profit Mgn22.6%
ROE51.7%
Rev Growth19.7%
Beta2.00
DividendNone
Rating analysts11

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C0.24bullish
IV85%elevated

Concentration Risks(10-K Item 1A)

  • HIGHCustomerGlencore54%
    10-K Item 1A: 'we derived approximately 54.0% of our consolidated net sales from Glencore'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·2 ceiling hits

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
0.0
Erm
5.0
Earnings Timing
5.0
News Activity
5.0
Earnings concerns: 1B/3M

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.0
Value Rank
2.5
Quality Rank
6.3
GatesMomentum 4.2<4.5MATERIALS CYCLE PEAK fwd=3.8x,ratio=0.46xA.R:R 2.1 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 83d clearSEMI CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
54 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $40.40Resistance $55.55

Price Targets

$43
$60
A.Upside+28.3%
A.R:R2.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! momentum at 4.2 (below the engine's 4.5 threshold)
! MATERIALS_CYCLE_PEAK:fwd=3.8x,ratio=0.46x

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-11-05 (83d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CENX stock a buy right now?

Hold if already holding. Not a fresh buy at $46.72, but acceptable to hold if already in. Reasons: Commodity cycle peak: fwd P/E 3.8× (below 12) + fwd/trail 0.46× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Customer: Glencore (54.0%). Chart setup: RSI 54 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $59.92 (+28.3%), stop $43.45 (−7.5%), A.R:R 2.1:1. Score 6.5/10, moderate confidence.

What is the CENX stock price target?

Take-profit target: $59.92 (+28.3% upside). Target $59.92 (+28.3%), stop $43.45 (−7.5%), A.R:R 2.1:1. Stop-loss: $43.45.

What are the risks of investing in CENX?

Commodity cycle peak: fwd P/E 3.8× (below 12) + fwd/trail 0.46× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Customer: Glencore (54.0%); Consecutive earnings misses (3).

Is CENX overvalued or undervalued?

Century Aluminum Company trades at a P/E of 8.3 (forward 3.8). TrendMatrix value score: 9.0/10. Verdict: Hold.

What do analysts say about CENX?

11 analysts cover CENX with a consensus score of 4.1/5. Average price target: $71.

What does Century Aluminum Company do?Century Aluminum Company produces primary aluminum at smelters in Robards, Kentucky (Sebree), Goose Creek, South...

Century Aluminum Company produces primary aluminum at smelters in Robards, Kentucky (Sebree), Goose Creek, South Carolina (Mt. Holly), and Grundartangi, Iceland, with 2025 output of 638,000 tonnes against 770,000 tpy capacity. Revenue is priced on the LME base plus regional premiums; 54% of 2025 sales went to Glencore plc.

Related stocks: CSTM (Constellium SE) · AA (Alcoa Corporation) · KALU (Kaiser Aluminum Corporation) · HL (Hecla Mining Company) · IAG (Iamgold Corporation)
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