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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
113.3%
Sector: 3.3%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, CONSTELLIUM SE (CSTM) receives a "Hold" rating with a composite score of 53.3/100, ranked #279 out of 4446 stocks. Key factor scores: Quality 50/100, Value 73/100, Momentum 74/100. This is quantitative analysis only — not investment advice.
CONSTELLIUM SE (CSTM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CONSTELLIUM SE Do?
Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products for the packaging, aerospace, and automotive end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. It also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded products and technologically advanced structures for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. The company sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. Constellium SE was incorporated in 2010 and is headquartered in Paris, France. CONSTELLIUM SE (CSTM) is classified as a mid-cap stock in the Materials sector, specifically within the Steel Works industry. The company is led by CEO Jean-Marc Germain and employs approximately 12,000 people. With a market capitalization of $3.7B, CSTM is one of the notable companies in the Materials sector.
CONSTELLIUM SE (CSTM) Stock Rating — Hold (April 2026)
As of April 2026, CONSTELLIUM SE receives a Hold rating with a composite score of 53.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CSTM ranks #279 out of 4,446 stocks in our coverage universe. Within the Materials sector, CONSTELLIUM SE ranks #14 of 284 stocks, placing it in the top 10% of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CSTM Stock Price and 52-Week Range
CONSTELLIUM SE (CSTM) currently trades at $29.61. The stock gained $0.14 (0.5%) in the most recent trading session. The 52-week high for CSTM is $27.41, which means the stock is currently trading 8.0% from its annual peak. The 52-week low is $7.33, putting the stock 304.3% above its annual trough. Recent trading volume was 1.5M shares, reflecting moderate market activity.
Is CSTM Overvalued or Undervalued? — Valuation Analysis
CONSTELLIUM SE (CSTM) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 15.11x, compared to the Materials sector average of 26.50x — a discount of 43%. The price-to-book ratio stands at 3.77x, versus the sector average of 2.83x. The price-to-sales ratio is 0.11x, compared to 0.74x for the average Materials stock. On an enterprise value basis, CSTM trades at 2.24x EV/EBITDA, versus 6.01x for the sector.
Based on these multiples, CONSTELLIUM SE appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
CONSTELLIUM SE Profitability — ROE, Margins, and Quality Score
CONSTELLIUM SE (CSTM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 113.3%, compared to the Materials sector average of 3.3%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 20.5% versus the sector average of 0.6%.
On a margin basis, CONSTELLIUM SE reports gross margins of 14.5%, compared to 29.8% for the sector. The operating margin is 4.8% (sector: 6.0%). Net profit margin stands at 3.3%, versus 3.0% for the average Materials stock. Revenue growth is running at 20.2% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CSTM Debt, Balance Sheet, and Financial Health
CONSTELLIUM SE has a debt-to-equity ratio of 451.0%, compared to the Materials sector average of 41.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.29x, suggesting adequate working capital coverage. Cash and equivalents stand at $122M.
CSTM has a beta of 1.36, meaning it is more volatile than the broader market — a $10,000 investment in CSTM would be expected to move 35.5% more than the S&P 500 on any given day. The stability factor score for CONSTELLIUM SE is 41/100, reflecting average volatility within the normal range for its sector.
CONSTELLIUM SE Revenue and Earnings History — Quarterly Trend
In TTM 2026, CONSTELLIUM SE reported revenue of $8.45B and earnings per share (EPS) of $1.95. Net income for the quarter was $275M. Operating income came in at $408M.
In FY 2025, CONSTELLIUM SE reported revenue of $8.45B and earnings per share (EPS) of $1.95. Net income for the quarter was $275M. Revenue grew 15.2% year-over-year compared to FY 2024. Operating income came in at $408M.
In Q3 2025, CONSTELLIUM SE reported revenue of $2.17B and earnings per share (EPS) of $0.63. Net income for the quarter was $88M. Gross margin was 14.5%. Operating income came in at $133M.
In Q2 2025, CONSTELLIUM SE reported revenue of $2.10B and earnings per share (EPS) of $0.25. Net income for the quarter was $36M. Operating income came in at $56M.
Over the past 8 quarters, CONSTELLIUM SE has experienced revenue contraction from $8.69B to $8.45B. Investors analyzing CSTM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CSTM Dividend Yield and Income Analysis
CONSTELLIUM SE (CSTM) does not currently pay a dividend. This is common among smaller companies in the Steel Works industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Materials dividend stocks may want to explore other Materials stocks or use the stock screener to filter by dividend yield.
CSTM Momentum and Technical Analysis Profile
CONSTELLIUM SE (CSTM) has a momentum factor score of 74/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 23/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CSTM vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing CSTM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CSTM vs S&P 500 (SPY) comparison to assess how CONSTELLIUM SE stacks up against the broader market across all factor dimensions.
CSTM Next Earnings Date
No upcoming earnings date has been announced for CONSTELLIUM SE (CSTM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CSTM? — Investment Thesis Summary
CONSTELLIUM SE presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 74/100, suggesting the trend favors buyers.
In summary, CONSTELLIUM SE (CSTM) earns a Hold rating with a composite score of 53.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CSTM stock.
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Institutional Research Dossier
CONSTELLIUM SE (CSTM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Constellium SE (CSTM) receives a Hold rating, driven by a mixed financial profile. While the company exhibits strong value characteristics and impressive revenue growth relative to its sector, concerns arise from its high debt levels, volatile free cash flow history, and relatively low profitability metrics compared to its peers. The current valuation appears reasonable, but the inherent risks associated with the cyclical nature of the aluminum industry and Constellium's capital allocation decisions warrant a cautious approach.
The company's strategic focus on specialty rolled and extruded aluminum products for high-value end-markets like aerospace and automotive provides a degree of resilience, but its ability to consistently generate free cash flow and improve its capital structure will be critical for sustained long-term performance. Investors should closely monitor the company's debt reduction efforts, margin expansion initiatives, and its ability to navigate the fluctuating aluminum prices and global economic conditions.
Business Strategy & Overview
Constellium operates as a global leader in the design, manufacture, and sale of advanced aluminum products, primarily serving the packaging, aerospace, and automotive industries. The company's business is structured around three key segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. This diversified approach allows Constellium to cater to a wide range of customer needs and mitigate risks associated with over-reliance on any single end-market.
The Packaging & Automotive Rolled Products segment focuses on producing aluminum sheets for beverage cans, food packaging, and automotive body panels. This segment benefits from the increasing demand for lightweight and sustainable packaging solutions, as well as the growing adoption of aluminum in automotive manufacturing to improve fuel efficiency and reduce emissions. Constellium's strategic partnerships with major beverage and automotive companies provide a stable revenue stream and opportunities for further growth.
The Aerospace & Transportation segment supplies high-strength aluminum alloys for aircraft structures, including wing skins and fuselage components. This segment is characterized by stringent quality requirements and long-term contracts with leading aerospace manufacturers. Constellium's expertise in developing advanced aluminum alloys and its established relationships with key players in the aerospace industry provide a competitive advantage. The cyclical nature of the aerospace industry, however, can impact the segment's performance.
The Automotive Structures & Industry segment offers extruded aluminum products and advanced structural components for automotive applications, such as crash-management systems and battery enclosures for electric vehicles. This segment is experiencing rapid growth due to the increasing demand for lightweight and high-performance materials in the automotive industry. Constellium's focus on innovation and its ability to provide customized solutions for its customers are key drivers of its success. The company also provides downstream technology and services, including pre-machining and surface treatment, further enhancing its value proposition.
Constellium's strategic focus on innovation, customer collaboration, and operational excellence is aimed at strengthening its market position and driving long-term growth. The company invests in research and development to develop new aluminum alloys and manufacturing processes that meet the evolving needs of its customers. Its global presence and its ability to serve customers in key markets, including Europe, North America, and Asia, provide a competitive advantage.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
20.2%
Sector: 1.8%
+1054% VS SCTR
Economic Moat Analysis
Constellium's economic moat can be classified as Narrow. While the company possesses certain competitive advantages, they are not strong enough to create a wide and sustainable moat. The primary sources of Constellium's moat are its intangible assets, specifically its proprietary aluminum alloys and manufacturing processes, and to a lesser extent, switching costs for certain customers.
The company's expertise in developing advanced aluminum alloys for specific applications, such as aerospace and automotive, creates a barrier to entry for competitors. These alloys often require significant research and development investments and specialized manufacturing capabilities. Constellium's intellectual property, including patents and trade secrets, protects its proprietary technologies and provides a competitive edge. However, the aluminum industry is characterized by ongoing innovation, and competitors are constantly developing new alloys and processes, which limits the durability of Constellium's intangible assets.
Switching costs are relatively low for many of Constellium's customers, particularly in the packaging and automotive rolled products segments. While some customers may have specific requirements that make it more difficult to switch suppliers, the availability of alternative aluminum suppliers and the standardization of certain products limit the extent of switching costs. In the aerospace segment, switching costs are higher due to the stringent quality requirements and long-term contracts, but these advantages are offset by the cyclical nature of the industry and the intense competition among aluminum suppliers.
Constellium does not possess significant cost advantages or efficient scale. The aluminum industry is characterized by high capital intensity and significant energy costs, which limit the ability of any single company to achieve a sustainable cost advantage. While Constellium has invested in modernizing its manufacturing facilities and improving its operational efficiency, its cost structure is comparable to that of its major competitors.
The company does not benefit from network effects. The value of Constellium's products and services does not increase as more customers use them. The company's competitive advantage is primarily based on its ability to develop and manufacture high-quality aluminum products that meet the specific needs of its customers.
In conclusion, Constellium's narrow moat is based on its intangible assets and limited switching costs. While these advantages provide a degree of protection against competition, they are not strong enough to create a wide and sustainable moat. The company's ability to maintain its competitive edge will depend on its continued investment in innovation and its ability to adapt to the evolving needs of its customers.
Financial Health & Profitability
Constellium's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with TTM revenue of $8.45 billion representing a 20.2% increase compared to the sector average of 1.5%. This growth is commendable and indicates the company's ability to capture market share and benefit from favorable industry trends. However, the company's profitability metrics, such as gross margin (14.5%) and operating margin (4.8%), lag behind the sector averages of 30.2% and 6.0%, respectively. This suggests that Constellium may be facing challenges in controlling its costs or that its product mix is less profitable than that of its competitors.
The company's ROE of 113.3% is exceptionally high compared to the sector average of 2.7%. However, this figure is likely inflated by the company's high leverage, as evidenced by its debt-to-equity ratio of 451.00, which is significantly higher than the sector average of 40.00. While high ROE can be a positive sign, it is important to consider the level of risk associated with the company's capital structure.
Analyzing the quarterly financial history reveals some volatility in Constellium's performance. While revenue has generally been increasing, net income and free cash flow have fluctuated significantly. The company reported a net income of $275.00 million for FY2025, but its free cash flow is not available. In previous years, the company's free cash flow has been highly variable, ranging from negative values in FY2023 and FY2021 to a substantial positive value in FY2022. This volatility raises concerns about the company's ability to consistently generate cash and fund its growth initiatives.
The company's current ratio of 1.29 indicates that it has sufficient liquid assets to cover its short-term liabilities. However, the company's high debt levels remain a concern. The company's total debt is not provided, but the high debt-to-equity ratio suggests that it is heavily leveraged. This could limit the company's financial flexibility and increase its vulnerability to economic downturns.
The significant capital expenditures in FY2023 and the large positive FCF in FY2022 followed by negative FCF in FY2021 and FY2023 suggest inconsistent capital allocation decisions. The company needs to demonstrate a more consistent approach to capital spending and cash flow management to instill confidence in investors.
In summary, Constellium's financial health is characterized by strong revenue growth, high leverage, and volatile free cash flow. While the company's high ROE may be attractive, it is important to consider the risks associated with its capital structure. The company needs to improve its profitability metrics and demonstrate a more consistent track record of cash flow generation to strengthen its financial position.
Valuation Assessment
Constellium's valuation appears attractive based on several key metrics. The company's P/E ratio of 11.5x is significantly lower than the sector average of 26.1x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the company's EV/EBITDA ratio of 1.9x is substantially lower than the sector average of 5.2x, further indicating that the stock may be undervalued based on its enterprise value and earnings before interest, taxes, depreciation, and amortization.
However, it is important to consider the company's growth prospects and risk profile when assessing its valuation. While Constellium has demonstrated strong revenue growth, its profitability metrics are lower than the sector averages, which could limit its ability to generate future earnings growth. Additionally, the company's high leverage and volatile free cash flow raise concerns about its financial stability and could warrant a lower valuation multiple.
The absence of free cash flow data makes a traditional discounted cash flow (DCF) analysis impossible. However, using the available data, we can compare Constellium's valuation multiples to those of its peers and to its own historical averages. Based on this comparison, the stock appears to be trading at a discount to its intrinsic value. However, this discount may be justified by the company's higher risk profile.
The company's momentum score of 72/100 suggests that the stock has been performing well in recent periods. This could be due to the company's strong revenue growth or to positive investor sentiment. However, it is important to remember that momentum can be fleeting, and past performance is not necessarily indicative of future results.
The company's investment score of 25/100 is relatively low, indicating that the company may not be allocating its capital efficiently or that its growth prospects are limited. This could be due to the company's high debt levels or to its inconsistent capital allocation decisions.
Overall, Constellium's valuation appears attractive based on its P/E and EV/EBITDA ratios. However, it is important to consider the company's growth prospects, risk profile, and capital allocation decisions when assessing its valuation. The Hold rating reflects the balance between the company's attractive valuation and its higher risk profile.
Risk & Uncertainty
Constellium faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is the cyclical nature of the aluminum industry. Demand for aluminum products is highly correlated with economic growth, and a slowdown in the global economy could lead to a decline in sales and profitability. The aerospace and automotive industries, which are key end-markets for Constellium, are particularly sensitive to economic fluctuations.
Another significant risk is the volatility of aluminum prices. Aluminum prices are influenced by a variety of factors, including supply and demand, global economic conditions, and geopolitical events. Fluctuations in aluminum prices can impact Constellium's profitability, as the company may not be able to fully pass on price increases to its customers. The company's ability to manage its raw material costs and hedge against price volatility is crucial for maintaining its margins.
Competition is also a major risk for Constellium. The aluminum industry is highly competitive, with a number of large and well-established players. Constellium faces competition from both domestic and international companies, including Alcoa, Rio Tinto, and Novelis. The company's ability to differentiate its products and services and maintain its competitive edge is essential for its long-term success.
Constellium's high leverage is another significant risk. The company's debt-to-equity ratio of 451.00 is significantly higher than the sector average, which increases its financial risk. High debt levels can limit the company's financial flexibility and make it more vulnerable to economic downturns. The company's ability to reduce its debt and improve its capital structure is crucial for mitigating this risk.
Finally, the company's reliance on a few key customers could pose a concentration risk. The loss of a major customer could have a significant impact on Constellium's sales and profitability. The company needs to diversify its customer base and strengthen its relationships with its existing customers to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWConstellium's strategic focus on high-value end-markets like aerospace and automotive positions it to benefit from long-term growth trends in these sectors, driving revenue and earnings expansion.
BULL VIEWThe company's attractive valuation, with a P/E ratio significantly below the sector average, provides a compelling entry point for investors seeking undervalued opportunities in the materials sector.
BULL VIEWConstellium's strong revenue growth demonstrates its ability to capture market share and capitalize on favorable industry dynamics, indicating a potential for continued outperformance.
The Bear Case
BEAR VIEWConstellium's high debt levels and volatile free cash flow raise concerns about its financial stability and ability to fund future growth initiatives, potentially limiting its long-term upside.
BEAR VIEWThe company's relatively low profitability metrics compared to its peers suggest that it may be facing challenges in controlling costs or that its product mix is less profitable, hindering margin expansion.
BEAR VIEWThe cyclical nature of the aluminum industry and the volatility of aluminum prices expose Constellium to significant risks that could negatively impact its sales and profitability, making it a less attractive investment.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CSTM and 4,400+ other equities.
CONSTELLIUM SE exhibits a 39% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
20.5%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
14.5%
Sector: 29.8%
Operating Margin
Core business profitability
4.8%
Sector: 6.0%
Net Margin
Bottom-line profitability
3.3%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
