📊 CENX Key Takeaways
Is Century Aluminum Co (CENX) a Good Investment?
Century Aluminum demonstrates strong cyclical profitability with exceptional margins (52% net, 57.6% operating) and conservative leverage, reflecting favorable commodity pricing. However, negative free cash flow (-$6.4M) despite $337.5M net income, combined with severe EPS decline (-87.2%) despite net income surge (+153.2%), raises critical concerns about earnings quality and sustainability.
Century Aluminum shows improving scale with 13.9% revenue growth, positive free cash flow, and solid operating cash generation, while liquidity and leverage remain manageable. However, the business still operates with thin net margins, modest returns on capital, and a sharp decline in diluted EPS, which points to uneven earnings quality despite higher net income. Fundamentally, the company looks financially stable but not yet strong enough to justify a more aggressive rating.
Century Aluminum Co Key Strengths (CENX)
- Exceptional profitability margins (52% net margin) indicating strong pricing power in current commodity cycle
- Conservative balance sheet leverage (0.37x D/E) with strong debt service capacity (19.2x interest coverage)
- Solid liquidity position ($244.1M cash, 2.30x current ratio) to weather commodity downturns
- Double-digit revenue growth (13.9% YoY) demonstrating demand strength in aluminum markets
- Revenue growth is solid and supported by positive operating income and cash flow generation
- Balance sheet risk appears manageable with a 1.97x current ratio, 0.53x debt-to-equity, and 8.1x interest coverage
- Free cash flow is positive, indicating the business can fund capital needs without obvious near-term stress
CENX Stock Risks: Century Aluminum Co Investment Risks
- Negative free cash flow despite high net income suggests potential one-time gains or accounting adjustments, raising earnings quality concerns
- Severe EPS collapse (-87.2% YoY) versus net income surge (+153.2%) indicates significant share dilution or non-recurring income items
- Cyclical commodity exposure with low gross margins (18.3%) vulnerable to price volatility and economic downturn
- Capital-intensive operations ($74.8M CapEx) with CapEx exceeding operating cash flow, limiting financial flexibility
- Net margin of 1.7% leaves limited cushion against aluminum price swings, energy costs, or operating disruptions
- Diluted EPS fell 87.2% year over year despite net income growth, suggesting weaker per-share earnings quality
- Returns remain modest with 5.2% ROE and 1.8% ROA, indicating limited efficiency in converting assets and equity into profit
Key Metrics to Watch
- Free cash flow sustainability and CapEx requirements relative to operating cash generation
- Reconciliation of net income growth versus EPS decline to assess quality of earnings
- Aluminum commodity pricing trends and margin trajectory as potential cycle indicators
- Share count and dilution metrics to explain EPS deterioration
- Operating and net margin progression
- Free cash flow after capital expenditures
Century Aluminum Co (CENX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.30x current ratio provides a solid financial cushion.
CENX Profit Margin, ROE & Profitability Analysis
CENX vs Market Sector: How Century Aluminum Co Compares
How Century Aluminum Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Century Aluminum Co Stock Overvalued? CENX Valuation Analysis 2026
Based on fundamental analysis, Century Aluminum Co appears fundamentally strong relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Century Aluminum Co Balance Sheet: CENX Debt, Cash & Liquidity
CENX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Century Aluminum Co's revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.47 indicates the company is currently unprofitable.
CENX Revenue Growth, EPS Growth & YoY Performance
CENX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $633.9M | $29.7M | $0.29 |
| Q3 2025 | $539.1M | $14.9M | $0.15 |
| Q2 2025 | $560.8M | -$2.5M | $-0.03 |
| Q1 2025 | $489.5M | $29.7M | $0.29 |
| Q2 2024 | $560.8M | -$2.5M | $-0.03 |
| Q1 2024 | $489.5M | -$38.6M | $-0.42 |
| Q3 2023 | $545.2M | -$42.0M | $0.43 |
| Q2 2023 | $575.5M | $7.5M | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Century Aluminum Co Dividends, Buybacks & Capital Allocation
CENX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Century Aluminum Co (CIK: 0000949157)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CENX
What is the AI rating for CENX?
Century Aluminum Co (CENX) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CENX's key strengths?
Claude: Exceptional profitability margins (52% net margin) indicating strong pricing power in current commodity cycle. Conservative balance sheet leverage (0.37x D/E) with strong debt service capacity (19.2x interest coverage). ChatGPT: Revenue growth is solid and supported by positive operating income and cash flow generation. Balance sheet risk appears manageable with a 1.97x current ratio, 0.53x debt-to-equity, and 8.1x interest coverage.
What are the risks of investing in CENX?
Claude: Negative free cash flow despite high net income suggests potential one-time gains or accounting adjustments, raising earnings quality concerns. Severe EPS collapse (-87.2% YoY) versus net income surge (+153.2%) indicates significant share dilution or non-recurring income items. ChatGPT: Net margin of 1.7% leaves limited cushion against aluminum price swings, energy costs, or operating disruptions. Diluted EPS fell 87.2% year over year despite net income growth, suggesting weaker per-share earnings quality.
What is CENX's revenue and growth?
Century Aluminum Co reported revenue of $649.2M.
Does CENX pay dividends?
Century Aluminum Co does not currently pay dividends.
Where can I find CENX SEC filings?
Official SEC filings for Century Aluminum Co (CIK: 0000949157) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CENX's EPS?
Century Aluminum Co has a diluted EPS of $3.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CENX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Century Aluminum Co has a B grade with 69% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CENX stock overvalued or undervalued?
Valuation metrics for CENX: ROE of 29.3% (sector avg: 15%), net margin of 52.0% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is CENX's AI grade for 2026?
Our dual AI analysis gives Century Aluminum Co a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CENX's free cash flow?
Century Aluminum Co's operating cash flow is $68.4M, with capital expenditures of $74.8M. FCF margin is -1.0%.
How does CENX compare to other Market stocks?
Vs Default sector averages: Net margin 52.0% (avg: 12%), ROE 29.3% (avg: 15%), current ratio 2.30 (avg: 1.8).
Why is CENX's return on equity (ROE) so high?
Century Aluminum Co has a return on equity of 29.3%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 52.0% net margin.