Constellium’s (CSTM) Growth Story: There’s Still Time

A lot of the time, our tendency to focus on flashy and attention-grabbing names causes us to ignore other, more conventional (which is a nice way of saying boring) businesses.

Sure, these companies won’t be revolutionizing any industries any time soon — but, if you know what to look for, there are some real diamonds in the rough out there.

Today, we’ll be taking a look at Constellium (NYSE: CSTM), a rolled aluminium product manufacturer that’s been in business for 14 years. The company has a $2.32 billion market cap, and serves the aerospace, automotive, and packaging industries, with a star-studded list of clients including but not limited to Mercedes-Benz, Audi, BMW, Ford, Boeing, and Bombardier.

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For starters, our proprietary rating system places CSTM in the top 2% of the roughly 4,600 stocks that we keep track of. This gives it a Zen Rating of A — and stocks of this caliber have provided an average annual return of 32.52% since the early 2000s.

Each Zen Rating consists of 7 Component Grade ratings, which will clue us in on Constellium ‘s particular strength. For instance, the stock ranks in the top 12% when it comes to the Value rating, as it’s trading at a pretty attractive P/E ratio of just 19.46x and a PEG ratio of 0.75x.

That’s not the only thing it has going for it — in fact, this is a pretty rare case of a stock that ranks highly in terms of both Value and Growth. In terms of the latter, it’s in the 96th percentile — equivalent to or better than 96% of stocks, or, in other words, in the top 4%. CSTM’s earnings are forecast to grow at a rate of 28.85% per year, almost twice the industry average. In addition, revenue growth is also expected to outpace the industry average.

Last but not least, we have our Artificial Intelligence Component Grade rating, which uses a neural network trained on more than two decades of market data to pinpoint likely outperformers. In this category, CSTM ranks in the top 7%.

On top of that, Constellium stacks up favorably against rivals and peers — it is the 2nd highest-rated stock in the Aluminum industry, which has an Industry Rating of A.

Now that we’ve dealt with the metrics, it’s time to look at context. On September 29, Constellium released its Q3 2025 earnings report. EPS came in at $0.62, far ahead of consensus estimates, which were pegged at $0.37. Despite the outperformance, CSTM didn’t see prices go up — in fact, the stock is down 0.59% in the past 30 days.

There’s an odd mismatch at play — it seems as if investors are skeptical of CSTM on account of past volatility, despite favorable forecasts. The company is transitioning toward a higher-margin mix, with a 67% increase in revenue from the Aerospace & Transportation segment — in addition, it’s benefiting from stable aluminum prices.

We’ve got great growth prospects on our hands, and quite an appealing valuation. At present, it looks like CSTM is in the middle of an operational turnaround, but the market hasn’t quite caught on to it yet. 

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