CELANESE CORP (CE) Stock Fundamental Analysis
NYSE:CE - New York Stock Exchange, Inc. - US1508701034 - Common Stock - Currency: USD
Taking everything into account, CE scores 4 out of 10 in our fundamental rating. CE was compared to 85 industry peers in the Chemicals industry. While CE is still in line with the averages on profitability rating, there are concerns on its financial health. CE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CE was profitable.
In the past year CE had a positive cash flow from operations.
Of the past 5 years CE 4 years were profitable.
CE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CE has a Return On Assets of 4.21%. This is in the better half of the industry: CE outperforms 66.27% of its industry peers.
CE has a Return On Equity of 14.98%. This is in the better half of the industry: CE outperforms 79.52% of its industry peers.
With a Return On Invested Capital value of 3.96%, CE perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CE is below the industry average of 6.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 14.98% | ||
| ROIC | 3.96% |
ROA(3y)2.64%
ROA(5y)8.38%
ROE(3y)10.61%
ROE(5y)26.65%
ROIC(3y)4.44%
ROIC(5y)7.07%
1.3 Margins
CE has a Profit Margin of 10.40%. This is amongst the best in the industry. CE outperforms 86.75% of its industry peers.
CE's Operating Margin of 10.50% is in line compared to the rest of the industry. CE outperforms 55.42% of its industry peers.
In the last couple of years the Operating Margin of CE has declined.
CE has a Gross Margin (23.19%) which is comparable to the rest of the industry.
CE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 10.4% | ||
| GM | 23.19% |
OM growth 3Y-23.37%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.81%
GM growth 5Y-2.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CE is destroying value.
CE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CE has less shares outstanding
Compared to 1 year ago, CE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that CE is in the distress zone and has some risk of bankruptcy.
CE has a Altman-Z score of 1.51. This is in the lower half of the industry: CE underperforms 65.06% of its industry peers.
CE has a debt to FCF ratio of 15.32. This is a negative value and a sign of low solvency as CE would need 15.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.32, CE is in line with its industry, outperforming 48.19% of the companies in the same industry.
A Debt/Equity ratio of 1.59 is on the high side and indicates that CE has dependencies on debt financing.
CE has a Debt to Equity ratio of 1.59. This is amonst the worse of the industry: CE underperforms 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.51
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.37 indicates that CE should not have too much problems paying its short term obligations.
CE has a worse Current ratio (1.37) than 75.90% of its industry peers.
A Quick Ratio of 0.76 indicates that CE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, CE is doing worse than 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for CE have decreased by -6.39% in the last year.
The Earnings Per Share has been decreasing by -2.59% on average over the past years.
The Revenue has decreased by -6.03% in the past year.
CE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.30% yearly.
EPS 1Y (TTM)-6.39%
EPS 3Y-22.89%
EPS 5Y-2.59%
EPS Q2Q%-35.27%
Revenue 1Y (TTM)-6.03%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-7.75%
3.2 Future
Based on estimates for the next years, CE will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.85% on average per year.
CE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.89% yearly.
EPS Next Y2.92%
EPS Next 2Y12.44%
EPS Next 3Y16.73%
EPS Next 5Y12.85%
Revenue Next Year-0.19%
Revenue Next 2Y2.21%
Revenue Next 3Y3.59%
Revenue Next 5Y2.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.32, which indicates a rather cheap valuation of CE.
Based on the Price/Earnings ratio, CE is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
CE is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.14, which indicates a rather cheap valuation of CE.
Based on the Price/Forward Earnings ratio, CE is valued cheaper than 96.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 6.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CE is valued a bit cheaper than 66.27% of the companies in the same industry.
CE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CE is cheaper than 92.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.83 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CE's earnings are expected to grow with 16.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y12.44%
EPS Next 3Y16.73%
5. Dividend
5.1 Amount
CE has a yearly dividend return of 0.22%, which is pretty low.
In the last 3 months the price of CE has falen by -29.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.27, CE is paying slightly less dividend.
With a Dividend Yield of 0.22, CE pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of CE has a limited annual growth rate of 5.80%.
CE has been paying a dividend for at least 10 years, so it has a reliable track record.
CE has decreased its dividend recently.
Dividend Growth(5Y)5.8%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
28.17% of the earnings are spent on dividend by CE. This is a low number and sustainable payout ratio.
CE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.17%
EPS Next 2Y12.44%
EPS Next 3Y16.73%
52.76
+0.15 (+0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-0.96%
Ins Owners0.36%
Ins Owner Change-0.45%
Market Cap5.77B
Analysts54.29
Price Target92.57 (75.45%)
Short Float %5.66%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend2.81
Dividend Growth(5Y)5.8%
DP28.17%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.8%
Min EPS beat(2)-16.92%
Max EPS beat(2)-14.68%
EPS beat(4)1
Avg EPS beat(4)-7.94%
Min EPS beat(4)-16.92%
Max EPS beat(4)5.55%
EPS beat(8)3
Avg EPS beat(8)-5.15%
EPS beat(12)5
Avg EPS beat(12)-2.1%
EPS beat(16)8
Avg EPS beat(16)0.89%
Revenue beat(2)0
Avg Revenue beat(2)-5.62%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)-4.71%
Revenue beat(4)0
Avg Revenue beat(4)-5.06%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)-3.82%
Revenue beat(8)0
Avg Revenue beat(8)-5.08%
Revenue beat(12)2
Avg Revenue beat(12)-2.87%
Revenue beat(16)6
Avg Revenue beat(16)-0.6%
PT rev (1m)-7.86%
PT rev (3m)-38.16%
EPS NQ rev (1m)-4.24%
EPS NQ rev (3m)-16.71%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-3.31%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 6.14 | ||
| P/S | 0.55 | ||
| P/FCF | 6.83 | ||
| P/OCF | 4.43 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.14 |
EPS(TTM)8.35
EY15.83%
EPS(NY)8.59
Fwd EY16.29%
FCF(TTM)7.72
FCFY14.63%
OCF(TTM)11.91
OCFY22.58%
SpS95.86
BVpS66.54
TBVpS-32.76
PEG (NY)2.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 14.98% | ||
| ROCE | 5.06% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 8.44% | ||
| OM | 10.5% | ||
| PM (TTM) | 10.4% | ||
| GM | 23.19% | ||
| FCFM | 8.05% |
ROA(3y)2.64%
ROA(5y)8.38%
ROE(3y)10.61%
ROE(5y)26.65%
ROIC(3y)4.44%
ROIC(5y)7.07%
ROICexc(3y)4.75%
ROICexc(5y)7.69%
ROICexgc(3y)9.79%
ROICexgc(5y)12.1%
ROCE(3y)5.72%
ROCE(5y)9.13%
ROICexcg growth 3Y-24.92%
ROICexcg growth 5Y-6.59%
ROICexc growth 3Y-34.9%
ROICexc growth 5Y-15.39%
OM growth 3Y-23.37%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.81%
GM growth 5Y-2.01%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.32 | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 55.25% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.5% | ||
| Profit Quality | 77.43% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.51 |
F-Score6
WACC7.74%
ROIC/WACC0.51
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.39%
EPS 3Y-22.89%
EPS 5Y-2.59%
EPS Q2Q%-35.27%
EPS Next Y2.92%
EPS Next 2Y12.44%
EPS Next 3Y16.73%
EPS Next 5Y12.85%
Revenue 1Y (TTM)-6.03%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-7.75%
Revenue Next Year-0.19%
Revenue Next 2Y2.21%
Revenue Next 3Y3.59%
Revenue Next 5Y2.89%
EBIT growth 1Y10.33%
EBIT growth 3Y-18.48%
EBIT growth 5Y0.35%
EBIT Next Year54.81%
EBIT Next 3Y20.39%
EBIT Next 5Y16.2%
FCF growth 1Y-17.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.13%
OCF growth 3YN/A
OCF growth 5YN/A