CELANESE CORP (CE) Stock Fundamental Analysis
NYSE:CE - New York Stock Exchange, Inc. - US1508701034 - Common Stock
CE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. Finally CE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CE was profitable.
CE had a positive operating cash flow in the past year.
Each year in the past 5 years CE has been profitable.
In the past 5 years CE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.21%, CE is doing good in the industry, outperforming 66.27% of the companies in the same industry.
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.
CE's Return On Invested Capital of 3.96% is in line compared to the rest of the industry. CE outperforms 46.99% of its industry peers.
CE had an Average Return On Invested Capital over the past 3 years of 8.23%. This is in line with the industry average of 6.57%.
The last Return On Invested Capital (3.96%) for CE is well below the 3 year average (8.23%), which needs to be investigated, but indicates that CE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 14.98% | ||
| ROIC | 3.96% |
ROA(3y)10.12%
ROA(5y)11.51%
ROE(3y)35.45%
ROE(5y)39.33%
ROIC(3y)8.23%
ROIC(5y)8.18%
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.
In the last couple of years the Profit Margin of CE has remained more or less at the same level.
CE has a Operating Margin (10.50%) which is comparable to the rest of the industry.
CE's Operating Margin has declined in the last couple of years.
The Gross Margin of CE (23.19%) 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-4.2%
OM growth 5Y-9.74%
PM growth 3Y-20.08%
PM growth 5Y1.21%
GM growth 3Y1.34%
GM growth 5Y-2.9%
2. Health
2.1 Basic Checks
CE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CE has more shares outstanding
The number of shares outstanding for CE has been reduced compared to 5 years ago.
The debt/assets ratio for CE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that CE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, CE is doing worse than 65.06% of the companies in the same industry.
The Debt to FCF ratio of CE is 15.32, which is on the high side as it means it would take CE, 15.32 years of fcf income to pay off 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 44.58% 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.
The Debt to Equity ratio of CE (1.59) is worse than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 15.32 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.49
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.37 indicates that CE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.37, CE is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
CE has a Quick Ratio of 1.37. This is a bad value and indicates that CE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.76, CE is doing worse than 86.75% 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 has grown by an nice 12.56% over the past year.
The Earnings Per Share has been decreasing by -4.16% on average over the past years.
CE shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
CE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.
EPS 1Y (TTM)12.56%
EPS 3Y5.34%
EPS 5Y-4.16%
EPS Q2Q%-2.4%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y24.6%
Revenue growth 5Y8.86%
Sales Q2Q%-2.75%
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 8.71% on average per year.
CE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.99% yearly.
EPS Next Y-5.81%
EPS Next 2Y4.17%
EPS Next 3Y9.57%
EPS Next 5Y8.71%
Revenue Next Year-6.1%
Revenue Next 2Y-2.58%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.99%
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 8.10, which indicates a very decent valuation of CE.
95.18% of the companies in the same industry are more expensive than CE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CE is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.65, the valuation of CE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CE indicates a rather cheap valuation: CE is cheaper than 95.18% of the companies listed in the same industry.
CE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
CE's Enterprise Value to EBITDA ratio is in line with the industry average.
86.75% of the companies in the same industry are more expensive than CE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
CE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.17%
EPS Next 3Y9.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.89%, CE has a reasonable but not impressive dividend return.
The stock price of CE dropped by -42.56% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CE's Dividend Yield is rather good when compared to the industry average which is at 3.26. CE pays more dividend than 84.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, CE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
The dividend of CE has a limited annual growth rate of 5.80%.
CE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CE decreased 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.
The dividend of CE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.17%
EPS Next 2Y4.17%
EPS Next 3Y9.57%
CELANESE CORP
NYSE:CE (1/21/2025, 8:04:00 PM)
After market: 74.3 +0.28 (+0.38%)74.02
+1.41 (+1.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change0.11%
Ins Owners0.36%
Ins Owner Change-0.45%
Market Cap8.09B
Analysts52.41
Price Target101.18 (36.69%)
Short Float %5.8%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend2.81
Dividend Growth(5Y)5.8%
DP28.17%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)-8.53%
PT rev (3m)-33.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.79%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.65 | ||
| P/S | 0.77 | ||
| P/FCF | 9.59 | ||
| P/OCF | 6.21 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.28 |
EPS(TTM)9.14
EY12.35%
EPS(NY)9.68
Fwd EY13.08%
FCF(TTM)7.72
FCFY10.43%
OCF(TTM)11.91
OCFY16.09%
SpS95.86
BVpS66.54
TBVpS-32.76
PEG (NY)N/A
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)10.12%
ROA(5y)11.51%
ROE(3y)35.45%
ROE(5y)39.33%
ROIC(3y)8.23%
ROIC(5y)8.18%
ROICexc(3y)8.77%
ROICexc(5y)8.89%
ROICexgc(3y)13.97%
ROICexgc(5y)12.84%
ROCE(3y)10.7%
ROCE(5y)10.69%
ROICexcg growth 3Y0.42%
ROICexcg growth 5Y-11.83%
ROICexc growth 3Y-15.36%
ROICexc growth 5Y-20.61%
OM growth 3Y-4.2%
OM growth 5Y-9.74%
PM growth 3Y-20.08%
PM growth 5Y1.21%
GM growth 3Y1.34%
GM growth 5Y-2.9%
F-Score5
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 | 1.58 |
F-Score5
WACC8.02%
ROIC/WACC0.49
Cap/Depr(3y)104.67%
Cap/Depr(5y)104.04%
Cap/Sales(3y)5.43%
Cap/Sales(5y)5.72%
Profit Quality(3y)67.84%
Profit Quality(5y)76.02%
High Growth Momentum
Growth
EPS 1Y (TTM)12.56%
EPS 3Y5.34%
EPS 5Y-4.16%
EPS Q2Q%-2.4%
EPS Next Y-5.81%
EPS Next 2Y4.17%
EPS Next 3Y9.57%
EPS Next 5Y8.71%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y24.6%
Revenue growth 5Y8.86%
Sales Q2Q%-2.75%
Revenue Next Year-6.1%
Revenue Next 2Y-2.58%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.99%
EBIT growth 1Y10.33%
EBIT growth 3Y19.37%
EBIT growth 5Y-1.74%
EBIT Next Year37.76%
EBIT Next 3Y15.66%
EBIT Next 5Y10.55%
FCF growth 1Y-35.03%
FCF growth 3Y10.78%
FCF growth 5Y1.74%
OCF growth 1Y-30.08%
OCF growth 3Y12.24%
OCF growth 5Y4.04%