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 84 industry peers in the Chemicals industry. CE has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on CE.
1. Profitability
1.1 Basic Checks
CE had positive earnings in the past year.
CE had a positive operating cash flow in the past year.
CE had positive earnings in 4 of the past 5 years.
CE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CE has a worse Return On Assets (-6.66%) than 75.00% of its industry peers.
CE has a worse Return On Equity (-29.41%) than 79.76% of its industry peers.
The Return On Invested Capital of CE (4.29%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CE is below the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.66% | ||
| ROE | -29.41% | ||
| ROIC | 4.29% |
ROA(3y)2.64%
ROA(5y)8.38%
ROE(3y)10.61%
ROE(5y)26.65%
ROIC(3y)4.41%
ROIC(5y)7.05%
1.3 Margins
CE has a Operating Margin of 10.09%. This is comparable to the rest of the industry: CE outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of CE has declined.
CE has a Gross Margin (22.92%) 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 | 10.09% | ||
| PM (TTM) | N/A | ||
| GM | 22.92% |
OM growth 3Y-23.69%
OM growth 5Y-9.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.98%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CE is destroying value.
Compared to 1 year ago, CE has more shares outstanding
Compared to 5 years ago, CE has less shares outstanding
The debt/assets ratio for CE is higher compared to a year ago.
2.2 Solvency
CE has an Altman-Z score of 1.50. This is a bad value and indicates that CE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.50, CE perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
The Debt to FCF ratio of CE is 23.69, which is on the high side as it means it would take CE, 23.69 years of fcf income to pay off all of its debts.
CE has a Debt to FCF ratio (23.69) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.16 is on the high side and indicates that CE has dependencies on debt financing.
With a Debt to Equity ratio value of 2.16, CE is not doing good in the industry: 84.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 23.69 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.6
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CE should not have too much problems paying its short term obligations.
CE's Current ratio of 1.34 is on the low side compared to the rest of the industry. CE is outperformed by 70.24% of its industry peers.
CE has a Quick Ratio of 1.34. This is a bad value and indicates that CE is not financially healthy enough and could expect problems in meeting its short term obligations.
CE's Quick ratio of 0.74 is on the low side compared to the rest of the industry. CE is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for CE have decreased by -6.39% in the last year.
CE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.59% yearly.
Looking at the last year, CE shows a decrease in Revenue. The Revenue has decreased by -6.03% in the last 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
CE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.28% yearly.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-31.91%
EPS Next 2Y-2.43%
EPS Next 3Y6.96%
EPS Next 5Y10.28%
Revenue Next Year-4.96%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.98%
Revenue Next 5Y1.86%
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
Based on the Price/Earnings ratio of 4.80, the valuation of CE can be described as very cheap.
Based on the Price/Earnings ratio, CE is valued cheaper than 97.62% of the companies in the same industry.
CE is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.05 indicates a rather cheap valuation of CE.
Based on the Price/Forward Earnings ratio, CE is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
CE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
CE's Enterprise Value to EBITDA is on the same level as the industry average.
84.52% 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 | 8.44 | ||
| EV/EBITDA | 8.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.43%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
CE has a yearly dividend return of 0.32%, which is pretty low.
The stock price of CE dropped by -44.79% 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.
Compared to an average industry Dividend Yield of 4.09, CE is paying slightly less dividend.
With a Dividend Yield of 0.32, CE pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
The dividend of CE has a limited annual growth rate of 3.06%.
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)3.06%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of CE are negative and hence is the payout ratio. CE will probably not be able to sustain this dividend level.
CE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-20.17%
EPS Next 2Y-2.43%
EPS Next 3Y6.96%
40.09
+2.56 (+6.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.4%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change0.81%
Market Cap4.48B
Analysts68.57
Price Target68.34 (70.47%)
Short Float %8%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend2.81
Dividend Growth(5Y)3.06%
DP-20.17%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.15%
Min EPS beat(2)-16.92%
Max EPS beat(2)17.22%
EPS beat(4)2
Avg EPS beat(4)-2.21%
Min EPS beat(4)-16.92%
Max EPS beat(4)17.22%
EPS beat(8)4
Avg EPS beat(8)-1.05%
EPS beat(12)6
Avg EPS beat(12)-0.2%
EPS beat(16)8
Avg EPS beat(16)0.82%
Revenue beat(2)0
Avg Revenue beat(2)-3.79%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-4.82%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)-2.87%
Revenue beat(8)0
Avg Revenue beat(8)-4.81%
Revenue beat(12)2
Avg Revenue beat(12)-2.83%
Revenue beat(16)5
Avg Revenue beat(16)-1.45%
PT rev (1m)-2.58%
PT rev (3m)-32.46%
EPS NQ rev (1m)-13.76%
EPS NQ rev (3m)-78.49%
EPS NY rev (1m)-33.85%
EPS NY rev (3m)-41.27%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-12.77%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-6.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 7.05 | ||
| P/S | 0.44 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.64 | ||
| P/B | 0.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.6 |
EPS(TTM)8.35
EY20.83%
EPS(NY)5.69
Fwd EY14.18%
FCF(TTM)4.75
FCFY11.85%
OCF(TTM)8.64
OCFY21.56%
SpS91.99
BVpS46.31
TBVpS-34.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.66% | ||
| ROE | -29.41% | ||
| ROCE | 5.46% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 8.98% | ||
| OM | 10.09% | ||
| PM (TTM) | N/A | ||
| GM | 22.92% | ||
| FCFM | 5.17% |
ROA(3y)2.64%
ROA(5y)8.38%
ROE(3y)10.61%
ROE(5y)26.65%
ROIC(3y)4.41%
ROIC(5y)7.05%
ROICexc(3y)4.72%
ROICexc(5y)7.67%
ROICexgc(3y)9.71%
ROICexgc(5y)12.05%
ROCE(3y)5.7%
ROCE(5y)9.11%
ROICexcg growth 3Y-25.53%
ROICexcg growth 5Y-7.04%
ROICexc growth 3Y-35.3%
ROICexc growth 5Y-15.71%
OM growth 3Y-23.69%
OM growth 5Y-9.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.98%
GM growth 5Y-2.12%
F-Score3
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 23.69 | ||
| Debt/EBITDA | 6.01 | ||
| Cap/Depr | 52.86% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 1.48 | ||
| Cash Conversion | 51.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.5 |
F-Score3
WACC7.2%
ROIC/WACC0.6
Cap/Depr(3y)81.1%
Cap/Depr(5y)93.82%
Cap/Sales(3y)5.01%
Cap/Sales(5y)5.39%
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 Y-31.91%
EPS Next 2Y-2.43%
EPS Next 3Y6.96%
EPS Next 5Y10.28%
Revenue 1Y (TTM)-6.03%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-7.75%
Revenue Next Year-4.96%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.98%
Revenue Next 5Y1.86%
EBIT growth 1Y-14.86%
EBIT growth 3Y-18.82%
EBIT growth 5Y0.1%
EBIT Next Year29.78%
EBIT Next 3Y16.93%
EBIT Next 5Y14.95%
FCF growth 1Y-60.11%
FCF growth 3Y-25.61%
FCF growth 5Y-13.3%
OCF growth 1Y-49.13%
OCF growth 3Y-18.08%
OCF growth 5Y-7.85%