CELANESE CORP (CE) Stock Fundamental Analysis
NYSE:CE - New York Stock Exchange, Inc. - US1508701034 - Common Stock - Currency: USD
CE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and financial health of CE have multiple concerns. CE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CE had positive earnings in the past year.
In the past year CE had a positive cash flow from operations.
CE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CE had a positive operating cash flow.
1.2 Ratios
CE's Return On Assets of -6.66% is on the low side compared to the rest of the industry. CE is outperformed by 75.29% of its industry peers.
CE has a Return On Equity of -29.41%. This is amonst the worse of the industry: CE underperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.29%, CE is in line with its industry, outperforming 48.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CE is below the industry average of 7.09%.
| 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's Operating Margin of 10.09% is in line compared to the rest of the industry. CE outperforms 57.65% of its industry peers.
CE's Operating Margin has declined in the last couple of years.
The Gross Margin of CE (22.92%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CE has declined.
| 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 1.52. 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 1.52, CE perfoms like the industry average, outperforming 41.18% 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.
Looking at the Debt to FCF ratio, with a value of 23.69, CE is in line with its industry, outperforming 45.88% of the companies in the same industry.
A Debt/Equity ratio of 2.16 is on the high side and indicates that CE has dependencies on debt financing.
CE's Debt to Equity ratio of 2.16 is on the low side compared to the rest of the industry. CE is outperformed by 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 23.69 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.57
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, CE is doing worse than 69.41% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that CE may have some problems paying 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 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
CE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.39%.
Measured over the past years, CE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.59% on average per year.
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
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-35.18%
EPS Next 2Y-5.61%
EPS Next 3Y4.7%
EPS Next 5Y10.28%
Revenue Next Year-5.21%
Revenue Next 2Y-0.8%
Revenue Next 3Y1.03%
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
With a Price/Earnings ratio of 5.50, the valuation of CE can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CE indicates a rather cheap valuation: CE is cheaper than 95.29% of the companies listed in the same industry.
CE is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.49 indicates a reasonable valuation of CE.
CE's Price/Forward Earnings ratio is rather cheap when compared to the industry. CE is cheaper than 83.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, CE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.5 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CE.
Based on the Price/Free Cash Flow ratio, CE is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.61%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
CE has a yearly dividend return of 0.26%, which is pretty low.
The stock price of CE dropped by -35.32% 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 slightly below the industry average, which is at 3.81.
With a Dividend Yield of 0.26, CE pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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-5.61%
EPS Next 3Y4.7%
45.95
+0.55 (+1.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.4%
Inst Owner Change4.59%
Ins Owners0.22%
Ins Owner Change0.81%
Market Cap5.13B
Analysts68.28
Price Target61.61 (34.08%)
Short Float %5.57%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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)-11.6%
PT rev (3m)-33.91%
EPS NQ rev (1m)-3.18%
EPS NQ rev (3m)-76.87%
EPS NY rev (1m)-4.79%
EPS NY rev (3m)-38.92%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-9.51%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.5 | ||
| Fwd PE | 8.49 | ||
| P/S | 0.5 | ||
| P/FCF | 9.67 | ||
| P/OCF | 5.32 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.95 |
EPS(TTM)8.35
EY18.17%
EPS(NY)5.41
Fwd EY11.78%
FCF(TTM)4.75
FCFY10.34%
OCF(TTM)8.64
OCFY18.81%
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 | 1.52 |
F-Score3
WACC7.51%
ROIC/WACC0.57
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-35.18%
EPS Next 2Y-5.61%
EPS Next 3Y4.7%
EPS Next 5Y10.28%
Revenue 1Y (TTM)-6.03%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-7.75%
Revenue Next Year-5.21%
Revenue Next 2Y-0.8%
Revenue Next 3Y1.03%
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%