CELANESE CORP (CE) Stock Fundamental Analysis
NYSE:CE - New York Stock Exchange, Inc. - US1508701034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CE. CE was compared to 85 industry peers in the Chemicals industry. CE may be in some trouble as it scores bad on both profitability and health. CE may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years CE 4 years were profitable.
Each year in the past 5 years CE had a positive operating cash flow.
1.2 Ratios
CE has a Return On Assets of -7.17%. This is in the lower half of the industry: CE underperforms 74.12% of its industry peers.
CE has a Return On Equity of -32.09%. This is in the lower half of the industry: CE underperforms 78.82% of its industry peers.
The Return On Invested Capital of CE (3.81%) 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 6.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.17% | ||
| ROE | -32.09% | ||
| ROIC | 3.81% |
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 9.92% 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.
CE has a Gross Margin (22.65%) which 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 | 9.92% | ||
| PM (TTM) | N/A | ||
| GM | 22.65% |
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
CE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CE has been increased compared to 1 year ago.
Compared to 5 years ago, CE has less shares outstanding
CE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that CE is in the distress zone and has some risk of bankruptcy.
CE has a Altman-Z score of 1.57. This is in the lower half of the industry: CE underperforms 63.53% of its industry peers.
The Debt to FCF ratio of CE is 25.47, which is on the high side as it means it would take CE, 25.47 years of fcf income to pay off all of its debts.
CE has a Debt to FCF ratio of 25.47. This is comparable to the rest of the industry: CE outperforms 47.06% of its industry peers.
CE has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.45, CE is doing worse than 85.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 25.47 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.49
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.94 indicates that CE should not have too much problems paying its short term obligations.
CE has a Current ratio of 1.94. This is comparable to the rest of the industry: CE outperforms 49.41% of its industry peers.
A Quick Ratio of 1.11 indicates that CE should not have too much problems paying its short term obligations.
CE's Quick ratio of 1.11 is in line compared to the rest of the industry. CE outperforms 45.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for CE have decreased strongly by -23.92% in the last year.
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.
CE shows a decrease in Revenue. In the last year, the revenue decreased by -5.98%.
Measured over the past years, CE shows a quite strong growth in Revenue. The Revenue has been growing by 10.30% on average per year.
EPS 1Y (TTM)-23.92%
EPS 3Y-22.89%
EPS 5Y-2.59%
EPS Q2Q%-72.6%
Revenue 1Y (TTM)-5.98%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-8.5%
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.
CE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.86% yearly.
EPS Next Y-37.51%
EPS Next 2Y-8.38%
EPS Next 3Y2.41%
EPS Next 5Y10.28%
Revenue Next Year-4.3%
Revenue Next 2Y-0.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.67, which indicates a rather cheap valuation of CE.
Based on the Price/Earnings ratio, CE is valued cheaper than 89.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of CE to the average of the S&P500 Index (26.29), we can say CE is valued rather cheaply.
A Price/Forward Earnings ratio of 7.49 indicates a rather cheap valuation of CE.
CE's Price/Forward Earnings ratio is rather cheap when compared to the industry. CE is cheaper than 87.06% of the companies in the same industry.
CE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
CE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CE is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.38%
EPS Next 3Y2.41%
5. Dividend
5.1 Amount
CE has a yearly dividend return of 0.22%, which is pretty low.
Compared to an average industry Dividend Yield of 3.75, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
The dividend of CE has a limited annual growth rate of 3.06%.
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)3.06%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
CE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
CE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-14%
EPS Next 2Y-8.38%
EPS Next 3Y2.41%
52.48
-0.35 (-0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.4%
Inst Owner Change1.36%
Ins Owners0.22%
Ins Owner Change2.9%
Market Cap5.74B
Analysts68.28
Price Target62.17 (18.46%)
Short Float %6.75%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend2.81
Dividend Growth(5Y)3.06%
DP-14%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.81%
Min EPS beat(2)17.22%
Max EPS beat(2)44.41%
EPS beat(4)2
Avg EPS beat(4)7.51%
Min EPS beat(4)-16.92%
Max EPS beat(4)44.41%
EPS beat(8)4
Avg EPS beat(8)2.1%
EPS beat(12)6
Avg EPS beat(12)1.91%
EPS beat(16)8
Avg EPS beat(16)2.76%
Revenue beat(2)1
Avg Revenue beat(2)0.01%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)2.89%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)2.89%
Revenue beat(8)1
Avg Revenue beat(8)-4.06%
Revenue beat(12)2
Avg Revenue beat(12)-3.36%
Revenue beat(16)5
Avg Revenue beat(16)-1.37%
PT rev (1m)0.91%
PT rev (3m)-32.83%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)-36.01%
EPS NY rev (1m)-3.6%
EPS NY rev (3m)-39.28%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)-4.06%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 7.49 | ||
| P/S | 0.57 | ||
| P/FCF | 11.44 | ||
| P/OCF | 6.37 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.69 |
EPS(TTM)6.84
EY13.03%
EPS(NY)7.01
Fwd EY13.36%
FCF(TTM)4.59
FCFY8.74%
OCF(TTM)8.24
OCFY15.71%
SpS91.93
BVpS47.4
TBVpS-35.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.17% | ||
| ROE | -32.09% | ||
| ROCE | 4.89% | ||
| ROIC | 3.81% | ||
| ROICexc | 3.99% | ||
| ROICexgc | 7.38% | ||
| OM | 9.92% | ||
| PM (TTM) | N/A | ||
| GM | 22.65% | ||
| FCFM | 4.99% |
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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 25.47 | ||
| Debt/EBITDA | 7.11 | ||
| Cap/Depr | 50.83% | ||
| Cap/Sales | 3.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.57 |
F-Score4
WACC7.81%
ROIC/WACC0.49
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)-23.92%
EPS 3Y-22.89%
EPS 5Y-2.59%
EPS Q2Q%-72.6%
EPS Next Y-37.51%
EPS Next 2Y-8.38%
EPS Next 3Y2.41%
EPS Next 5Y10.28%
Revenue 1Y (TTM)-5.98%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-8.5%
Revenue Next Year-4.3%
Revenue Next 2Y-0.6%
Revenue Next 3Y1.03%
Revenue Next 5Y1.86%
EBIT growth 1Y-14.63%
EBIT growth 3Y-18.82%
EBIT growth 5Y0.1%
EBIT Next Year26.72%
EBIT Next 3Y14.95%
EBIT Next 5Y14.95%
FCF growth 1Y-40.02%
FCF growth 3Y-25.61%
FCF growth 5Y-13.3%
OCF growth 1Y-35.89%
OCF growth 3Y-18.08%
OCF growth 5Y-7.85%