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. CE may be in some trouble as it scores bad on both profitability and health. CE is cheap, but on the other hand it scores bad on growth.
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.
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 has a worse Return On Assets (-7.17%) than 72.94% of its industry peers.
CE has a worse Return On Equity (-32.09%) than 76.47% of its industry peers.
CE has a Return On Invested Capital of 3.81%. This is comparable to the rest of the industry: CE outperforms 43.53% of its industry peers.
CE had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 6.77%.
| 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 has a Operating Margin (9.92%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CE has declined.
CE's Gross Margin of 22.65% is in line compared to the rest of the industry. CE outperforms 42.35% of its industry peers.
CE's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for CE has been reduced compared to 5 years ago.
Compared to 1 year ago, CE has a worse debt to assets ratio.
2.2 Solvency
CE has an Altman-Z score of 1.55. This is a bad value and indicates that CE is not financially healthy and even has some risk of bankruptcy.
CE has a worse Altman-Z score (1.55) than 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's Debt to FCF ratio of 25.47 is in line compared to the rest of the industry. CE outperforms 44.71% of its industry peers.
A Debt/Equity ratio of 2.45 is on the high side and indicates that CE has dependencies on debt 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 | 1.55 |
ROIC/WACC0.5
WACC7.54%
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 48.24% of its industry peers.
CE has a Quick Ratio of 1.11. This is a normal value and indicates that CE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CE (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.92%.
CE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.59% yearly.
The Revenue has decreased by -5.98% 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)-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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.19% yearly.
CE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.05% yearly.
EPS Next Y-37.02%
EPS Next 2Y-8.31%
EPS Next 3Y1.86%
EPS Next 5Y7.19%
Revenue Next Year-4.38%
Revenue Next 2Y-0.55%
Revenue Next 3Y1.01%
Revenue Next 5Y1.05%
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 7.03, the valuation of CE can be described as very cheap.
92.94% of the companies in the same industry are more expensive than CE, based on the Price/Earnings ratio.
CE is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.85, the valuation of CE can be described as very cheap.
Based on the Price/Forward Earnings ratio, CE is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, CE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CE is valued a bit cheaper than the industry average as 61.18% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CE indicates a rather cheap valuation: CE is cheaper than 83.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.48 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.31%
EPS Next 3Y1.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, CE is not a good candidate for dividend investing.
CE's Dividend Yield is slightly below the industry average, which is at 3.75.
With a Dividend Yield of 0.23, CE pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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.
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.
The dividend of CE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-14%
EPS Next 2Y-8.31%
EPS Next 3Y1.86%
48.07
-0.48 (-0.99%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners108.54%
Inst Owner Change0.49%
Ins Owners0.27%
Ins Owner Change2.87%
Market Cap5.26B
Analysts71.54
Price Target65.16 (35.55%)
Short Float %5.88%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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)6.13%
PT rev (3m)5.76%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)0.96%
EPS NY rev (3m)-2.84%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 6.85 | ||
| P/S | 0.52 | ||
| P/FCF | 10.48 | ||
| P/OCF | 5.83 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)6.84
EY14.23%
EPS(NY)7.02
Fwd EY14.6%
FCF(TTM)4.59
FCFY9.54%
OCF(TTM)8.24
OCFY17.15%
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 | 1.55 |
F-Score4
WACC7.54%
ROIC/WACC0.5
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-37.02%
EPS Next 2Y-8.31%
EPS Next 3Y1.86%
EPS Next 5Y7.19%
Revenue 1Y (TTM)-5.98%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-8.5%
Revenue Next Year-4.38%
Revenue Next 2Y-0.55%
Revenue Next 3Y1.01%
Revenue Next 5Y1.05%
EBIT growth 1Y-14.63%
EBIT growth 3Y-18.82%
EBIT growth 5Y0.1%
EBIT Next Year26.72%
EBIT Next 3Y14.95%
EBIT Next 5Y11.2%
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%