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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CE was profitable.
CE had a positive operating cash flow in the past year.
Of the past 5 years CE 4 years were profitable.
CE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CE has a Return On Assets of -7.17%. This is in the lower half of the industry: CE underperforms 72.94% of its industry peers.
CE has a worse Return On Equity (-32.09%) than 77.65% of its industry peers.
CE has a Return On Invested Capital (3.81%) which is comparable to the rest of the industry.
CE had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 6.84%.
| 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.
The Gross Margin of CE (22.65%) 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CE is destroying value.
CE has more shares outstanding than it did 1 year ago.
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 1.58. This is a bad value and indicates that CE is not financially healthy and even has some risk of bankruptcy.
CE has a Altman-Z score of 1.58. 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.
The Debt to FCF ratio of CE (25.47) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.45 is on the high side and indicates that CE has dependencies on debt financing.
The Debt to Equity ratio of CE (2.45) is worse than 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 25.47 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.48
WACC7.92%
2.3 Liquidity
CE has a Current Ratio of 1.94. This is a normal value and indicates that CE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.94, CE is in line with its industry, outperforming 48.24% of the companies in the same industry.
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.
CE has a Quick ratio (1.11) which 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
The earnings per share for CE have decreased strongly by -23.92% 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.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.19% yearly.
The Revenue is expected to grow by 1.05% on average over the next years.
EPS Next Y-37.61%
EPS Next 2Y-8.91%
EPS Next 3Y1.63%
EPS Next 5Y7.19%
Revenue Next Year-4.19%
Revenue Next 2Y-0.49%
Revenue Next 3Y1.04%
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.
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
With a Price/Earnings ratio of 8.13, the valuation of CE can be described as very reasonable.
90.59% 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 26.69, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.03, the valuation of CE can be described as reasonable.
Based on the Price/Forward Earnings ratio, CE is valued cheaper than 88.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CE to the average of the S&P500 Index (21.29), we can say CE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
CE's Enterprise Value to EBITDA ratio is in line with the industry average.
85.88% 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 | 12.12 | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.91%
EPS Next 3Y1.63%
5. Dividend
5.1 Amount
CE has a yearly dividend return of 0.22%, which is pretty low.
CE's Dividend Yield is slightly below the industry average, which is at 3.75.
With a Dividend Yield of 0.22, CE pays less dividend than the S&P500 average, which is at 2.43.
| 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
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-8.91%
EPS Next 3Y1.63%
55.61
-0.41 (-0.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners108.54%
Inst Owner Change1.36%
Ins Owners0.27%
Ins Owner Change2.9%
Market Cap6.08B
Analysts69.29
Price Target61.4 (10.41%)
Short Float %6.7%
Short Ratio2.68
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)-1.24%
PT rev (3m)-12.48%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-6.37%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-39.39%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 8.03 | ||
| P/S | 0.6 | ||
| P/FCF | 12.12 | ||
| P/OCF | 6.75 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.86 |
EPS(TTM)6.84
EY12.3%
EPS(NY)6.93
Fwd EY12.46%
FCF(TTM)4.59
FCFY8.25%
OCF(TTM)8.24
OCFY14.83%
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 | 1.58 |
F-Score4
WACC7.92%
ROIC/WACC0.48
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-37.61%
EPS Next 2Y-8.91%
EPS Next 3Y1.63%
EPS Next 5Y7.19%
Revenue 1Y (TTM)-5.98%
Revenue growth 3Y6.39%
Revenue growth 5Y10.3%
Sales Q2Q%-8.5%
Revenue Next Year-4.19%
Revenue Next 2Y-0.49%
Revenue Next 3Y1.04%
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%