CELANESE CORP (CE)

US1508701034 - Common Stock

170.25  +0.61 (+0.36%)

Fundamental Rating

5

Taking everything into account, CE scores 5 out of 10 in our fundamental rating. CE was compared to 85 industry peers in the Chemicals industry. While CE belongs to the best of the industry regarding profitability, there are concerns on its financial health. CE has a correct valuation and a medium growth rate.



7

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 each of the past 5 years.
CE had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 7.37%, CE belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
The Return On Equity of CE (27.64%) is better than 94.12% of its industry peers.
CE has a Return On Invested Capital of 4.20%. This is comparable to the rest of the industry: CE outperforms 47.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CE is in line with the industry average of 7.53%.
The 3 year average ROIC (8.23%) for CE is well above the current ROIC(4.20%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 7.37%
ROE 27.64%
ROIC 4.2%
ROA(3y)10.12%
ROA(5y)11.51%
ROE(3y)35.45%
ROE(5y)39.33%
ROIC(3y)8.23%
ROIC(5y)8.18%

1.3 Margins

CE has a better Profit Margin (17.92%) than 90.59% of its industry peers.
In the last couple of years the Profit Margin of CE has remained more or less at the same level.
With a decent Operating Margin value of 11.13%, CE is doing good in the industry, outperforming 62.35% of the companies in the same industry.
CE's Operating Margin has declined in the last couple of years.
CE has a Gross Margin of 23.79%. This is comparable to the rest of the industry: CE outperforms 48.24% of its industry peers.
CE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.13%
PM (TTM) 17.92%
GM 23.79%
OM growth 3Y-4.2%
OM growth 5Y-9.74%
PM growth 3Y-20.08%
PM growth 5Y1.21%
GM growth 3Y1.34%
GM growth 5Y-2.9%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CE is still creating some value.
The number of shares outstanding for CE has been increased compared to 1 year ago.
CE has less shares outstanding than it did 5 years ago.
CE has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.91 indicates that CE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.91, CE perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
The Debt to FCF ratio of CE is 10.28, which is on the high side as it means it would take CE, 10.28 years of fcf income to pay off all of its debts.
CE has a Debt to FCF ratio (10.28) which is in line with its industry peers.
A Debt/Equity ratio of 1.79 is on the high side and indicates that CE has dependencies on debt financing.
The Debt to Equity ratio of CE (1.79) is worse than 85.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.79
Debt/FCF 10.28
Altman-Z 1.91
ROIC/WACC0.53
WACC7.88%

2.3 Liquidity

CE has a Current Ratio of 1.53. This is a normal value and indicates that CE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.53, CE is not doing good in the industry: 74.12% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that CE may have some problems paying its short term obligations.
The Quick ratio of CE (0.95) is worse than 76.47% of its industry peers.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 0.95

4

3. Growth

3.1 Past

CE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.93%.
Measured over the past years, CE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.16% on average per year.
Looking at the last year, CE shows a quite strong growth in Revenue. The Revenue has grown by 13.10% in the last year.
CE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.
EPS 1Y (TTM)-43.93%
EPS 3Y5.34%
EPS 5Y-4.16%
EPS growth Q2Q55.56%
Revenue 1Y (TTM)13.1%
Revenue growth 3Y24.6%
Revenue growth 5Y8.86%
Revenue growth Q2Q9.41%

3.2 Future

Based on estimates for the next years, CE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.47% on average per year.
CE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y31.45%
EPS Next 2Y27.1%
EPS Next 3Y22.02%
EPS Next 5Y17.47%
Revenue Next Year2.03%
Revenue Next 2Y3.92%
Revenue Next 3Y4.16%
Revenue Next 5Y6.09%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.09 indicates a rather expensive valuation of CE.
Compared to the rest of the industry, the Price/Earnings ratio of CE indicates a somewhat cheap valuation: CE is cheaper than 62.35% of the companies listed in the same industry.
CE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
CE is valuated correctly with a Price/Forward Earnings ratio of 14.52.
Based on the Price/Forward Earnings ratio, CE is valued a bit cheaper than 71.76% of the companies in the same industry.
CE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.09
Fwd PE 14.52

4.2 Price Multiples

CE's Enterprise Value to EBITDA is on the same level as the industry average.
78.82% of the companies in the same industry are more expensive than CE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.93
EV/EBITDA 15.33

4.3 Compensation for Growth

CE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CE's earnings are expected to grow with 22.02% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y27.1%
EPS Next 3Y22.02%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.66%, CE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, CE pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, CE is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.66%

5.2 History

The dividend of CE has a limited annual growth rate of 5.80%.
CE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.8%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

15.56% of the earnings are spent on dividend by CE. This is a low number and sustainable payout ratio.
CE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.56%
EPS Next 2Y27.1%
EPS Next 3Y22.02%

CELANESE CORP

NYSE:CE (3/28/2024, 9:43:41 AM)

170.25

+0.61 (+0.36%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.54B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.66%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 19.09
Fwd PE 14.52
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.61
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.37%
ROE 27.64%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.13%
PM (TTM) 17.92%
GM 23.79%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 1.79
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.53
Quick Ratio 0.95
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-43.93%
EPS 3Y5.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y31.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.1%
Revenue growth 3Y24.6%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y