NYSE:CE

Stock Analysis Report

Executive Summary

Celanese Corporation, a technology and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Celanese's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.9%

CE

-4.4%

US Chemicals

-2.0%

US Market


1 Year Return

-36.6%

CE

-33.8%

US Chemicals

-15.1%

US Market

Return vs Industry: CE underperformed the US Chemicals industry which returned -33.6% over the past year.

Return vs Market: CE underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

CEIndustryMarket
7 Day-5.9%-4.4%-2.0%
30 Day-29.2%-24.7%-19.7%
90 Day-44.0%-31.1%-23.2%
1 Year-35.1%-36.6%-29.5%-33.8%-13.4%-15.1%
3 Year-22.6%-27.2%-12.7%-29.6%10.9%3.7%
5 Year25.8%13.9%-3.5%-24.5%28.4%14.4%

Price Volatility Vs. Market

How volatile is Celanese's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Celanese undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CE ($68.6) is trading below our estimate of fair value ($152.58)

Significantly Below Fair Value: CE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CE is good value based on its PE Ratio (9.9x) compared to the Chemicals industry average (14.1x).

PE vs Market: CE is good value based on its PE Ratio (9.9x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: CE is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CE is overvalued based on its PB Ratio (3.3x) compared to the US Chemicals industry average (1.4x).


Next Steps

Future Growth

How is Celanese forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CE's forecast earnings growth (15.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CE's earnings (15.6% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: CE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CE's revenue (2.2% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: CE's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CE's Return on Equity is forecast to be very high in 3 years time (44.7%).


Next Steps

Past Performance

How has Celanese performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CE has high quality earnings.

Growing Profit Margin: CE's current net profit margins (13.6%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: CE's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: CE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CE had negative earnings growth (-29.2%) over the past year, making it difficult to compare to the Chemicals industry average (-11.3%).


Return on Equity

High ROE: Whilst CE's Return on Equity (29.81%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Celanese's financial position?


Financial Position Analysis

Short Term Liabilities: CE's short term assets ($2.8B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: CE's short term assets ($2.8B) do not cover its long term liabilities ($4.8B).


Debt to Equity History and Analysis

Debt Level: CE's debt to equity ratio (131.2%) is considered high.

Reducing Debt: CE's debt to equity ratio has increased from 88.5% to 131.2% over the past 5 years.

Debt Coverage: CE's debt is well covered by operating cash flow (38.3%).

Interest Coverage: CE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CE has a high level of physical assets or inventory.

Debt Coverage by Assets: CE's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Celanese's current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CE's dividend (3.62%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: CE's dividend (3.62%) is low compared to the top 25% of dividend payers in the US market (5.7%).


Stability and Growth of Payments

Stable Dividend: CE's dividends per share have been stable in the past 10 years.

Growing Dividend: CE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.7%), CE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CE's dividends in 3 years are forecast to be well covered by earnings (25.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Lori Ryerkerk (56yo)

0.92

Tenure

US$6,027,803

Compensation

Ms. Lori J. Ryerkerk, BS, serves as President, Chief Executive Officer and Director of Celanese Corporation since May 1, 2019. She served as an Executive Vice President, Global Manufacturing for Royal Dutc ...


CEO Compensation Analysis

Compensation vs Market: Lori's total compensation ($USD6.03M) is about average for companies of similar size in the US market ($USD7.63M).

Compensation vs Earnings: Insufficient data to compare Lori's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Rohr
Executive Chairman of the Board8yrsUS$5.24m0.55% $44.3m
Lori Ryerkerk
President0.92yrUS$6.03m0.033% $2.7m
Scott Richardson
Senior VP & CFO2.17yrsUS$2.38m0.025% $2.0m
A. Puckett
Senior VP & General Counsel1.17yrsUS$3.86m0.019% $1.5m
Shannon Jurecka
Senior VP & Chief Human Resources Officer2.75yrsUS$1.46m0.0057% $458.9k
Todd Elliott
Senior Vice President of Acetyls Chain2.58yrsUS$2.30m0.030% $2.4m
Benita Casey
Chief Accounting Officer2yrsno data0.0010% $83.4k
Verghese Thomas
VP and Chief Technology & Innovation Officer3.75yrsno datano data
Surabhi Varshney
Vice President of Investor Relationsno datano datano data
Kevin Oliver
Chief Financial Officer for European Headquarters2yrsUS$3.67m0.016% $1.3m

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: CE's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Rohr
Executive Chairman of the Board8yrsUS$5.24m0.55% $44.3m
Lori Ryerkerk
President0.92yrUS$6.03m0.033% $2.7m
Jean Blackwell
Independent Director6.17yrsUS$269.96k0.0033% $266.4k
John Wulff
Independent Director13.67yrsUS$274.96k0.017% $1.3m
Edward Galante
Lead Independent Director3.17yrsUS$279.96k0.0056% $447.7k
Jay Ihlenfeld
Independent Director8.17yrsUS$269.96k0.0047% $377.9k
William Brown
Independent Director4.25yrsUS$254.96k0.000090% $7.2k
Kathryn Hill
Independent Director4.75yrsUS$274.96k0.0052% $417.2k
Kim K. Rucker
Independent Director1.5yrsUS$254.96k0.000050% $4.0k
David Hoffmeister
Independent Director14.25yrsUS$254.96k0.036% $2.9m

5.5yrs

Average Tenure

64yo

Average Age

Experienced Board: CE's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Celanese Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Celanese Corporation
  • Ticker: CE
  • Exchange: NYSE
  • Founded: 1918
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$8.023b
  • Shares outstanding: 119.57m
  • Website: https://www.celanese.com

Number of Employees


Location

  • Celanese Corporation
  • 222 West Las Colinas Boulevard
  • Suite 900N
  • Irving
  • Texas
  • 75039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2005
DG3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2005
0HURLSE (London Stock Exchange)YesCommon StockGBUSDJan 2005
DG3BRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 2005
C1NS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Celanese Corporation, a technology and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. The company operates through Engineered Materials, Acetate Tow, and Acetyl Chain segments. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. It also offers acesulfame potassium, a sweetener for use in various beverages, confections, and dairy products; and food protection ingredients, such as potassium sorbate and sorbic acid for use in foods, beverages, and personal care products. The Acetate Tow segment provides acetate tows and flakes for use in filter products applications. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:15
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.