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Celanese Corp Class A CE

Morningstar Rating
$149.42 −0.17 (0.11%)
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Company Report

Celanese Earnings: Reduced Input Costs Aid Profit Recovery Despite Weak Demand Environment

Celanese's fourth-quarter results reflected the benefit of favorable input costs versus global competitors, which underpins our narrow moat rating based on cost advantage. Despite customer inventory destocking leading to a 3% year-over-year volume decline and 3% lower prices versus the prior-year quarter, operating EBITDA grew 34% year over year. The company benefited from lower prices for US natural gas, which is Celanese's primary feedstock, while prices are often set by marginal-cost producers that use higher-cost European or Asian natural gas or Brent oil-based feedstock. Having updated our model to incorporate the fourth-quarter results, we are maintaining our $160 fair value estimate. Our narrow moat rating is also unchanged.

Price vs Fair Value

CE is trading at a 7% discount.
Price
$149.59
Fair Value
$879.00
Uncertainty
High
1-Star Price
$681.00
5-Star Price
$59.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Celanese built out its core acetic acid production facilities at a significantly lower capital cost per ton than its competitors thanks to the scale of its facilities (2 million tons versus average 0.5 million tons).

Bears

Celanese's acetyl chain business will face long-term margin pressure from a more narrow spread between Brent oil and U.S. natural gas.

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News

Trading Information

Previous Close Price
$149.59
Day Range
$147.53150.66
52-Week Range
$97.12159.06
Bid/Ask
$145.12 / $151.50
Market Cap
$16.27 Bil
Volume/Avg
657,852 / 818,242

Key Statistics

Price/Earnings (Normalized)
18.43
Price/Sales
1.50
Dividend Yield (Trailing)
1.87%
Dividend Yield (Forward)
1.87%
Total Yield
1.87%

Company Profile

Celanese is one of the world's largest producers of acetic acid and its downstream derivative chemicals, which are used in various end markets, including coatings and adhesives. The company is also one of the largest producers of specialty polymers, which are used in the automotive, electronics, medical, building, and consumer end markets. The company also makes cellulose derivatives used in cigarette filters.
Sector
Basic Materials
Industry
Chemicals
Stock Style Box
Mid Value
Total Number of Employees
12,410

Competitors

Valuation

Metric
CE
DD
EMN
Price/Earnings (Normalized)
18.4320.0113.51
Price/Book Value
2.301.231.86
Price/Sales
1.502.601.12
Price/Cash Flow
11.8113.399.54
Price/Earnings
CE
DD
EMN

Financial Strength

Metric
CE
DD
EMN
Quick Ratio
0.881.540.66
Current Ratio
1.532.431.35
Interest Coverage
2.591.885.79
Quick Ratio
CE
DD
EMN

Profitability

Metric
CE
DD
EMN
Return on Assets (Normalized)
3.75%3.90%5.18%
Return on Equity (Normalized)
16.00%6.14%14.43%
Return on Invested Capital (Normalized)
6.65%5.18%8.84%
Return on Assets
CE
DD
EMN
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