Fundamental analysis: Celanese Corporation (CE)

Awarener score: 7.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Lacking) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been growing at a low pace. It's been similar to peer companies.
Celanese Corporation business shows some variation, there's some risk. It looks slightly worse than rivals.

Margins score: 7.8

CE profit margins -on goods and services sold- are usually meagre. They stand better than most rival companies.
Business profit on sales tends to be very good. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain great when measured against rivals.
Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 5.7

Celanese Corporation profit -on goods and services sold- has been growing at a normal pace. It's been rather normal in relation to competitors.
In recent years, earnings -on operations- have been growing at a normal step, which has been well ranked against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares weak when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be in a weak position compared to similar stocks.
In past years, profits -before income taxes- grew at a low speed. It was somewhat worse than rivals.
In the previous years, growth trend on total net profit has been good, and weak when measured against peer companies.
Earnings per share have grown at a good rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 9.3

CE managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been slightly better than peers.
Research and development expenses hardly consume a portion of revenues. It's below average when measured against competitors.
The company shows very good business growth in relation to research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 9.8

Celanese Corporation usually gets huge returns on the resources it controls. It proves encouraging in relation to peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks great when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 7.4

CE usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands more than average in relation to rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is more than average in relation to industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came slightly worse than competitors.
Dividend payments have been more or less stable in recent years. The company has behaved close to average when compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks slightly worse than comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.8

Celanese Corporation intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be a disappointment compared to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains bottom tier against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a very weak position compared to peer firms.
For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks last-in-rank when measured against peers.
Normally has approximately five months of sales worth in inventory. It comes up as a disappointment compared to competitors.
On average, it takes higher than six months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers approximately three months after the purchase. It ranks top tier when measured against industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is slightly low when yearly sales are considered, business volume should be increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 6.5

Celanese Corporation looks cheap in relation to profits and financial position. It happens to be below average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company generated some good free funds in relation to the stock price, which stands somewhat better than similar companies.
The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still similar to industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks bottom tier against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks similar to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a disappointment compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be substantially worse when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in a very weak position compared to peer companies.

Total score: 6.9

Company at a glance: Celanese Corporation (CE)

Sector, industry: Basic Materials, Chemicals

Market Cap: 12.48 billions

Revenues TTM: 9.67 billions

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 three segments: Engineered Materials, Acetate Tow, and Acetyl Chain. 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. In addition, it manufactures ultra-high molecular weight polyethylene. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.