Celanese Corp

CE

Plastic Material, Synth Resin/Rubber, Cellulos (No Glass)

Mkt Cap

$16.49B

PE

8.29

Debt

$15.87B

Cash

$1.483B

EV

$30.88B

FCF

$1.555B

Market Cap

$16.49B

P/E Ratio

8.29

Debt

$15.87B

Cash

$1.483B

EV

$30.88B

FCF

$1.555B

Charts data: {"Earnings":[{"time":"2014-12-30","value":620000000},{"time":"2015-12-30","value":285000000},{"time":"2016-12-30","value":900000000},{"time":"2017-12-30","value":843000000},{"time":"2018-12-30","value":1207000000},{"time":"2019-12-30","value":852000000},{"time":"2020-12-30","value":1985000000},{"time":"2021-12-30","value":1890000000},{"time":"2022-12-30","value":1894000000},{"time":"2023-12-30","value":1960000000}],"Sales":[{"time":"2014-12-30","value":6802000000},{"time":"2015-12-30","value":5674000000},{"time":"2016-12-30","value":5389000000},{"time":"2017-12-30","value":6140000000},{"time":"2018-12-30","value":7155000000},{"time":"2019-12-30","value":6297000000},{"time":"2020-12-30","value":5655000000},{"time":"2021-12-30","value":8537000000},{"time":"2022-12-30","value":9673000000},{"time":"2023-12-30","value":10940000000}],"Net Margins":[{"time":"2014-12-30","value":0.0911496618641576},{"time":"2015-12-30","value":0.05022911526260134},{"time":"2016-12-30","value":0.16700686583781776},{"time":"2017-12-30","value":0.13729641693811076},{"time":"2018-12-30","value":0.1686932215234102},{"time":"2019-12-30","value":0.13530252501191042},{"time":"2020-12-30","value":0.3510167992926614},{"time":"2021-12-30","value":0.22138924680801217},{"time":"2022-12-30","value":0.1958027499224646},{"time":"2023-12-30","value":0.17915904936014626}],"Assets":[{"time":"2014-12-30","value":8818000000},{"time":"2015-12-30","value":8586000000},{"time":"2016-12-30","value":8357000000},{"time":"2017-12-30","value":9538000000},{"time":"2018-12-30","value":9313000000},{"time":"2019-12-30","value":9476000000},{"time":"2020-12-30","value":10909000000},{"time":"2021-12-30","value":11975000000},{"time":"2022-12-30","value":26272000000},{"time":"2023-12-30","value":26597000000}],"Stockholders Equity":[{"time":"2014-12-30","value":3078000000},{"time":"2015-12-30","value":2829000000},{"time":"2016-12-30","value":3021000000},{"time":"2017-12-30","value":3299000000},{"time":"2018-12-30","value":3379000000},{"time":"2019-12-30","value":2898000000},{"time":"2020-12-30","value":3895000000},{"time":"2021-12-30","value":4537000000},{"time":"2022-12-30","value":6105000000},{"time":"2023-12-30","value":7552000000}],"ROE":[{"time":"2014-12-30","value":0.2014294996751137},{"time":"2015-12-30","value":0.1007423117709438},{"time":"2016-12-30","value":0.29791459781529295},{"time":"2017-12-30","value":0.25553197938769323},{"time":"2018-12-30","value":0.3572062740455756},{"time":"2019-12-30","value":0.2939958592132505},{"time":"2020-12-30","value":0.5096277278562259},{"time":"2021-12-30","value":0.41657482918227906},{"time":"2022-12-30","value":0.31023751023751023},{"time":"2023-12-30","value":0.2595338983050847}],"ROA":[{"time":"2014-12-30","value":0.10671354048537084},{"time":"2015-12-30","value":0.05683671092476124},{"time":"2016-12-30","value":0.12324997008495872},{"time":"2017-12-30","value":0.11270706647095827},{"time":"2018-12-30","value":0.16213894555996994},{"time":"2019-12-30","value":0.10426340227944281},{"time":"2020-12-30","value":0.20634338619488496},{"time":"2021-12-30","value":0.18772442588726512},{"time":"2022-12-30","value":0.05408800243605359},{"time":"2023-12-30","value":0.0634282061886679}]}

Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. The company operates through Engineered Materials 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 for the food and beverage industry, and food protection ingredients, such as potassium sorbate and sorbic acid. 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.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Celanese Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.555B	$1.736B	$1.925B	$2.12B	$2.32B	$2.521B	$2.721B	$2.917B	$3.106B	$3.284B	$3.449B	$34.49B
DCF		$1.509B	$1.455B	$1.394B	$1.326B	$1.253B	$1.176B	$1.097B	$1.015B	$933.6M	$852.4M	$8.524B
Value	$20.54B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 20%

Earnings Stability 64%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5%	17%	14%	17%	14%	35%	22%	20%	18%	19%
ROA	5.7%	12%	11%	16%	10%	21%	19%	5.4%	6.3%	6.3%
ROE	10%	30%	26%	36%	29%	51%	42%	31%	26%	26%

What is the average Net Margin?

The average Net Margin over the past 5 years is +20.86%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.3%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.97%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.89%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +35.79%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.52%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	5.32	4.72	6.95	3.21	3.64	4.26	3.50	11.96	11.11	10.21
Debt Equity	1.08	1.01	1.13	1.16	1.36	1.07	0.99	2.50	1.96	2.11
MIN
Graham Stability	-	-	100%	100%	87%	100%	100%	100%	100%	87%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 10.21.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.82.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.87.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	11%	8.9%	25%	13%	3.7%
Net Income	12%	10%	-0.42%	3.5%	-5.4%
Stockholders Equity	14%	17%	25%	24%	4.3%
FCF	11%	1.7%	11%	4.3%	-1.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.86%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +3.68%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +10.18%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -5.4%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +17.45%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +4.28%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +1.74%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.51%.