Celanese (CE) AI Stock Analysis

• Market Cap: $4.29B
• Dividend Yield: 5.55%
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.14
• Revenue Growth: -6.03%
• EPS Growth: -177.29%
• Country: US
• Employees: 12,163
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -13.92
• Shares Outstanding: 111,754,190
• 10 Day Avg. Volume: 4,115,086
• 30 Day Avg. Volume: 4,172,468
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.61
• Price to Cash Flow (P/CF): 3.20
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.39
• Price Target Upside: 57.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

Celanese faces significant challenges with declining revenues and profitability pressures, reflected in its financial performance and bearish technical indicators. The earnings call presents a proactive approach to cost management and leadership restructuring, offering some optimism for future improvements. However, current valuation metrics and stock momentum remain concerning, resulting in a moderate overall stock score.

Positive Factors

Financial Performance

Recent cost savings programs are helping the company, with more expected to be announced.

Growth Opportunities

Celanese is intensifying its efforts to penetrate the EV market, which could offer growth opportunities.

Market Valuation

Improved forward visibility both in terms of operations and leverage overhang as investors re-visit the stock and valuation migrates back upward.

Negative Factors

Competitive Position

The company's performance appears weaker compared to its competitors, such as LYB and Dow.

Demand Weakness

Weak demand and seasonal softness are affecting Celanese's performance in the short term.

Financial Guidance

The company's March EBIT guidance is significantly below consensus estimates, indicating potential challenges ahead.

Celanese Business Overview & Revenue Model

Company Description

Celanese Corporation (CE) is a global technology and specialty materials company headquartered in Irving, Texas. The company operates in the chemical industry, focusing on the production of high-performance engineered polymers and acetyl products. Celanese serves various sectors, including automotive, consumer goods, industrial, and medical, providing innovative solutions that enhance the performance and durability of finished products.

How the Company Makes Money

Celanese makes money primarily through the manufacturing and sale of its chemical products, which are divided into two main business segments: Engineered Materials and Acetyl Chain. The Engineered Materials segment generates revenue by producing high-performance polymers and elastomers used in automotive, consumer electronics, and medical applications. The Acetyl Chain segment contributes to revenue through the production of acetyl intermediates, such as acetic acid, vinyl acetate monomer, and emulsions, which are essential in the manufacturing of paints, adhesives, coatings, and textiles. Revenue is driven by a combination of long-term contracts and spot sales, with pricing influenced by raw material costs, market demand, and competitive dynamics. Celanese also engages in strategic partnerships and joint ventures to expand its market reach and enhance its product offerings.

Celanese Financial Statement Overview

Summary

Celanese is experiencing a tough period with declining revenues and profitability pressures. The income statement shows negative EBIT and net income, while the balance sheet reflects a stable financial structure, albeit with a negative return on equity. The cash flow statement indicates a significant reduction in free cash flow, highlighting areas of concern despite some resilience in core operations.

Income Statement

The income statement for TTM indicates a challenging period with a negative EBIT and net income, leading to a net profit margin of -14.81%. However, the gross profit margin remains healthy at 22.23%, showing some resilience in core operations. The revenue has declined by 6.03% compared to the previous year, showcasing potential market or operational pressures.

Balance Sheet

The balance sheet shows a reasonable equity ratio of 22.63%, indicating a stable financial structure. The debt-to-equity ratio stands at 0.35, suggesting manageable leverage. However, the return on equity is negative at -29.42%, reflecting the impact of recent losses on shareholder returns.

Cash Flow

The cash flow statement reveals a significant reduction in free cash flow, with a growth rate of -52.21% compared to the previous year. The operating cash flow to net income ratio is negative due to net losses, but the company maintains a positive free cash flow to net income ratio, indicating some capacity to generate cash despite profitability challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.28B	10.94B	9.67B	8.54B	5.66B
	Gross Profit
2.36B	2.60B	2.38B	2.68B	1.29B
	EBIT
-697.00M	1.69B	1.38B	1.95B	664.00M
	EBITDA
503.00M	2.61B	2.29B	2.72B	2.71B
	Net Income Common Stockholders
-1.52B	1.96B	1.89B	1.89B	1.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
962.00M	1.80B	1.51B	546.00M	1.49B
	Total Assets
22.86B	26.60B	26.27B	11.97B	10.91B
	Total Debt
1.79B	14.10B	15.04B	4.17B	3.93B
	Net Debt
833.00M	12.29B	13.54B	3.63B	2.98B
	Total Liabilities
17.25B	19.05B	20.17B	7.44B	7.01B
	Stockholders Equity
5.17B	7.09B	5.64B	4.19B	3.53B
Cash Flow		Free Cash Flow
966.00M	1.33B	1.28B	1.29B	486.00M
	Operating Cash Flow
966.00M	1.90B	1.82B	1.76B	850.00M
	Investing Cash Flow
-470.00M	-134.00M	-11.14B	-1.12B	592.00M
	Financing Cash Flow
-1.31B	-1.46B	10.29B	-1.04B	-1.47B

Celanese Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CE, the sentiment is Negative. The current price of 38.38 is below the 20-day moving average (MA) of 51.79, below the 50-day MA of 56.21, and below the 200-day MA of 95.15, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 26.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CE.

Celanese Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLKP	81 Outperform	$792.16M	12.69	11.98%	8.39%	-4.61%	14.90%
DOW	61 Neutral	$19.21B	17.43	6.14%	9.85%	-3.72%	91.57%
CE	50 Neutral	$4.29B	6.84	-24.69%	5.55%	-6.03%	-177.29%
HUN	50 Neutral	$2.34B	―	-5.22%	7.33%	-1.23%	-277.52%
TROX	50 Neutral	$797.06M	―	-2.60%	9.56%	7.82%	84.90%
Sector *	47 Neutral	$2.49B	-2.97	-22.82%	3.51%	4.13%	-28.53%
BAK	42 Neutral	$1.38B	―	-8638.28%	―	1.97%	-121.00%

Celanese Corporate Events

Celanese to Present Q4 and Full Year 2024 Results

On February 19, 2025, Scott A. Richardson, President and CEO of Celanese Corporation, will present the company’s financial results for Q4 and full year 2024 via a webcast. This presentation will include references to Non-US GAAP financial measures, with reconciliations available on the company’s website.

Celanese Expands Board, Elects Scott Sutton as Director

On February 13, 2025, Celanese Corporation’s Board of Directors expanded from 12 to 13 members, electing Scott Sutton as a director effective March 1, 2025. Sutton is a seasoned professional in the chemicals industry, previously holding leadership roles at Olin Corporation and Celanese. He will co-chair the newly established Finance and Business Review Committee, aimed at overseeing the company’s financial health and strategic initiatives, which signals Celanese’s commitment to improving its financial strategy and stakeholder value. Sutton’s election and the committee’s formation are expected to bolster the company’s financial oversight and strategic execution.

Celanese Appoints Todd Elliott as SVP of Engineered Materials

Celanese Corporation announced a leadership change with the appointment of Todd Elliott as Senior Vice President of Engineered Materials, effective February 3, 2025. Elliott, who previously held various leadership roles at Celanese, will replace Thomas Kelly, who will assist in the transition until March 10, 2025. This leadership change is expected to enhance operational efficiency and strengthen Celanese’s competitive position, driving growth and profitability. The move reflects the company’s strategic focus on reducing costs, optimizing its capital structure, and delivering value to employees, customers, and shareholders.