Corporate Webpages Celanese Corporation
While the following statements will not impress outside readers,
are internal traders will "get a laugh." Celanese Corporation
(CE) was selected for review for all the wrong reasons. We
initially thought its ticker was "CZ" which matched the initials
of our company president. (There is no stock with ticker "CZ.")
We were impressed with the product "Celotex," used for
insulation and as a building material that provides excellent
sound absorption for acoustics. Celanese Corp. does not make
Celotex; it is made by a British corporation and manufactured in
Canada where it is sparsely-used.
Having confessed to that, Celanese Corp. is a diversified
chemical manufacturer of chemicals, especially those related to
acetic acid, and often used by automotive manufacturers. It is
often praised on the basis of strong fundamentals, but we found
it has extraordinarily-high debt. Its history includes a failed
takeover attempt by Blackstone Group, and an allegiance to
certain German interests even though it nominally is based in
Texas. It has related entities in many other countries traded
as separate stocks, and the relationship is very unclear to us.
SEC reports were not helpful in this regard. But we can say
that 75% of its revenues come from outside North America.
Its management is overpaid in our opinion. The company has
exported lots of American jobs to overseas and closed many
plants. It is especially anxious to establish a manufacturing
foothold in China.
Celanese uses a lot of natural gas in producing plastics. Low
costs of natural gas have benefitted the company temporarily.
The company has sought to develop technologies and markets for
ethanol produced from natural gas, although this source is not
considered "renewable." It nonetheless represents competition
for corn as the source. It needs more support and incentive
from Government to make this speculative venture profitable.
Ethanol from natural gas (methane) is cheaper to produce than
ethanol from corn. Many of Celanese's advanced techologies for
cheaply producing acetic acid, plastics, and ethanol can be
imitated by substantial competitors of which it has quite a few
including Eastman Chemical and British Petroleum.
The diversified chemical group is enjoying some cyclical
strength in which Celanese stock is participating, but it also
enjoys some immunity to cyclicality by its use in certain
consumer product staples like the food group.
The shift toward more fuel-efficient vehicles is a primary
speculative hope supporting Celanese stock.
01-25-2012: Celanese Corporation (CE): Possible Fuel-Efficient Vehicle Play
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
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Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Celanese Corporation (CE ) Sector: Basic Materials
1601 West LBJ Freeway Industry: Chemicals - Major Diversified
Dallas, TX 75234-6034 Exchange: NYSE
Celanese Corporation manufactures and markets chemical products worldwide.
It involves in processing chemical raw materials, such as methanol, carbon
monoxide and ethylene, and natural products, including wood pulp into
value-added chemicals, and thermoplastic polymers. The company's Advanced
Engineered Materials segment develops, produces, and supplies specialty
polymers for application in automotive, medical, and electronics products,
as well as other consumer and industrial applications. Its Consumer
Specialties segment offers acetate tow, which is used in the production of
filter products, as well as acetate flake that is processed into acetate
fiber. It also produces and sells Sunett, a sweetener; and food protection
ingredients, such as sorbates and sorbic acid for the food, beverage, and
pharmaceutical industries. The company's Industrial Specialties segment
produces emulsions and ethylene vinyl acetate (EVA) performance polymers.
Its emulsions products are used in applications, such as paints and
coatings, adhesives, construction, glass fiber, textiles, and paper; and
EVA performance polymers are used in flexible packaging films, lamination
film products, hot melt adhesives, medical devices and tubing, automotive,
carpeting, and solar cell encapsulation film applications. Its Acetyl
acetic acid, vinyl acetate monomer, acetic anhydride, and acetate esters
used as starting materials for colorants, paints, adhesives, coatings, and
medicines, as well as produces other chemicals consisting of organic
solvents and intermediates for pharmaceutical, agricultural, and chemical
products. Celanese Corporation was formerly known as Blackstone Crystal
Holdings Capital Partners (Cayman) IV Ltd. and changed its name in
November, 2004. The company was founded in 2004 and is headquartered in
Dallas, Texas.
Last Trade: 47.86 52-Week Range: 58.68 - 29.43
Trade Date: 01-23 Avg. Volume: 1,833,170 Shares
Index Membership: Employees: 7,250
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation (Low
Concern), Shareholder Rights (Medium Concern).
EPS: 3.59 Dividend Amount: $ 0.24 Yield: 0.50%
Ex-Dividend Date: Jan 13, 20 Mkt Cap: $ 7,500,000K
Payout Ratio: 6.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 9,810,000K Revenue (ttm) : $ 6,660,000K
Gross Profit: $ 1,180,000K
Earnings before Income Tax, Depreciation and Amortization: $ 1,080,000K
Enterprise Value/Revenue (ttm): 1.47 Revenue per Share: $ 42.65
Enterprise Value/EBITDA (ttm): 9.10 Qtrly Rev Growth (y to y): 20.00%
P/E Ratio (fwd projected): 10.20 P/E Ratio (current): 13.38
P/E Growth Ratio (5 yr expected): 0.80 Operating Margin: 11.73%
Price/Sales Ratio: 1.12 Profit Margin: 8.56%
Price/Book Value: 5.13 Book Value: $ 9.33/sh.
Return on Assets: 5.71% Net Income Avl to Common: $ 613,000K
Return on Equity: 51.67% Diluted Earnings/Share: $ 3.59
Qrtly Earnings Growth (yoy): 15.20%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 768,000K Operating Cash Flow:$ 570,000K
Total Debt: $ 3,110,000K Lvgd Free Cash Flow:$ -74,880K
Total Debt/Equity: 213.32
Total Cash/Share: $ 4.92
Current Ratio: 1.80
Share Statistics: Stock Price History:
Shares Outstanding: 156,100K Stk 52-Week Change: 17.42%
Float: 155,300K S&P 500 52-Wk Chng: 1.90%
Sh. Short % of Float: 2.80% 50-Day Moving Avg: 44.81
Short Ratio: 2.50 200-Day Moving Avg: 44.14
% Held by Institutions: 97.50% Beta: 2.42
% Held by Insiders: 0.43%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec 11 Mar 12 Dec 11 Dec 12
Average Earnings Estimate 0.69 0.97 4.60 4.71
Average Revenue Estimate 600M 1,700M 6,740M 7,080M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 25.167 EPS Growth (Qrtly YoY): 3.974
PEG Ratio (ttm, 5 yr expected): 188.420 P/E Ratio (ttm): 11.282
Revenue Growth (Qrtly YoY): 4.081
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 5,918,000 5,082,000 6,823,000
Cost of Revenue 4,738,000 4,079,000 5,567,000
Gross Profit 1,180,000 1,003,000 1,256,000
Operating Expenses:
Research & Development 70,000 70,000 80,000
Selling, General & Administrative 551,000 610,000 540,000
Non-Recurring Expenses 0 0 116,000
Other Operating Expenses 61,000 77,000 76,000
Total Operating Expenses 0 0 812,000
Operating Income or Loss 503,000 290,000 444,000
Income from Continuing Operations:
Total Other Income/Expenses Net 76,000 113,000 197,000
Earnings Before Interest & Taxes 742,000 458,000 695,000
Interest Expense 204,000 207,000 261,000
Income Before Taxes 538,000 251,000 434,000
Income Tax Expense 112,000 -243,000 63,000
Minority Interest 0 0 1,000
Net Income from Continuing Op.s 426,000 494,000 372,000
Non-recurring Events:
Discontinued Operations -47,000 4,000 -90,000
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 377,000 498,000 282,000
Preferred Stock & Other Adjustmnts -3,000 -10,000 -10,000
Net Income Avail To Common Shares 374,000 488,000 272,000
Quarterly Income Statements: All numbers in thousands)
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Total Revenue 1,807,000 1,753,000 1,589,000 1,507,000
Cost of Revenue 1,406,000 1,343,000 1,238,000 1,194,000
Gross Profit 401,000 410,000 351,000 313,000
Operating Expenses:
Research & Development 24,000 25,000 23,000 18,000
Selling, General & Adminis. 164,000 158,000 125,000 131,000
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 17,000 17,000 16,000 16,000
Total Operating Expenses 0 0 0 0
Operating Income or Loss 196,000 209,000 188,000 140,000
Income from Continuing Operations:
Total Other Income/Expenses Net 2,000 81,000 5,000 3,000
Earnings Before Int. & Taxes 255,000 337,000 235,000 188,000
Interest Expense 54,000 57,000 55,000 58,000
Income Before Taxes 201,000 280,000 180,000 130,000
Income Tax Expense 34,000 75,000 42,000 27,000
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 167,000 205,000 138,000 103,000
Non-recurring Events:
Discontinued Operations 0 -2,000 4,000 -43,000
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 167,000 203,000 142,000 58,000
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 167,000 203,000 142,000 58,000
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 740,000 1,254,000 676,000
Short Term Investments 78,000 3,000 6,000
Net Receivables 1,172,000 1,025,000 983,000
Inventory 610,000 522,000 577,000
Other Current Assets 68,000 52,000 42,000
Total Current Assets 2,668,000 2,856,000 2,284,000
Long-Term Investments 838,000 872,000 883,000
Property, Plant & Equipt 3,017,000 2,797,000 2,472,000
Goodwill 774,000 798,000 779,000
Intangible Assets 252,000 294,000 364,000
Accumulated Amortization 0 0 0
Other Assets 289,000 311,000 357,000
Deferred Long Term Asset Charges 443,000 484,000 27,000
Total Assets 8,281,000 8,412,000 7,166,000
Current Liabilities:
Accounts Payable 718,000 754,000 562,000
Short/Current Long Term Debt 228,000 242,000 298,000
Other Current Liabilities 596,000 611,000 509,000
Total Current Liabilities 1,542,000 1,607,000 1,369,000
Long Term Debt 2,990,000 3,259,000 3,376,000
Other Liabilities 2,707,000 2,823,000 1,689,000
Deferred LT Liability Charges 116,000 137,000 548,000
Minority Interest 0 0 2,000
Negative Goodwill 0 0 0
Total Liabilities 7,355,000 7,826,000 6,984,000
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 0 0 0
Retained Earnings 1,851,000 1,505,000 1,047,000
Treasury Stock -829,000 -781,000 -781,000
Capital Surplus 574,000 522,000 495,000
Other Stockholder Equity -670,000 -660,000 -579,000
Total Stockholder Equity 926,000 586,000 182,000
Net Tangible Assets -100,000 -506,000 -961,000
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Current Assets:
Cash & Cash Equivalents 704,000 741,000 722,000 740,000
Short Term Investments 64,000 70,000 74,000 78,000
Net Receivables 1,282,000 1,361,000 1,313,000 1,172,000
Inventory 777,000 779,000 688,000 610,000
Other Current Assets 71,000 63,000 54,000 68,000
Total Current Assets 2,898,000 3,014,000 2,851,000 2,668,000
Long-Term Investments 841,000 838,000 822,000 838,000
Property, Plant & Equipt 3,233,000 3,273,000 3,153,000 3,017,000
Goodwill 780,000 813,000 804,000 774,000
Intangible Assets 213,000 238,000 252,000 252,000
Accumulated Amortization 0 0 0 0
Other Assets 334,000 309,000 302,000 289,000
Deferred LT Asset Charges 412,000 434,000 438,000 443,000
Total Assets 8,711,000 8,919,000 8,622,000 8,281,000
Current Liabilities:
Accounts Payable 869,000 911,000 837,000 718,000
Current Portion LT Debt 161,000 155,000 219,000 228,000
Other Current Liabilities 583,000 575,000 554,000 596,000
Total Current Liabilities 1,613,000 1,641,000 1,610,000 1,542,000
Long Term Debt 2,893,000 2,893,000 3,003,000 2,990,000
Other Liabilities 2,633,000 2,888,000 2,751,000 2,707,000
Deferred LT Liab. Charges 116,000 124,000 122,000 116,000
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 7,255,000 7,546,000 7,486,000 7,355,000
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 0 0 0 0
Retained Earnings 2,338,000 2,180,000 1,985,000 1,851,000
Treasury Stock -857,000 -842,000 -832,000 -829,000
Capital Surplus 601,000 601,000 583,000 574,000
Other Stockholder Equity -626,000 -566,000 -600,000 -670,000
Total Stockholder Equity 1,456,000 1,373,000 1,136,000 926,000
Net Tangible Assets 463,000 322,000 80,000 -100,000
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 377,000 203,000 282,000
Operating Activites:
Depreciation 300,000 319,000 360,000
Adjustments to Net Income 37,000 -359,000 81,000
Changes in Accounts Recv'bls -90,000 -79,000 339,000
Changes in Liabilities -83,000 178,000 -550,000
Changes in Inventories -98,000 30,000 21,000
Changes in Other Op'ing Actv's 0 9,000 53,000
Total Cash Flow fr Operations 452,000 596,000 586,000
Investing Activities:
Capital Expenditures -513,000 -527,000 -459,000
Investments 0 15,000 111,000
Other Cash Flows fr Investing 0 543,000 147,000
Total Cash Flows fr Investing -560,000 31,000 -201,000
Financing Acitivies:
Dividends Paid -31,000 -33,000 -34,000
Sale or Purchase of Stock -34,000 14,000 -360,000
Net Borrowings -313,000 -89,000 -98,000
Other Cash Flows fr Financing 0 -1,000 -7,000
Total Cash Flows fr Financing -388,000 -112,000 -499,000
Effect of Exchange Rate Change -18,000 63,000 -35,000
Change in Cash & Cash Equiv.s -514,000 578,000 -149,000
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Net Income 167,000 203,000 142,000 58,000
Operating Activites:
Depreciation 80,000 76,000 75,000 74,000
Adjustments to Net Income -10,000 27,000 25,000 13,000
Changes in Accounts Recv'bls 20,000 -87,000 -108,000 72,000
Changes in Liabilities -84,000 43,000 76,000 -91,000
Changes in Inventories -22,000 -85,000 -60,000 -35,000
Changes in Other Oper'g Acts 0 7,000 -18,000 -2,000
Total Cash Flow f Operations 165,000 184,000 132,000 89,000
Investing Activities:
Capital Expenditures -150,000 -134,000 -131,000 -172,000
Investments 0 0 0 0
Other Cash Flows fr Investing 0 152,000 -20,000 -7,000
Total Cash Flows fr Investing -163,000 18,000 -151,000 -179,000
Financing Acitivies:
Dividends Paid -9,000 -8,000 -8,000 -8,000
Sale or Purchase of Stock -13,000 2,000 2,000 -1,000
Net Borrowings 5,000 -173,000 -3,000 -61,000
Other Cash Flows fr Financing -9,000 0 -2,000 14,000
Total Cash Flows fr Financing -26,000 -187,000 -11,000 -56,000
Effect of Exchange Rate Chg 0 0 0 4,000
Change in Cash & Cash Equiv. -37,000 19,000 -18,000 -144,000
CE Celanese Corporation [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 2.0927 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 0.4000 Forward P/E Ratio < 28? 2.7451
Sales Tests:
Price/Sales Ratio < 2.3? 2.0536 Inventory/Sales < 5%? 0.4851
Sales < $1 billion? 0.1690 Operating Margin < 7.5%? 0.6394
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0019 Long-Term Debt Service: 0.3097
LTD Being Reduced? 1.8000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.9000 Working Capital >= 1.5? 1.1132
Leverage Ratio < 20%? 0.6017 Debt / Assets < 1? 2.7696
Quick Ratio > 1? 1.2312 Inventory Turnover > 1? 3.0000
Shares Out Decreasing? 1.2000 Market Cap.> 1.5 Billion? 0.2000
Profit Margin > 7.5%? 1.1413
Income Tests:
Dividend Yield > 2.0%? 3.0000 EPS Annual Growth > 10%? 3.0000
Enterprise Value/Revenue: 0.9800 EPS 5-yr Growth > 20%? 0.8220
Enterprise Value/EBITDA: 1.3000 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? 1.5200 Collection < 45 days? 0.6225
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 3.0000 Borrowing Int. Rate< 6%? 1.3681
Stock Performance Tests:
Volatility > 25%? 2.6558 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 1.9360 % Held by Institut. < 50? 0.5128
50 Da MA > 200 Da MA? 0.0420 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 0.1267 Short Ratio > 5? 0.5000
Price/Book Value < 3? -1.1300 Short % of Float > 20? 0.1400
Return on Assets > 17%? 0.3359 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 3.0000 Positive Free Cash Flow? 0.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: -3.0000
Cash Flow / Assets >.10? -0.0860
CE Celanese Corporation Overall Zenith Index: 1.2764
Financial Statements |
Income Statement:
Balance Sheet:
Cash Flow Statement:
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Celanese Corporation:
Symbol? CE
Total Months Available: 84
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
52.92 38.36 58.68 37.04 50.00 29.43
RANGE = 58.68 TO 29.43 Close = 48.80
CHANNEL = 50.00 TO 38.36 Degree = 4
Volatility = 23.85% Index = 9
Intraday Chart |
2 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The "ultimate systems" are inconclusive, giving no clear confirmed signals.
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | - 1 |
| Ratios | - 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | - 1 |
| Projected Earnings | - 1 |
| Research Reports | 0 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | + 1 |
| Right Time Study | - 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | 0 |
| Total | + 5 |
Place 625 shares of Celanese Corporation (CE) on the Active List.
