CE Stock – What Investors Should Know About Celanese Corp.
Celanese Corp. (CE stock ticker) is a global chemical and specialty materials provider that makes polymers for use in a variety of different commercial applications. The company leverages extensive customer engagement to structure projects that are aligned with key corporate competencies. This allows the company to address critical customer needs and ensure success. Engineered Materials development and growth are driven by the commercialization of new projects in the company’s pipeline business model.Celanese Corp Business Segments
- Engineered Materials – This segment develops, produces, and supplies a range of specialty polymers for automotive and medical applications, as well as industrial products and consumer electronics. It includes the engineered materials business, food ingredients business, and certain strategic affiliates.
- Acetate Tow – This segment is a global producer and supplier of acetate tow and acetate flake. It serves consumer-driven applications used in filter products applications.
- Acetyl Chain – This segment includes the integrated chain of intermediate chemistry, emulsion polymers, and ethylene vinyl acetate (“EVA”) polymers businesses. The segment focuses on solutions based on similar products, production processes, classes of customers, and selling and distribution practices.
- Mobility and Materials (M&M) – Its products include polyoxymethylene, ultra-high molecular weight polyethylene, polybutylene terephthalate, and long-fiber reinforced thermoplastics.
- Other Activities – This segment consists of corporate center costs, including administrative activities such as finance, information technology, and human resource functions, interest income, and expenses associated with financing activities.
CE Stock: Annual Reports – Financials – SEC Filings
Celanese Corp is incorporated in the state of Delaware. Celanese Corp is primarily in the business of plastic material, synth resin/rubber, and cellulose (no glass). For financial reporting, their fiscal year ends on December 31st. This page includes all SEC registration details as well as a list of all documents (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports) filed by Celanese Corp.
Celanese is one of the world’s largest producers of acetyl chain chemicals. These polymers are used in a variety of end markets such as coatings and adhesives. In addition, the company manufactures specialty polymers for the automotive, medical, and consumer markets, as well as cellulose derivatives used in cigarette filters.
CE Stock Dividend
The board of directors of Celanese Corporation (CE Stock) announced that the dividend on November 14th will be increased to $0.70. This is an increase over the previous year’s payment of $0.68 for the same period. This raises the annual payment to 2.9% of the stock price, which is higher than the average for the industry.
The company has been paying a dividend for a long time, and it has been fairly consistent. As a result, investors can remain optimistic about the future dividend potential. Since 2012, the dividend has increased from $0.24 to $2.72 per year. This means that it has increased its distributions at a rate of 27% per year during that time. A dividend stock with rapidly growing dividends over a long period of time is a very valuable feature.
CE Stock Forecast
- The 22 analysts offering 12-month price forecasts – for Celanese Corp have a median target of 114.50, with a high estimate of 165.00 and a low estimate of 83.00. The median estimate represents a +9.60% increase from the last price of 104.47. (Source: money.cnn.com)
- Based on 17 Wall Street analysts offering 12-month price targets for Celanese in the last 3 months. The average price target is $116.29 with a high forecast of $165.00 and a low forecast of $83.00. The average price target represents an 11.13% change from the last price of $104.64. (Source: tipranks.com)
- Analysts at Zacks Research reduced their FY2022 earnings per share (EPS) estimates for Celanese in a report released on Wednesday, November 16th. Zacks Research analyst A. Barman now forecasts that the basic materials company will earn $15.98 per share for the year, down from their prior forecast of $18.08. The consensus estimate for Celanese’s current full-year earnings is $16.08 per share. (Source: zacks.com)
Is CE Stock a Buy?
Wells Fargo & Company’s price target for Celanese has been reduced from $180.00 to $130.00, according to a report released on Tuesday, September 27th. Additionally, the research firm that Wells Fargo uses for its analysis also rated it as overweight. In a research report published on Wednesday, July 13th, and July 13th, Royal Bank of Canada downgraded Celanese from a “outperform” rating to a “sector perform” rating and reduced their price target for the stock from $200.00 to $116.00. Furthermore, the stock’s price target has been reduced. This move was made in conjunction with lowering their previously stated price target for the stock. Furthermore, the stock’s price target was reduced to reflect the new market conditions. Baird reduced their price target on Celanese to $180.00 in a research report published on Tuesday, August 9th, 2022.
Other Banks weigh in on CE Stock Price Targets
- Deutsche Bank – Celanese’s price target was lowered to $105 from $110 at Deutsche Bank. Analyst David Begleiter lowered the firm’s price target on Celanese to $105 from $110 and keeps a Buy rating on the shares following last week’s Q3 results. He says $13-$14 of earnings per share is achievable in 2023. (Source: deutschebank.com)
- BMO Capital – Celanese Corp’s (CE stock) price target was lowered to $130 from $150 at BMO Capital. Analyst John McNulty lowered the firm’s price target on Celanese to $130 from $150 after its Q3 earnings miss and below-consensus guidance. However, McNulty keeps an Outperform rating on the shares. The company faces headwinds around macro conditions and leverage. But, it also has the right management team to create opportunities and value in a global business platform. Moreover, the analyst tells investors in a research note that he expects its Mobility & Materials acquisition to see greater profitability. (Source: bmocapital.com)
- Mizuho Financial Group – Celanese Corp’s (CE stock) price target was lowered to $108 from $116 at Mizuho. Analyst Kieran de Brun lowered the firm’s price target on Celanese to $108 from $116. However, the analyst keeps a Neutral rating on the shares. The weaker demand outlook for Acetyls is still pressuring pricing and compressing margins, de Brun tells investors in a research note. (Source: mizuho.com)
- Piper Sandler – According to a report from The Fly, the equity research analysts at Piper Sandler decreased their price target for CE Stock from $120.00 to $100.00. This decision was made due to recent events in the market. However, if Piper Sandler’s target price is reached, there is the potential for a 10.82% increase in the stock price compared to where it is currently trading. This represents a significant potential upside potential for investors. (Source: thefly.com)
CE Stock News
Third quarter 2022 earnings: Revenues exceed analysts’ expectations while EPS lags behind (November 2022)
Third quarter 2022 results:
- EPS: US$1.77 (down from US$4.70 in 3Q 2021).
- Revenue: US$2.30b (up 1.5% from 3Q 2021). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 56%. Revenue is expected to decline by 2.3% p.a. on average during the next 3 years, while revenues in the Chemicals industry in the US are expected to grow by 2.1%.
- Net income: US$192.0m (down 63% from 3Q 2021).
- Profit margin: 8.3% (down from 23% in 3Q 2021). The decrease in margin was driven by higher expenses.
Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging behind earnings.
Celanese Corporation (CE Stock) completed the acquisition of an unknown majority stake in the Mobility and Materials business of DuPont de Nemours, Inc. (November 2022)
Celanese Corporation entered into an agreement to acquire an unknown majority stake in the Mobility and Materials business of DuPont de Nemours, Inc. The value listed was approximately $11 billion on February 17, 2022. According to the term sheet, Celanese Corporation shall pay in cash, subject to certain adjustments. The deal includes the Engineering Polymers business line. Also, select product lines within the Performance Resins and Advanced Solutions business lines of DuPont. The acquisition is expected to be fully financed with cash on hand and committed debt financing at the time of closing.
The 3M Company (MMM Stock) is a global manufacturer, technology innovator, and marketer of a wide range of industrial, safety, and consumer products. 3M is a multinational conglomerate that was founded in 1902 as Minnesota Mining and Manufacturing. The company was founded by Henry S. Bryan, Hermon W. Cable, John Dwan, William A. McGonagle, and J. Danley Budd in 1902 and is headquartered in St. Paul, MN. Approximately 60% of the company’s revenue comes from outside the United States. The safety and industrial segments account for the majority of net sales. Many of the company’s 55,000-plus products are relevant to and concern a wide range of consumers and end markets. 3M is well-known for its research and development laboratory. It operates through the following segments: Safety and Industrial, Transportation and Electronics, Health Care, Consumer, and Corporate and Unallocated.
