CE

Celanese Corp - Ordinary Shares - Series A

Industrial/Transportation


Presented:03/08/2024
Price:$155.49
Cap:$16.93B
Current Price:$133.77
Cap:$14.62B

Presented

Date03/08/2024
Price$155.49
Market Cap$16.93B
Ent Value$29.77B
P/E Ratio8.68x
Book Value$65.11
Div Yield1.8%
Shares O/S108.91M
Ave Daily Vol725,866
Short IntN/A

Current

Price$133.77
Market Cap$14.62B
Celanese Corp. engages in the provision of technology and specialty materials businesses. It operates through the following segments: Engineered Materials, Acetate Tow, Acetyl Chain and Other Activities. The Engineered Materials segment includes the engineered materials business, food ingredients business and certain strategic affiliates. The Acetate Tow segment serves consumer-driven applications and is a global producer and supplier of acetate tow and acetate flake used in filter products applications. The Acetyl Chain segment includes the integrated chain of intermediate chemistry, emulsion polymers and ethylene vinyl acetate (EVA) polymers businesses, based on similar products, production processes, classes of customers and selling and distribution practices as well as economic similarities over a normal business cycle. The Other Activities 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. The company was founded by Camille Dreyfus and Henri Dreyfus in 1918 and is headquartered in Irving, TX.

Publicly traded companies mentioned herein: Celanese Corporation (CE), DuPont de Nemours Inc (DD)

Highlights 

The presenter is short shares of Celanese (CE), as there are significant concerns regarding the acquisition of the DuPont asset, which took place at the peak of the cycle. The hefty $11B price tag for the DuPont asset, particularly in the nylon business, poses considerable risks, and it's doubtful whether the expected returns will materialize. Despite there being some positives like a potential recovery in China and favorable opinions on the management led by Lori Ryerkerk, the presenter believes shares are overpriced. 

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Idea Discussion

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