Celanese Gross Profit vs. Operating Margin

CE Stock  USD 68.58  0.27  0.39%   
Based on the measurements of profitability obtained from Celanese's financial statements, Celanese may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Celanese's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2003-12-31
Previous Quarter
609 M
Current Value
622 M
Quarterly Volatility
152.4 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Celanese's Days Of Sales Outstanding is projected to increase slightly based on the last few years of reporting. At present, Celanese's Net Income is projected to increase significantly based on the last few years of reporting. The current year's Net Income Applicable To Common Shares is expected to grow to about 2.3 B, whereas Income Before Tax is forecasted to decline to about 892 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.2379
Way Down
Slightly volatile
For Celanese profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Celanese to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Celanese utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Celanese's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Celanese over time as well as its relative position and ranking within its peers.
  

Celanese's Revenue Breakdown by Earning Segment

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For information on how to trade Celanese Stock refer to our How to Trade Celanese Stock guide.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Celanese. If investors know Celanese will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Celanese listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.88)
Dividend Share
2.8
Earnings Share
10.04
Revenue Per Share
95.989
Quarterly Revenue Growth
(0.03)
The market value of Celanese is measured differently than its book value, which is the value of Celanese that is recorded on the company's balance sheet. Investors also form their own opinion of Celanese's value that differs from its market value or its book value, called intrinsic value, which is Celanese's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Celanese's market value can be influenced by many factors that don't directly affect Celanese's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Celanese's value and its price as these two are different measures arrived at by different means. Investors typically determine if Celanese is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Celanese's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Celanese Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Celanese's current stock value. Our valuation model uses many indicators to compare Celanese value to that of its competitors to determine the firm's financial worth.
Celanese is rated third in gross profit category among its peers. It is rated fourth in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Celanese is about  20,659,722,222 . At present, Celanese's Gross Profit is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Celanese by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Celanese Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Celanese

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.38 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Celanese

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.12 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Celanese Operating Margin Comparison

Celanese is currently under evaluation in operating margin category among its peers.

Celanese Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Celanese, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Celanese will eventually generate negative long term returns. The profitability progress is the general direction of Celanese's change in net profit over the period of time. It can combine multiple indicators of Celanese, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-744 M-706.8 M
Operating Income1.7 B1.8 B
Income Before Tax1.2 B892 M
Total Other Income Expense Net-504 M-478.8 M
Net IncomeB2.1 B
Income Tax Expense-790 M-750.5 M
Net Income Applicable To Common Shares2.2 B2.3 B
Net Income From Continuing OpsB1.2 B
Non Operating Income Net Other495.6 M433.4 M
Interest Income60 M87.9 M
Net Interest Income-657 M-624.1 M
Change To Netincome-753.3 M-715.6 M
Net Income Per Share 18.01  18.91 
Income Quality 0.96  1.43 
Net Income Per E B T 1.66  1.74 

Celanese Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Celanese. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Celanese position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Celanese's important profitability drivers and their relationship over time.

Use Celanese in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Celanese position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Celanese will appreciate offsetting losses from the drop in the long position's value.

Celanese Pair Trading

Celanese Pair Trading Analysis

The ability to find closely correlated positions to Celanese could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Celanese when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Celanese - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Celanese to buy it.
The correlation of Celanese is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Celanese moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Celanese moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Celanese can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Celanese position

In addition to having Celanese in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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For information on how to trade Celanese Stock refer to our How to Trade Celanese Stock guide.
You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
To fully project Celanese's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Celanese at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Celanese's income statement, its balance sheet, and the statement of cash flows.
Potential Celanese investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Celanese investors may work on each financial statement separately, they are all related. The changes in Celanese's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Celanese's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.