DALLAS - Celanese Corporation (NYSE: NYSE:CE), a global chemical and specialty materials company, has announced a quarterly cash dividend of $0.70 per share on its common stock. The dividend is scheduled for payment on November 13 to shareholders who are on record as of October 30, 2024.
The company, known for producing specialty material solutions across a wide range of industries and applications, emphasizes its commitment to sustainability and responsible management of its products throughout their lifecycle. Celanese continues to expand its portfolio of sustainable products in response to growing consumer and societal demands.
Celanese, a Fortune 500 entity, operates on a global scale with approximately 12,400 employees. The company reported net sales of $10.9 billion in 2023, reflecting its significant position in the chemical and specialty materials industry.
This dividend declaration follows Celanese's pattern of providing returns to its shareholders and demonstrates the company's ongoing financial performance and confidence in its business operations.
The information in this article is based on a press release statement from Celanese Corporation.
In other recent news, KeyBanc Capital Markets has downgraded Celanese Corporation's stock rating to "Sector Weight" due to anticipated challenges in the second half of 2024 and 2025. The firm has adjusted its earnings estimates for Celanese below the consensus. Piper Sandler also shifted to a Neutral position from an Overweight rating for Celanese, citing persistent challenges in China and the EU markets. Deutsche Bank (ETR:DBKGn) and BMO Capital Markets adjusted their price target for Celanese, reflecting concerns over a difficult macroeconomic environment and operational challenges.
In addition to these adjustments, Celanese announced the election of Bruce Chinn, former CEO of Chevron (NYSE:CVX) Phillips Chemical Company, to its Board of Directors. The addition of Chinn is expected to enhance the board's expertise. These are the recent developments that investors should be aware of.
KeyBanc's downgrade reflects the firm's anticipation of a turbulent period for Celanese, with a slowdown in the automotive market and a significant decline in nylon prices. On the other hand, Piper Sandler's adjustment is primarily due to persistent challenges in China and the EU, and slower than expected electric vehicle build rates. Despite these challenges, Celanese management remains optimistic, providing a preliminary outlook for 2025 that suggests an earnings per share (EPS) of over $13.50.
InvestingPro Insights
Celanese Corporation's recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company currently offers a dividend yield of 2.07%, with its last ex-dividend date on July 30, 2024. More impressively, an InvestingPro Tip reveals that Celanese has raised its dividend for 14 consecutive years, underscoring its commitment to increasing shareholder value over time.
The company's financial health appears robust, with a market capitalization of $14.8 billion and a price-to-earnings (P/E) ratio of 7.63. This relatively low P/E ratio, coupled with another InvestingPro Tip indicating that Celanese is trading at a low P/E ratio relative to near-term earnings growth, suggests the stock may be undervalued.
Celanese's revenue for the last twelve months as of Q2 2024 stood at $10.55 billion, closely aligning with the $10.9 billion reported for 2023 in the article. The company maintains a healthy gross profit margin of 24.02% and an operating income margin of 10.84%, reflecting its operational efficiency in the competitive chemical and specialty materials industry.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics to further evaluate Celanese's investment potential. In fact, there are 5 more InvestingPro Tips available for Celanese, providing a deeper understanding of the company's financial position and market performance.
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