Celanese stock touches 52-week low at $99.86 amid market shifts

In a market that continues to challenge investors, Celanese Corporation (NYSE:CE) stock has marked a new 52-week low, dipping to $99.86. This latest price movement reflects a broader trend of volatility within the chemicals sector, as companies navigate through a complex landscape of supply chain disruptions and fluctuating demand. Despite the current low, Celanese has experienced a modest uptick over the past year, with a 1-year change showing a 2.89% increase. This suggests that while the stock has faced recent pressures, its overall performance over the year has managed to stay in positive territory, hinting at underlying resilience in the face of market headwinds.

In other recent news, chemical manufacturer Celanese Corporation has reported a significant 87% drop in third-quarter net earnings, amounting to $120 million. This decline in profits has prompted the company to slash its quarterly dividend by approximately 95% as part of a broader strategy to reduce debt. The company also plans to save over $75 million through additional cost-cutting measures by the end of 2025, which includes temporary shutdowns of production facilities across all regions.

Celanese's Q3 earnings per share were reported at $2.44, falling short of the consensus estimate of $2.85. This disappointing outcome was attributed to persistent demand weakness in key markets such as paints, coatings, and construction, as well as rapid downturns in Western Hemisphere automotive and industrial segments.

Furthermore, the company has revised its fourth-quarter adjusted profit guidance to $1.25 per share, which is significantly below the average analysts' expectations of $2.93 per share as compiled by LSEG. This downward revision reflects the anticipation of worsening demand conditions. These are recent developments within the company and the industry.

InvestingPro Insights

Despite Celanese Corporation (CE) hitting a new 52-week low, recent data from InvestingPro reveals some intriguing aspects of the company's financial health. The stock currently trades at a P/E ratio of 7.02, significantly lower than its adjusted P/E of 10.98 for the last twelve months as of Q3 2024. This low valuation is further emphasized by an InvestingPro Tip indicating that CE is trading at a low P/E ratio relative to its near-term earnings growth.

Another InvestingPro Tip highlights that Celanese has maintained dividend payments for 20 consecutive years, demonstrating a commitment to shareholder returns even in challenging market conditions. This is particularly noteworthy given the current dividend yield of 2.27%, which may attract income-focused investors.

For those interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide valuable insights into Celanese's market position and future prospects. These tips, along with real-time financial metrics, can help investors make more informed decisions in the current volatile market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.