CluenexCelanese CE
Celanese scores weak on business quality (2.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Celanese does
Celanese manufactures specialty materials and chemical intermediates, selling engineered polymers and acetyl chains to industrial manufacturers worldwide. The company is preparing for its third quarter earnings conference call in November 2026 to update the market on operational execution.
- What it does best
Celanese holds a notable free cash flow margin of 54 percent, placing it in the top decile of its sector. This cash generation stems from specialized chemical processing infrastructure that requires heavy upfront capital, making replication difficult for new market entrants.
- The main risk
An interest coverage ratio of 1.1x leaves the company highly vulnerable to earnings shocks, as operating income barely covers debt servicing costs on its $12.6 billion total debt load.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 8.4 percent while net income is negative $1.2 billion, dragging return on equity down to negative 28.8 percent. Scale advantages are currently failing to offset rising cost pressures.
The moat rests on process technology and customer switching costs in engineered materials, landing it in the 35th percentile for gross margins. Rival firms can gradually chip away at this edge because margins trail peers like NEU at 31.5 percent.
Revenue is contracting with a growth rate of -7.1 percent over the latest period, down from $10.9 billion in 2023. This top-line shrinkage highlights ongoing demand challenges across its core segments.
With total debt of $12.6 billion and interest coverage at 1.1x, the balance sheet is strained. Free cash flow of $708 million provides some cover, but overall financial footing is softening rapidly.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
3 insiders bought $230K on the open market.
Our sealed record on CE
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Celanese scores weak on the Cluenex quality check (2.2 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 3 insiders bought $230K on the open market.
Nov 2, 2026, after the close.
See CE today
- Today's verdict on CE, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Celanese (CE)”, https://cluenex.com/stocks/ce/, data as of Oct 10, 2026.