|Bid||103.99 x 1200|
|Ask||104.03 x 1200|
|Day's Range||103.49 - 105.42|
|52 Week Range||96.19 - 121.95|
|PE Ratio (TTM)||7.00|
|Earnings Date||Oct 30, 2018|
|Forward Dividend & Yield||4.00 (3.80%)|
|1y Target Est||117.63|
Celanese (CE), a specialty chemical company, has outperformed its selected peers so far in 2018. YTD (year-to-date), Celanese has risen ~6%. Its peer Eastman Chemical (EMN) has risen 5% YTD. LyondellBasell (LYB) and Westlake Chemical (WLK) have fallen 7.4% and 21.2%, respectively, YTD. However, CE has underperformed the S&P 500 (SPY), which has gained 8.6% in the same period.
The latest short interest report on August 31 indicates that Celanese’s (CE) short interest is at the lowest point since the beginning of 2018. According to the latest report, CE’s short interest as a percentage of its outstanding shares is 1.44%.
Over the past six years, data indicate that Celanese (CE) has been generating positive free cash flows. In that period, CE has generated an average free cash flow of $362 million. At the end of the second quarter of 2018, it generated a free cash flow of $562 million.
At the end of the second quarter of 2018, Celanese (CE) reported debt of ~$.3.6 billion. Its debt remained stable at ~$3 billion between 2012 and 2016. However, at the end of 2017, Celanese raised 300 million euros to fund its qualified US pension plans. As a result, CE’s debt is at its highest level in more than six years.
The bearish case for chemical company LyondellBasell Industries NV (NYSE: LYB ) rests on expectations for declining financial performance in 2019, according to JPMorgan. The Analyst JPMorgan's Jeffrey ...
Shares of LyondellBasell Industries NV dropped 2.2% in premarket trade Wednesday, after J.P. Morgan turned bearish on the chemical company, citing the recent sharp rise in feedstock costs. Analyst Jeffrey Zekauskas cut his rating to underweight, after being at neutral since June 2016. He also slashed his stock price target to $95, which is 7% below Tuesday's closing price, from $110. Zekauskas said his new bearish stance is driven primarily by the big jump in ethane prices, which has increased 50% since August. "The supply/demand characteristics of ethane are much tighter than had been understood previously," Zekauskas wrote in a note to clients. "We believe that the raw material volatility undermines confidence in Lyondell's business forecasts for 2019." The stock has lost 8.2% over the past three months, while the SPDR Materials Select Sector ETF has tacked on 2.0% and the S&P 500 has gained 5.1%.
On September 12, Dow Chemical, part of DowDuPont (DWDP), announced debottlenecking and capacity expansion plans in its silicones business. The company intends to meet the growing demand in end markets like electrical, consumer goods, performance building, and home and personal care. However, Dow Chemical didn’t specify the financial aspects of the investment.
The circular steam project will allow LyondellBasell (LYB) and Covestro to realize annual CO2 reduction and drive yearly energy savings.
On September 4, LyondellBasell (LYB) and joint venture partner Covestro announced they had initiated a new project at their site in Maasvlakte-Rotterdam in the Netherlands. The new initiative is expected to reduce annual levels of carboxylic acid and reduce carbon-dioxide emissions by 140,000 metric tons. This project is a step towards the Netherlands’ target to reduce carbon-dioxide emissions by 49% by 2030.
The new Dow will include three verticals: consumer care, infrastructure, and packaging. DWDP expects form ten to be effective in Q1 2019, which is close to the separation date. Jim Fitterling, CEO of the new Dow, said, “The Form 10 is a significant step towards the creation of the new Dow – the world’s leading materials science company.
HOUSTON, Sept. 11, 2018 /PRNewswire/ -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, for the 19th consecutive year engaged thousands of its employees, along with their family members and friends on Global Care Day. Each Global Care Day service project assists an organization that supports one of our philanthropic focus areas: education, environment, health and first responders. "A strong commitment to our communities drives our philanthropy strategy to address challenges at a local level," said Bob Patel, CEO of LyondellBasell.
Olin Corporation (OLN) turned out to be one of the best performers among the specialty segments in August. It gained ~4.1% and outperformed the broader market S&P 500 (SPY), which gained 3% that month. Among Olin’s peers, LyondellBasell (LYB) rose 1.8%, while Celanese (CE) and Eastman Chemical (EMN) fell ~1.15 and ~6.4%, respectively.
On August 30, 2018, a press release from Eastman Chemical said that Tritan will be used by Apollo Brands, a part of Apollo Hospitals Enterprise. The Indian government’s BPA ban related to food contact products has resulted in Apollo selecting Eastman’s Tritan, which is BPA-free. Eastman Tritan has FDA approval and also holds many global certifications.
The FTSE4Good Index measures the performance of companies that demonstrate strong environmental, social, and governance (or ESG) practices. On August 25, DowDuPont (DWDP) announced that it had been named as a part of the FTSE4Good Index Series. This index acts as a benchmark for sustainable investment and helps investors to identify companies that are environmentally and socially sustainable.
On August 30, LyondellBasell (LYB) announced that Shandong Chambroad Petrochemicals selected its Hostalen Advanced Cascade Process technology. This technology will be used for 350KTA high-density polyethylene, which will be built in Binzhou City in the Shandong province. However, LyondellBasell didn’t disclose the financial aspects of the deal.
Have you been keeping an eye on LyondellBasell Industries NV’s (NYSE:LYB) upcoming dividend of US$1.00 per share payable on the 12 September 2018? Then you only have 2 days leftRead More...
As of August 28, LyondellBasell’s one-year forward PE ratio stands at 10.0x. In comparison, Eastman Chemical (EMN) has a one-year forward PE ratio of 10.9x. The forward PE ratio is a measure that investors can use to compare two or more companies operating in the same industry to tell which company is overvalued and which is undervalued. The PE ratio considers the companies’ future estimated earnings when calculating the valuations.
As of August 28, LyondellBasell has gained 4.2% in 2018. Westlake Chemical (WLK) and Olin (OLN) have fallen 8% and 11.2%, respectively, while Eastman Chemical (EMN) has gained 6.7%. However, LyondellBasell didn’t outperform the broader market S&P 500 (SPY), which has gained ~8.4% during the same period.
The latest short interest report on August 15 indicates that LyondellBasell’s (LYB) short interest is at the lowest point since the beginning of 2018. According to the latest report, LyondellBasell’s short interest as a percentage of its outstanding shares stood at 1.63%. The declining trend in LyondellBasell’s short-interest indicates a decline in the negative sentiment towards the stock. The decline in the short interest could be attributed to the company’s better-than-expected quarterly earnings. The completion of the A. Schulman (SHLM) acquisition and the possible acquisition of a stake in Baskem reduced the negative sentiment towards the stock.
The number of analysts tracking LyondellBasell (LYB) fell to 22 from 23 in the past six months. Analysts’ consensus on LyondellBasell indicates a target price of $119.75, which implies a return potential of ~4.2% over the closing price of $114.97 as of August 28.
LyondellBasell (LYB) declared its third-quarter dividend in a press release on August 22. To be part of the dividend, investors should hold LyondellBasell shares at the end of September 5 in the company’s records. LyondellBasell is expected to pay the dividend on September 12.
As of August 27, LyondellBasell’s (LYB) dividend yield was at 3.45%. In comparison, Eastman Chemical (EMN), Huntsman Chemical (HUN), and Celanese (CE) have dividend yields of 2.24%, 1.98%, and 1.76%, respectively. LyondellBasell’s dividend yield is the best among the selected peers.