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Jul 22, 2023Liked by Tiago Dias

Hi Tiago, thank you for your excellent work!

About Celanese, I am worried with its financial health and divided about whether the potential benefit outweighs the risk. In particular, I am worried that the debt to equity ratio of the company is nearly 240%!! A total shareholder equity of $6.1b and a total debt of $14.6b.

I am also looking to find a company in this sector and was very interesting to read your report, which made me research a little more. I am still gonna look a little deeper, but so far, I think them oat is limited, they have a fairly low 2.3% dividend (for my standards). On the other hand, I think the decision to invest on this one needs to be fast. Earnings, revenue and EPS are expected to grow from here onwards, but the growth potential (based on earning and revenue) is below average.

In sum, I think, at the moment I think there might be better options and other priorities to invests with better value and growth potential combined. I believe Celanese may grow from here and I don't think the risk is that big, as numbers indicate they are able to cover liabilities pretty well and management seems competent, but it just not fitting the sweet spot either for a temporary holding (shorter-term) or convincing enough to become one of the portfolios high conviction buy and hold assets.

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