CGC Stock – Here’s How Much a $1000 Investment in Celanese Made 10 Years Ago Would Be Worth Today
How much a stock’s price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you’d invested in Celanese (CE) ten years ago? It may not have been easy to hold on to CE for all that time, but if you did, how much would your investment be worth today?
Celanese’s Business In-Depth
With that in mind, let’s take a look at Celanese’s main business drivers.
Texas-based Celanese Corporation is a global hybrid chemical company. The company produces chemical substances and materials. About 95% of Celanese’s products rank either first or second in their respective markets, based on market shares.
Celanese makes high performance engineered polymers that are used in a range of high-value applications. It also produces acetyl products for most major industries.
The company’s vast product portfolio caters a number of end-use applications including automotive, construction, consumer and industrial adhesives, performance industrial, textiles, chemical additives, consumer and medical, energy storage, filtration, paints and coatings, paper and packaging and food and beverage. The company generated revenues of $5.7 billion in 2020.
The company’s operating segments are as follows:
Engineered Materials/EM (37% of 2020 sales): The segment develops, produces and supplies high performance technical polymers for application in automotive and electronics products and in other consumer and industrial applications. The primary products of Advanced Engineered Materials are Polyacetal products and ultra-high molecular weight polyethylene (GUR).
Acetate Tow (9%): The segment consists of Acetate Products businesses. The Acetate Products business primarily produces and supplies acetate tow and acetate flake, which are used in the production of filter products.
Acetyl Chain (54%): This segment includes the results of Celanese’s Industrial Specialties and Acetyl Intermediates. The Industrial Specialties business includes the Emulsions and AT Plastics businesses. The Emulsions business produces vinyl acetate/ethylene emulsions. AT Plastics offers a complete line of low-density polyethylene and specialty ethylene vinyl acetate resins and compounds.
The Acetyl Intermediates business produces and supplies acetyl products including acetic acid, vinyl acetate monomer (VAM), acetic anhydride and acetate esters. Acetic acid is a key intermediate chemical used in the production of VAM, purified terephthalic acid and acetic anhydride.
Other chemicals produced in this segment are organic solvents and intermediates for pharmaceutical, agricultural and chemical products.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Celanese ten years ago, you’re likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2011 would be worth $3,469.75, or a gain of 246.98%, as of May 10, 2021, and this return excludes dividends but includes price increases.
The S&P 500 rose 215.82% and the price of gold increased 16.02% over the same time frame in comparison.
Analysts are forecasting more upside for CE too.
Celanese’s adjusted earnings and sales for the first quarter of 2021 topped the respective Zacks Consensus Estimate. The company remains focused on executing its productivity programs that include the implementation of a number of cost reduction capital projects. Cost savings through productivity actions and operational improvement are likely to support the company’s bottom line in 2021. Acquisitions of SO.F.TER., Nilit and Omni Plastics are also expected to drive results in its Engineered Materials unit this year. Moreover, the company is poised to gain from expansion in emerging regions. The company’s efforts to lower debt also bode well. Moreover, Celanese remains committed to returning value to its shareholders leveraging strong cash flows. The company has also outperformed the industry it belongs to over the past year.
The stock is up 12.34% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2021. The consensus estimate has moved up as well.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.