Celanese Corporation is a 100-year old materials company based out of Irving, Texas. It is part of the Fortune 500 list and is the world’s leading producer of Acetyl. Acetyl and its derivatives are used in multiple applications including adhesives and coatings. Industrial, infrastructure, and materials stocks have been receiving increased attention lately because of anticipation of higher spending on infrastructure. There is also an expectation that economic activity is gaining steam as the vaccination drives across the world begin to counter the pandemic. It may be a good idea to look at Celanese Corporation, one of the top candidates for materials stocks to invest in.
Celanese Financials Are Back To Pre-COVID Levels
Celanese Corporation reported its fourth-quarter 2020 earnings in January 2021. Revenue was up from $1.43 billion in the fourth quarter of 2019 to $1.59 billion. Adjusted earnings per share were up from $1.99 in Q42019 to $2.09. The Engineered Materials, as well as Acetyl Chain segment revenues, were up while the Acetate Tow segment revenue was down on a year-on-year basis. Based on recent results, Celanese is among the best chemicals stocks to buy.
The company management, in its earnings release, commented that “Despite broad demand recovery at year end, 2020 Engineered Materials volume in the automotive, electronics, consumer, and medical end markets remained below prior year levels.” The management further said, “By delivering adjusted EBIT approaching $600 million during 2020, a threshold that has only been surpassed three times in the last ten years, the Acetyl Chain demonstrated the resiliency of its business model and the unparalleled optionality it exercises.”
Celanese Corporation’s stock closed at around $135 on 19th February 2021. It was trading at a 2.01% dividend yield at the time. The price isn’t too far from the 52-week high of $140. Celanese had gained 30% over the preceding 1-year period and was up 121% on a 5-year basis. The stock has also doubled since the March 2020 market crash.