EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
65.84 USD
+0.88 (+1.35%)
65.84 USD
0 (0%)
EMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. EMN scores excellent on profitability, but there are some minor concerns on its financial health. EMN is valued correctly, but it does not seem to be growing. EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMN had positive earnings in the past year.
EMN had a positive operating cash flow in the past year.
In the past 5 years EMN has always been profitable.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.67%, EMN is doing good in the industry, outperforming 78.05% of the companies in the same industry.
The Return On Equity of EMN (12.11%) is better than 82.93% of its industry peers.
With a decent Return On Invested Capital value of 7.41%, EMN is doing good in the industry, outperforming 73.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EMN is above the industry average of 6.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 12.11% | ||
| ROIC | 7.41% |
ROA(3y)5.82%
ROA(5y)5.19%
ROE(3y)15.81%
ROE(5y)14.08%
ROIC(3y)8.36%
ROIC(5y)8.64%
1.3 Margins
EMN has a Profit Margin of 7.75%. This is in the better half of the industry: EMN outperforms 75.61% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
The Operating Margin of EMN (12.92%) is better than 69.51% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
EMN has a Gross Margin (22.85%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EMN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.92% | ||
| PM (TTM) | 7.75% | ||
| GM | 22.85% |
OM growth 3Y-7.23%
OM growth 5Y1.24%
PM growth 3Y5.65%
PM growth 5Y3.34%
GM growth 3Y0.75%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
EMN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EMN has less shares outstanding
The number of shares outstanding for EMN has been reduced compared to 5 years ago.
Compared to 1 year ago, EMN has an improved debt to assets ratio.
2.2 Solvency
EMN has an Altman-Z score of 2.42. This is not the best score and indicates that EMN is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, EMN is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
EMN has a debt to FCF ratio of 12.85. This is a negative value and a sign of low solvency as EMN would need 12.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.85, EMN is in line with its industry, outperforming 57.32% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
EMN's Debt to Equity ratio of 0.88 is in line compared to the rest of the industry. EMN outperforms 40.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.91
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.76 indicates that EMN should not have too much problems paying its short term obligations.
The Current ratio of EMN (1.76) is comparable to the rest of the industry.
EMN has a Quick Ratio of 1.76. This is a bad value and indicates that EMN is not financially healthy enough and could expect problems in meeting its short term obligations.
EMN has a worse Quick ratio (0.86) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
EMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.05%.
EMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.08% yearly.
EMN shows a decrease in Revenue. In the last year, the revenue decreased by -3.42%.
The Revenue has been growing slightly by 0.23% on average over the past years.
EPS 1Y (TTM)-11.05%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-49.56%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-10.63%
3.2 Future
Based on estimates for the next years, EMN will show a small growth in Earnings Per Share. The EPS will grow by 2.78% on average per year.
The Revenue is expected to decrease by -0.52% on average over the next years.
EPS Next Y-29.3%
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
EPS Next 5Y2.78%
Revenue Next Year-5.89%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y-0.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.10, the valuation of EMN can be described as reasonable.
Based on the Price/Earnings ratio, EMN is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
EMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.76.
The Price/Forward Earnings ratio is 10.27, which indicates a very decent valuation of EMN.
Based on the Price/Forward Earnings ratio, EMN is valued cheaper than 82.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued a bit cheaper than 78.05% of the companies in the same industry.
EMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EMN is cheaper than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
EMN has a very decent profitability rating, which may justify a higher PE ratio.
EMN's earnings are expected to decrease with -2.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.87
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.54%, which is a nice return.
Compared to an average industry Dividend Yield of 3.98, EMN pays a better dividend. On top of this EMN pays more dividend than 87.80% of the companies listed in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of EMN has a limited annual growth rate of 5.58%.
EMN has paid a dividend for at least 10 years, which is a reliable track record.
EMN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.58%
Div Incr Years15
Div Non Decr Years30
5.3 Sustainability
EMN pays out 54.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
EMN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.51%
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
65.84
+0.88 (+1.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.85%
Inst Owner Change-3.38%
Ins Owners0.7%
Ins Owner Change1.92%
Market Cap7.51B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target74.18 (12.67%)
Short Float %3.64%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP54.51%
Div Incr Years15
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.68%
Min EPS beat(2)-8.32%
Max EPS beat(2)-3.04%
EPS beat(4)1
Avg EPS beat(4)1.72%
Min EPS beat(4)-8.32%
Max EPS beat(4)18.25%
EPS beat(8)5
Avg EPS beat(8)3.53%
EPS beat(12)8
Avg EPS beat(12)2.53%
EPS beat(16)10
Avg EPS beat(16)1.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-1.63%
Revenue beat(8)1
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-2.5%
Revenue beat(16)4
Avg Revenue beat(16)-0.44%
PT rev (1m)-2.45%
PT rev (3m)-6.97%
EPS NQ rev (1m)-5.74%
EPS NQ rev (3m)-37.06%
EPS NY rev (1m)-4.23%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-5.96%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.83 | ||
| P/FCF | 19.01 | ||
| P/OCF | 7.45 | ||
| P/B | 1.3 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)6.52
EY9.9%
EPS(NY)6.41
Fwd EY9.74%
FCF(TTM)3.46
FCFY5.26%
OCF(TTM)8.84
OCFY13.42%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.87
Graham Number86.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 12.11% | ||
| ROCE | 9.09% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.7% | ||
| ROICexgc | 12.22% | ||
| OM | 12.92% | ||
| PM (TTM) | 7.75% | ||
| GM | 22.85% | ||
| FCFM | 4.38% |
ROA(3y)5.82%
ROA(5y)5.19%
ROE(3y)15.81%
ROE(5y)14.08%
ROIC(3y)8.36%
ROIC(5y)8.64%
ROICexc(3y)8.83%
ROICexc(5y)9.06%
ROICexgc(3y)15.26%
ROICexgc(5y)15.76%
ROCE(3y)10.04%
ROCE(5y)10.38%
ROICexgc growth 3Y-10.23%
ROICexgc growth 5Y3.54%
ROICexc growth 3Y-9.52%
ROICexc growth 5Y5.53%
OM growth 3Y-7.23%
OM growth 5Y1.24%
PM growth 3Y5.65%
PM growth 5Y3.34%
GM growth 3Y0.75%
GM growth 5Y0.26%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 119.96% | ||
| Cap/Sales | 6.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.11% | ||
| Profit Quality | 56.51% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.42 |
F-Score5
WACC8.1%
ROIC/WACC0.91
Cap/Depr(3y)138.26%
Cap/Depr(5y)116.93%
Cap/Sales(3y)7.09%
Cap/Sales(5y)6.22%
Profit Quality(3y)60.45%
Profit Quality(5y)105.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.05%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-49.56%
EPS Next Y-29.3%
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
EPS Next 5Y2.78%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-10.63%
Revenue Next Year-5.89%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y-0.52%
EBIT growth 1Y2.73%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year20.62%
EBIT Next 3Y11.96%
EBIT Next 5Y11.73%
FCF growth 1Y-24.04%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y-26.9%
OCF growth 3Y-7.36%
OCF growth 5Y-3.07%
EASTMAN CHEMICAL CO / EMN FAQ
Can you provide the ChartMill fundamental rating for EASTMAN CHEMICAL CO?
ChartMill assigns a fundamental rating of 5 / 10 to EMN.
What is the valuation status of EASTMAN CHEMICAL CO (EMN) stock?
ChartMill assigns a valuation rating of 6 / 10 to EASTMAN CHEMICAL CO (EMN). This can be considered as Fairly Valued.
What is the profitability of EMN stock?
EASTMAN CHEMICAL CO (EMN) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for EMN stock?
The Price/Earnings (PE) ratio for EASTMAN CHEMICAL CO (EMN) is 10.1 and the Price/Book (PB) ratio is 1.3.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.