EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
NYSE:EMN - New York Stock Exchange, Inc. - US2774321002 - Common Stock - Currency: USD
EMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. EMN has only an average score on both its financial health and profitability. EMN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Each year in the past 5 years EMN has been profitable.
EMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.88%, EMN belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
The Return On Equity of EMN (15.65%) is better than 82.93% of its industry peers.
EMN's Return On Invested Capital of 7.46% is fine compared to the rest of the industry. EMN outperforms 73.17% of its industry peers.
EMN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is above the industry average of 6.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROIC | 7.46% |
ROA(3y)5.68%
ROA(5y)4.95%
ROE(3y)15.6%
ROE(5y)13.49%
ROIC(3y)9.38%
ROIC(5y)8.16%
1.3 Margins
The Profit Margin of EMN (9.47%) is better than 81.71% of its industry peers.
EMN's Profit Margin has declined in the last couple of years.
EMN has a Operating Margin of 12.15%. This is in the better half of the industry: EMN outperforms 68.29% of its industry peers.
In the last couple of years the Operating Margin of EMN has declined.
With a Gross Margin value of 23.54%, EMN perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
In the last couple of years the Gross Margin of EMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% |
OM growth 3Y-0.89%
OM growth 5Y-6.24%
PM growth 3Y19.83%
PM growth 5Y-1.82%
GM growth 3Y-1.35%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EMN is still 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.
EMN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMN has a Altman-Z score of 2.57. This is in the better half of the industry: EMN outperforms 73.17% of its industry peers.
The Debt to FCF ratio of EMN is 8.37, which is on the high side as it means it would take EMN, 8.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMN (8.37) is comparable to the rest of the industry.
EMN has a Debt/Equity ratio of 0.81. This is a neutral value indicating EMN is somewhat dependend on debt financing.
EMN's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. EMN outperforms 40.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.37 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.91
WACC8.23%
2.3 Liquidity
EMN has a Current Ratio of 1.52. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, EMN is doing worse than 68.29% of the companies in the same industry.
EMN has a Quick Ratio of 1.52. This is a bad value and indicates that EMN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.78, EMN is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
EMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.58%, which is quite impressive.
Measured over the past years, EMN shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.79% on average per year.
Looking at the last year, EMN shows a decrease in Revenue. The Revenue has decreased by -0.34% in the last year.
The Revenue has been decreasing by -1.93% on average over the past years.
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS Q2Q%53.74%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Sales Q2Q%8.69%
3.2 Future
EMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.11% yearly.
EMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.71% yearly.
EPS Next Y20.44%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EPS Next 5Y12.11%
Revenue Next Year2.15%
Revenue Next 2Y2.92%
Revenue Next 3Y3.47%
Revenue Next 5Y1.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.52 indicates a correct valuation of EMN.
84.15% of the companies in the same industry are more expensive than EMN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. EMN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.46, the valuation of EMN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 84.15% of the companies listed in the same industry.
EMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued a bit cheaper than 65.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 9.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EMN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EMN's earnings are expected to grow with 15.60% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y17.06%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.56%, EMN has a reasonable but not impressive dividend return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.21. EMN pays more dividend than 82.93% of the companies in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of EMN is nicely growing with an annual growth rate of 7.23%!
EMN has been paying a dividend for at least 10 years, so it has 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)7.23%
Div Incr Years14
Div Non Decr Years29
5.3 Sustainability
42.82% of the earnings are spent on dividend by EMN. This is a bit on the high side, but may be sustainable.
EMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.82%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EASTMAN CHEMICAL CO
NYSE:EMN (1/30/2025, 12:03:48 PM)
91.76
-0.94 (-1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change-1.05%
Ins Owners0.71%
Ins Owner Change-0.19%
Market Cap10.64B
Analysts71.67
Price Target117.87 (28.45%)
Short Float %2.44%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend3.19
Dividend Growth(5Y)7.23%
DP42.82%
Div Incr Years14
Div Non Decr Years29
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.1%
Min EPS beat(2)4.42%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)5.34%
Min EPS beat(4)0.05%
Max EPS beat(4)11.11%
EPS beat(8)7
Avg EPS beat(8)2.93%
EPS beat(12)9
Avg EPS beat(12)1.78%
EPS beat(16)12
Avg EPS beat(16)2.47%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)2.62%
Revenue beat(4)1
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)4
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)1.15%
PT rev (1m)-0.1%
PT rev (3m)0.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 10.46 | ||
| P/S | 1.14 | ||
| P/FCF | 17.61 | ||
| P/OCF | 8.87 | ||
| P/B | 1.88 | ||
| P/tB | 11.47 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)7.33
EY7.99%
EPS(NY)8.77
Fwd EY9.56%
FCF(TTM)5.21
FCFY5.68%
OCF(TTM)10.34
OCFY11.27%
SpS80.61
BVpS48.78
TBVpS8
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROCE | 9.1% | ||
| ROIC | 7.46% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 13.06% | ||
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% | ||
| FCFM | 6.46% |
ROA(3y)5.68%
ROA(5y)4.95%
ROE(3y)15.6%
ROE(5y)13.49%
ROIC(3y)9.38%
ROIC(5y)8.16%
ROICexc(3y)9.78%
ROICexc(5y)8.47%
ROICexgc(3y)17.01%
ROICexgc(5y)15%
ROCE(3y)11.44%
ROCE(5y)9.99%
ROICexcg growth 3Y4.61%
ROICexcg growth 5Y-6%
ROICexc growth 3Y7.55%
ROICexc growth 5Y-4.15%
OM growth 3Y-0.89%
OM growth 5Y-6.24%
PM growth 3Y19.83%
PM growth 5Y-1.82%
GM growth 3Y-1.35%
GM growth 5Y-1.73%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.37 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 119.48% | ||
| Cap/Sales | 6.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.42% | ||
| Profit Quality | 68.25% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.57 |
F-Score8
WACC8.23%
ROIC/WACC0.91
Cap/Depr(3y)133.41%
Cap/Depr(5y)107.31%
Cap/Sales(3y)6.73%
Cap/Sales(5y)5.86%
Profit Quality(3y)76.5%
Profit Quality(5y)119.18%
High Growth Momentum
Growth
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS Q2Q%53.74%
EPS Next Y20.44%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EPS Next 5Y12.11%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Sales Q2Q%8.69%
Revenue Next Year2.15%
Revenue Next 2Y2.92%
Revenue Next 3Y3.47%
Revenue Next 5Y1.71%
EBIT growth 1Y11.93%
EBIT growth 3Y1.91%
EBIT growth 5Y-8.05%
EBIT Next Year60.05%
EBIT Next 3Y22.92%
EBIT Next 5Y15.43%
FCF growth 1Y96.1%
FCF growth 3Y-20.14%
FCF growth 5Y-11.66%
OCF growth 1Y26.48%
OCF growth 3Y-1.89%
OCF growth 5Y-2.29%