EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
63.78 USD
+1.08 (+1.72%)
62.81 USD
-0.97 (-1.52%)
EMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. While EMN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EMN has a bad growth rate and is valued cheaply. Finally EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMN had positive earnings in the past year.
In the past year EMN had a positive cash flow from operations.
EMN had positive earnings in each of the past 5 years.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
EMN's Return On Assets of 5.47% is amongst the best of the industry. EMN outperforms 82.93% of its industry peers.
EMN has a better Return On Equity (14.26%) than 84.15% of its industry peers.
EMN has a better Return On Invested Capital (8.30%) than 76.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMN is above the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 14.26% | ||
| ROIC | 8.3% |
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's Profit Margin of 8.96% is amongst the best of the industry. EMN outperforms 84.15% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
EMN has a better Operating Margin (14.14%) than 73.17% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
The Gross Margin of EMN (24.04%) is comparable to the rest of the industry.
EMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 8.96% | ||
| GM | 24.04% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMN is creating some value.
The number of shares outstanding for EMN has been reduced compared to 1 year ago.
EMN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EMN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.42, EMN is doing good in the industry, outperforming 68.29% of the companies in the same industry.
EMN has a debt to FCF ratio of 12.63. This is a negative value and a sign of low solvency as EMN would need 12.63 years to pay back of all of its debts.
The Debt to FCF ratio of EMN (12.63) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, EMN is in line with its industry, outperforming 40.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.04
WACC7.97%
2.3 Liquidity
EMN has a Current Ratio of 1.68. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EMN (1.68) is worse than 63.41% of its industry peers.
EMN has a Quick Ratio of 1.68. 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 (0.78) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.82% over the past year.
EMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.08% yearly.
The Revenue has been growing slightly by 1.52% in the past year.
EMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.23% yearly.
EPS 1Y (TTM)16.82%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-3.22%
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 3.03% on average per year.
The Revenue is expected to decrease by -0.24% on average over the next years.
EPS Next Y-26.1%
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
EPS Next 5Y3.03%
Revenue Next Year-4.37%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.24%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.35, which indicates a very decent valuation of EMN.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 89.02% of the companies listed in the same industry.
EMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 9.33, the valuation of EMN can be described as reasonable.
EMN's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 89.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EMN to the average of the S&P500 Index (23.09), we can say EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaply inside the industry as 86.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.04 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
EMN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.02
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.26%, which is a nice return.
Compared to an average industry Dividend Yield of 3.69, EMN pays a better dividend. On top of this EMN pays more dividend than 85.37% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
The dividend of EMN has a limited annual growth rate of 5.58%.
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)5.58%
Div Incr Years15
Div Non Decr Years30
5.3 Sustainability
45.67% of the earnings are spent on dividend by EMN. This is a bit on the high side, but may be sustainable.
The dividend of EMN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.67%
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
63.78
+1.08 (+1.72%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change0.73%
Ins Owners0.69%
Ins Owner Change2.37%
Market Cap7.32B
Revenue(TTM)9.29B
Net Income(TTM)832.00M
Analysts76.52
Price Target78.32 (22.8%)
Short Float %3.56%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP45.67%
Div Incr Years15
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.17%
Min EPS beat(2)-8.32%
Max EPS beat(2)-0.03%
EPS beat(4)2
Avg EPS beat(4)3.58%
Min EPS beat(4)-8.32%
Max EPS beat(4)18.25%
EPS beat(8)6
Avg EPS beat(8)4.04%
EPS beat(12)9
Avg EPS beat(12)2.89%
EPS beat(16)10
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-1.84%
Revenue beat(16)5
Avg Revenue beat(16)0%
PT rev (1m)0.77%
PT rev (3m)-19.92%
EPS NQ rev (1m)-5.48%
EPS NQ rev (3m)-39.03%
EPS NY rev (1m)-2.49%
EPS NY rev (3m)-20.8%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-6.81%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 9.33 | ||
| P/S | 0.79 | ||
| P/FCF | 18.04 | ||
| P/OCF | 7.31 | ||
| P/B | 1.26 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)7.64
EY11.98%
EPS(NY)6.84
Fwd EY10.72%
FCF(TTM)3.54
FCFY5.54%
OCF(TTM)8.73
OCFY13.68%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.02
Graham Number93.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 14.26% | ||
| ROCE | 10.23% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.58% | ||
| ROICexgc | 13.57% | ||
| OM | 14.14% | ||
| PM (TTM) | 8.96% | ||
| GM | 24.04% | ||
| FCFM | 4.37% |
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-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 117.09% | ||
| Cap/Sales | 6.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.99% | ||
| Profit Quality | 48.8% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.42 |
F-Score6
WACC7.97%
ROIC/WACC1.04
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)16.82%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-25.58%
EPS Next Y-26.1%
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
EPS Next 5Y3.03%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-3.22%
Revenue Next Year-4.37%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.24%
EBIT growth 1Y26.86%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year25.43%
EBIT Next 3Y14.32%
EBIT Next 5Y11.73%
FCF growth 1Y21.56%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y-10.62%
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 7 / 10 to EASTMAN CHEMICAL CO (EMN). This can be considered as Undervalued.
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 8.35 and the Price/Book (PB) ratio is 1.26.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.