EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
68.67 USD
-1.56 (-2.22%)
67.7067 USD
-0.96 (-1.4%)
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 82 industry peers in the Chemicals industry. While EMN has a great profitability rating, 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
- In the past year EMN was profitable.
- In the past year EMN had a positive cash flow from operations.
- In the past 5 years EMN has always been profitable.
- Each year in the past 5 years EMN had a positive operating cash flow.
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.
- With an excellent Return On Equity value of 12.11%, EMN belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for EMN is above the industry average of 6.11%.
| 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's Profit Margin of 7.75% is fine compared to the rest of the industry. EMN outperforms 75.61% of its industry peers.
- EMN's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 12.92%, EMN is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
- EMN's Operating Margin has been stable in the last couple of years.
- EMN has a worse Gross Margin (22.85%) than 60.98% of its industry peers.
- EMN's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMN is destroying value.
- Compared to 1 year ago, EMN has less shares outstanding
- Compared to 5 years ago, EMN has less shares outstanding
- EMN has a better debt/assets ratio than last year.
2.2 Solvency
- EMN has an Altman-Z score of 2.44. 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.
- EMN's Altman-Z score of 2.44 is fine compared to the rest of the industry. EMN outperforms 65.85% of its industry peers.
- 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.
- The Debt to FCF ratio of EMN (12.85) 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 doing worse than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.67
WACC11.05%
2.3 Liquidity
- EMN has a Current Ratio of 1.76. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
- EMN's Current ratio of 1.76 is in line compared to the rest of the industry. EMN outperforms 42.68% of its industry peers.
- 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 Quick ratio of 0.86. This is in the lower half of the industry: EMN underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The earnings per share for EMN have decreased strongly by -11.05% in the last year.
- 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%.
- Measured over the past years, EMN shows a small growth in Revenue. The Revenue has been growing by 0.23% on average per year.
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
- EMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.78% yearly.
- The Revenue is expected to decrease by -0.52% on average over the next years.
EPS Next Y-30.45%
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
EPS Next 5Y2.78%
Revenue Next Year-6.39%
Revenue Next 2Y-3.08%
Revenue Next 3Y-1.14%
Revenue Next 5Y-0.52%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.53, the valuation of EMN can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 85.37% of the companies listed in the same industry.
- EMN is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- EMN is valuated reasonably with a Price/Forward Earnings ratio of 11.00.
- Based on the Price/Forward Earnings ratio, EMN is valued cheaper than 84.15% of the companies in the same industry.
- EMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 11 |
4.2 Price Multiples
- 81.71% of the companies in the same industry are more expensive than EMN, based on the Enterprise Value to EBITDA ratio.
- 71.95% of the companies in the same industry are more expensive than EMN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
- EMN has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as EMN's earnings are expected to decrease with -3.28% in the coming years.
PEG (NY)N/A
PEG (5Y)5.08
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.78%, EMN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.28, EMN pays a better dividend. On top of this EMN pays more dividend than 89.02% 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 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.58%
Div Incr Years15
Div Non Decr Years30
5.3 Sustainability
- 54.51% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP54.51%
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
68.67
-1.56 (-2.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners90.86%
Inst Owner Change1.62%
Ins Owners0.7%
Ins Owner Change1.92%
Market Cap7.83B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts75.65
Price Target74.42 (8.37%)
Short Float %3.86%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP54.51%
Div Incr Years15
Div Non Decr Years30
Ex-DateN/A
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)0.32%
PT rev (3m)-4.98%
EPS NQ rev (1m)-11.24%
EPS NQ rev (3m)-34.98%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)-1.4%
Revenue NQ rev (3m)-6.64%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 11 | ||
| P/S | 0.87 | ||
| P/FCF | 19.83 | ||
| P/OCF | 7.77 | ||
| P/B | 1.36 | ||
| P/tB | 7.13 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)6.52
EY9.49%
EPS(NY)6.24
Fwd EY9.09%
FCF(TTM)3.46
FCFY5.04%
OCF(TTM)8.84
OCFY12.87%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)5.08
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 | 2.44 |
F-Score5
WACC11.05%
ROIC/WACC0.67
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-30.45%
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
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-6.39%
Revenue Next 2Y-3.08%
Revenue Next 3Y-1.14%
Revenue Next 5Y-0.52%
EBIT growth 1Y2.73%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year19.97%
EBIT Next 3Y11.33%
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.
Can you provide the valuation status for EASTMAN CHEMICAL CO?
ChartMill assigns a valuation rating of 7 / 10 to EASTMAN CHEMICAL CO (EMN). This can be considered as Undervalued.
Can you provide the profitability details for EASTMAN CHEMICAL CO?
EASTMAN CHEMICAL CO (EMN) has a profitability rating of 7 / 10.
What is the expected EPS growth for EASTMAN CHEMICAL CO (EMN) stock?
The Earnings per Share (EPS) of EASTMAN CHEMICAL CO (EMN) is expected to decline by -30.45% in the next year.
How sustainable is the dividend of EASTMAN CHEMICAL CO (EMN) stock?
The dividend rating of EASTMAN CHEMICAL CO (EMN) is 8 / 10 and the dividend payout ratio is 54.51%.