EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
57.22 USD
+0.85 (+1.51%)
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 has a great profitability rating, there are some minor concerns on its financial health. EMN has a valuation in line with the averages, but on the other hand it scores bad on growth. EMN also has an excellent dividend rating. With these ratings, EMN could be worth investigating further for dividend investing!.
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.
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
EMN has a Return On Assets of 4.67%. This is in the better half of the industry: EMN outperforms 76.83% of its industry peers.
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 6.13%.
| 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
With a decent Profit Margin value of 7.75%, EMN is doing good in the industry, outperforming 76.83% of the companies in the same industry.
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 69.51% of the companies in the same industry.
EMN's Operating Margin has been stable in the last couple of years.
EMN's Gross Margin of 22.85% is in line compared to the rest of the industry. EMN outperforms 41.46% of its industry peers.
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
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.
Compared to 5 years ago, EMN has less shares outstanding
Compared to 1 year ago, EMN has an improved debt to assets ratio.
2.2 Solvency
EMN has an Altman-Z score of 2.36. 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 2.36, EMN is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
The Debt to FCF ratio of EMN is 12.85, which is on the high side as it means it would take EMN, 12.85 years of fcf income to pay off all of its debts.
EMN's Debt to FCF ratio of 12.85 is fine compared to the rest of the industry. EMN outperforms 60.98% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, EMN perfoms like the industry average, outperforming 40.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.94
WACC7.9%
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 has a Current ratio (1.76) which is in line with 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. EMN is outperformed by 76.83% 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.
Measured over the past 5 years, EMN shows a small growth in Earnings Per Share. The EPS has been growing by 2.08% on average per year.
Looking at the last year, EMN shows a decrease in Revenue. The Revenue has decreased by -3.42% in the last year.
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
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-26.17%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
EPS Next 5Y3.03%
Revenue Next Year-4.41%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 8.78 indicates a reasonable valuation of EMN.
Based on the Price/Earnings ratio, EMN is valued cheaply inside the industry as 86.59% of the companies are valued more expensively.
EMN is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.41, the valuation of EMN can be described as very 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 79.27% of the companies listed 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 73.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| EV/EBITDA | 6.42 |
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)4.23
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.29%, which is a nice return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 4.00. EMN pays more dividend than 85.37% of the companies in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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
EMN pays out 54.51% of its income as dividend. 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.
DP54.51%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
NYSE:EMN (11/21/2025, 9:45:05 AM)
57.22
+0.85 (+1.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change-3.44%
Ins Owners0.69%
Ins Owner Change3.55%
Market Cap6.57B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target76.04 (32.89%)
Short Float %4.17%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
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)-2.91%
PT rev (3m)-7.22%
EPS NQ rev (1m)-22.28%
EPS NQ rev (3m)-33.23%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-20.88%
Revenue NQ rev (1m)-4.81%
Revenue NQ rev (3m)-5.84%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.73 | ||
| P/FCF | 16.63 | ||
| P/OCF | 6.52 | ||
| P/B | 1.14 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | 6.42 |
EPS(TTM)6.52
EY11.39%
EPS(NY)6.8
Fwd EY11.88%
FCF(TTM)3.44
FCFY6.01%
OCF(TTM)8.78
OCFY15.34%
SpS78.59
BVpS50.26
TBVpS9.56
PEG (NY)N/A
PEG (5Y)4.23
Graham Number85.86
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 | 2.36 |
F-Score5
WACC7.9%
ROIC/WACC0.94
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-26.17%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
EPS Next 5Y3.03%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-10.63%
Revenue Next Year-4.41%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.24%
EBIT growth 1Y2.73%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year25.43%
EBIT Next 3Y14.32%
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 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 8.78 and the Price/Book (PB) ratio is 1.14.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 5 / 10.