EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
NYSE:EMN - New York Stock Exchange, Inc. - US2774321002 - Common Stock - Currency: USD
Overall EMN gets a fundamental rating of 6 out of 10. We evaluated EMN against 85 industry peers in the Chemicals industry. EMN has an excellent profitability rating, but there are some minor concerns on its financial health. EMN has a decent growth rate and is not valued too expensively. 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.
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 6.16%, EMN belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
EMN's Return On Equity of 15.70% is amongst the best of the industry. EMN outperforms 84.71% of its industry peers.
EMN has a Return On Invested Capital of 8.81%. This is in the better half of the industry: EMN outperforms 77.65% of its industry peers.
EMN had an Average Return On Invested Capital over the past 3 years of 8.36%. This is in line with the industry average of 6.84%.
The 3 year average ROIC (8.36%) for EMN is below the current ROIC(8.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 15.7% | ||
| ROIC | 8.81% |
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
Looking at the Profit Margin, with a value of 9.85%, EMN belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
EMN's Profit Margin has improved in the last couple of years.
EMN has a Operating Margin of 14.67%. This is in the better half of the industry: EMN outperforms 77.65% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 24.83%, EMN is in line with its industry, outperforming 45.88% of the companies in the same industry.
EMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.67% | ||
| PM (TTM) | 9.85% | ||
| GM | 24.83% |
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 2.62. 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.
The Altman-Z score of EMN (2.62) is better than 75.29% of its industry peers.
EMN has a debt to FCF ratio of 8.73. This is a slightly negative value and a sign of low solvency as EMN would need 8.73 years to pay back of all of its debts.
EMN's Debt to FCF ratio of 8.73 is fine compared to the rest of the industry. EMN outperforms 65.88% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that EMN is somewhat dependend on debt financing.
The Debt to Equity ratio of EMN (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.05
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.72 indicates that EMN should not have too much problems paying its short term obligations.
The Current ratio of EMN (1.72) is worse than 61.18% of its industry peers.
A Quick Ratio of 0.79 indicates that EMN may have some problems paying its short term obligations.
EMN has a Quick ratio of 0.79. This is amonst the worse of the industry: EMN underperforms 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.37% 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.
Looking at the last year, EMN shows a small growth in Revenue. The Revenue has grown by 2.79% in the last 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)28.37%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%18.63%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-0.87%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
The Revenue is expected to grow by 0.59% on average over the next years.
EPS Next Y-5.69%
EPS Next 2Y2.76%
EPS Next 3Y5.45%
EPS Next 5Y5.4%
Revenue Next Year-1.34%
Revenue Next 2Y0.92%
Revenue Next 3Y1.68%
Revenue Next 5Y0.59%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
EMN is valuated reasonably with a Price/Earnings ratio of 9.80.
Based on the Price/Earnings ratio, EMN is valued cheaper than 89.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. EMN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.63, 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 somewhat cheap valuation: EMN is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 9.63 |
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 80.00% 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 77.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.12 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
EMN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.72
EPS Next 2Y2.76%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 4.17%, which is a nice return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.57. EMN pays more dividend than 84.71% of the companies in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
EMN pays out 41.21% 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.
DP41.21%
EPS Next 2Y2.76%
EPS Next 3Y5.45%
80.26
-1.3 (-1.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.28%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change6.82%
Market Cap9.27B
Analysts78.26
Price Target99.25 (23.66%)
Short Float %2.72%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP41.21%
Div Incr Years15
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.11%
Min EPS beat(2)-0.03%
Max EPS beat(2)18.25%
EPS beat(4)3
Avg EPS beat(4)7.11%
Min EPS beat(4)-0.03%
Max EPS beat(4)18.25%
EPS beat(8)7
Avg EPS beat(8)5.32%
EPS beat(12)10
Avg EPS beat(12)3.91%
EPS beat(16)11
Avg EPS beat(16)2.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-2.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.4%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)6
Avg Revenue beat(16)0.68%
PT rev (1m)-0.78%
PT rev (3m)-14.66%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-20.72%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-12.97%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-4.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.99 | ||
| P/FCF | 16.12 | ||
| P/OCF | 8.16 | ||
| P/B | 1.58 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)8.19
EY10.2%
EPS(NY)8.33
Fwd EY10.38%
FCF(TTM)4.98
FCFY6.2%
OCF(TTM)9.84
OCFY12.26%
SpS81.08
BVpS50.85
TBVpS10.46
PEG (NY)N/A
PEG (5Y)4.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 15.7% | ||
| ROCE | 10.81% | ||
| ROIC | 8.81% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 14.47% | ||
| OM | 14.67% | ||
| PM (TTM) | 9.85% | ||
| GM | 24.83% | ||
| FCFM | 6.14% |
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%
ROICexcg growth 3Y-10.23%
ROICexcg 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.73 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 110.43% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.39% | ||
| Profit Quality | 62.36% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.62 |
F-Score6
WACC8.36%
ROIC/WACC1.05
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)28.37%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%18.63%
EPS Next Y-5.69%
EPS Next 2Y2.76%
EPS Next 3Y5.45%
EPS Next 5Y5.4%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-0.87%
Revenue Next Year-1.34%
Revenue Next 2Y0.92%
Revenue Next 3Y1.68%
Revenue Next 5Y0.59%
EBIT growth 1Y34.61%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year42.05%
EBIT Next 3Y17.45%
EBIT Next 5Y11.73%
FCF growth 1Y112.18%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y18.83%
OCF growth 3Y-7.36%
OCF growth 5Y-3.07%