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%)
EMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. EMN scores excellent on profitability, but there are some minor concerns on its financial health. EMN is valued quite cheap, but it does not seem to be growing. 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.
- In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
- EMN's Return On Assets of 4.67% is fine compared to the rest of the industry. EMN outperforms 78.05% of its industry peers.
- Looking at the Return On Equity, with a value of 12.11%, EMN belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
- EMN has a better Return On Invested Capital (7.41%) than 73.17% of its industry peers.
- EMN had an Average Return On Invested Capital over the past 3 years of 8.36%. This 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
- With a decent Profit Margin value of 7.75%, EMN is doing good in the industry, outperforming 75.61% of the companies in the same industry.
- In the last couple of years the Profit Margin of EMN has grown nicely.
- With a decent Operating Margin value of 12.92%, EMN is doing good in 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.
- Looking at the Gross Margin, with a value of 22.85%, EMN is doing worse than 60.98% 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 | 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) below the Cost of Capital (WACC), EMN is destroying value.
- Compared to 1 year ago, EMN has less shares outstanding
- 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
- EMN has an Altman-Z score of 2.46. 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 has a better Altman-Z score (2.46) than 65.85% of its industry peers.
- 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 has a Debt to FCF ratio (12.85) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
- The Debt to Equity ratio of EMN (0.88) is worse than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.67
WACC11%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that EMN should not have too much problems paying its short term obligations.
- EMN has a Current ratio (1.76) which is in line with its industry peers.
- A Quick Ratio of 0.86 indicates that EMN may have some problems paying its short term obligations.
- EMN has a worse Quick ratio (0.86) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- EMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.05%.
- 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 decreased by -3.42% in the past year.
- The Revenue has been growing slightly by 0.23% on average over the past years.
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 2.78% on average per year.
- Based on estimates for the next years, EMN will show a decrease in Revenue. The Revenue will decrease by -0.52% on average per year.
EPS Next Y-30.45%
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
EPS Next 5Y2.78%
Revenue Next Year-6.17%
Revenue Next 2Y-2.8%
Revenue Next 3Y-0.98%
Revenue Next 5Y-0.52%
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 10.53 indicates a reasonable valuation of EMN.
- 85.37% 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 27.47. EMN is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.00, the valuation of EMN can be described as very reasonable.
- 82.93% of the companies in the same industry are more expensive than EMN, based on the Price/Forward Earnings ratio.
- EMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 11 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 80.49% of the companies listed in the same industry.
- 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 | 7.34 |
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
- EMN has a Yearly Dividend Yield of 4.89%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.34, 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 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
- The dividend of EMN has a limited annual growth rate of 5.58%.
- EMN has paid a dividend for at least 10 years, which is 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.
- 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)01-22 2026-01-22/amc
Inst Owners90.86%
Inst Owner Change-0.01%
Ins Owners0.7%
Ins Owner Change1.92%
Market Cap7.83B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts75.65
Price Target74.78 (8.9%)
Short Float %4.47%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)0.81%
PT rev (3m)-4.52%
EPS NQ rev (1m)-5.54%
EPS NQ rev (3m)-33.92%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.03%
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 | 7.34 |
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 | 2.46 |
F-Score5
WACC11%
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-6.17%
Revenue Next 2Y-2.8%
Revenue Next 3Y-0.98%
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%.