EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:EMN • US2774321002
69.32 USD
+0.33 (+0.48%)
At close: Jan 30, 2026
69.32 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, EMN scores 5 out of 10 in our fundamental rating. EMN was compared to 83 industry peers in the Chemicals industry. While EMN is still in line with the averages on profitability rating, there are concerns on its financial health. EMN is cheap, but on the other hand it scores bad on growth. EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EMN had positive earnings in the past year.
- EMN had a positive operating cash flow in the past year.
- EMN had positive earnings in 4 of the past 5 years.
- EMN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- EMN's Return On Assets of 4.67% is fine compared to the rest of the industry. EMN outperforms 78.31% 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 83.13% of the companies in the same industry.
- EMN's Return On Invested Capital of 7.41% is fine compared to the rest of the industry. EMN outperforms 73.49% of its industry peers.
- 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
- With a decent Profit Margin value of 7.75%, EMN is doing good in the industry, outperforming 75.90% 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 68.67% 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 60.24% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMN is destroying value.
- EMN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 2.45 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- EMN has a Altman-Z score of 2.45. This is in the better half of the industry: EMN outperforms 63.86% 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.
- EMN has a Debt/Equity ratio of 0.88. This is a neutral value indicating 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 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.67
WACC11.08%
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 42.17% of its industry peers.
- A Quick Ratio of 0.86 indicates that EMN may have some problems paying its short term obligations.
- EMN has a Quick ratio of 0.86. This is in the lower half of the industry: EMN underperforms 75.90% 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 -31.56%.
- EMN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.54% yearly.
EPS 1Y (TTM)-31.56%
EPS 3Y-11.65%
EPS 5Y-2.54%
EPS Q2Q%-59.89%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-12.12%
3.2 Future
- Based on estimates for the next years, EMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.78% on average per year.
- The Revenue is expected to grow by 1.00% on average over the next years.
EPS Next Y14.14%
EPS Next 2Y14.43%
EPS Next 3Y14.31%
EPS Next 5Y13.78%
Revenue Next Year0.34%
Revenue Next 2Y1.59%
Revenue Next 3Y2.46%
Revenue Next 5Y1%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.84, EMN is valued correctly.
- EMN's Price/Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 81.93% of the companies in the same industry.
- EMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- A Price/Forward Earnings ratio of 11.25 indicates a reasonable valuation of EMN.
- Based on the Price/Forward Earnings ratio, EMN is valued cheaply inside the industry as 85.54% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaply inside the industry as 81.93% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
- EMN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of EMN may justify a higher PE ratio.
- EMN's earnings are expected to grow with 14.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y14.43%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
- EMN has a Yearly Dividend Yield of 4.87%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.24, EMN pays a better dividend. On top of this EMN pays more dividend than 89.16% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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 earnings are growing more, so the dividend growth is sustainable.
DP54.51%
EPS Next 2Y14.43%
EPS Next 3Y14.31%
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 8 / 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 6 / 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 grow by 14.14% 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%.