EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
61.53 USD
+0.28 (+0.46%)
61.53 USD
0 (0%)
Taking everything into account, EMN scores 5 out of 10 in our fundamental rating. 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. 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.
Each year in the past 5 years EMN has been profitable.
Each year in the past 5 years EMN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EMN (5.47%) is better than 82.93% of its industry peers.
EMN has a Return On Equity of 14.26%. This is amongst the best in the industry. EMN outperforms 84.15% of its industry peers.
EMN has a better Return On Invested Capital (8.30%) than 76.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMN is above the industry average of 6.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 14.26% | ||
| ROIC | 8.3% |
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
The Profit Margin of EMN (8.96%) is better than 82.93% 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 14.14%, EMN is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
EMN's Operating Margin has been stable in the last couple of years.
The Gross Margin of EMN (24.04%) is comparable to the rest of the industry.
EMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 8.96% | ||
| GM | 24.04% |
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 just above the Cost of Capital (WACC), so EMN is still 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 2.41. 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.
With a decent Altman-Z score value of 2.41, EMN is doing good in the industry, outperforming 73.17% of the companies in the same industry.
EMN has a debt to FCF ratio of 12.63. This is a negative value and a sign of low solvency as EMN would need 12.63 years to pay back of all of its debts.
EMN has a Debt to FCF ratio (12.63) which is in line with its industry peers.
EMN has a Debt/Equity ratio of 0.88. This is a neutral value indicating EMN is somewhat dependend on debt financing.
The Debt to Equity ratio of EMN (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.06
WACC7.86%
2.3 Liquidity
A Current Ratio of 1.68 indicates that EMN should not have too much problems paying its short term obligations.
EMN has a Current ratio of 1.68. This is in the lower half of the industry: EMN underperforms 65.85% of its industry peers.
EMN has a Quick Ratio of 1.68. 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 worse Quick ratio (0.78) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 |
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.
The Revenue has been growing slightly by 1.87% 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)1.87%
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.
EMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
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
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
A Price/Earnings ratio of 9.44 indicates a reasonable valuation of EMN.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 86.59% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. EMN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.05, 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 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 33.61, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
85.37% of the companies in the same industry are more expensive than EMN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 70.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 6.25 |
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)4.55
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, EMN is a good candidate for dividend investing.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.99. EMN pays more dividend than 86.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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
45.67% 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.
DP45.67%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
61.53
+0.28 (+0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change-1.69%
Ins Owners0.69%
Ins Owner Change1.93%
Market Cap7.07B
Revenue(TTM)9.38B
Net Income(TTM)832.00M
Analysts76.52
Price Target76.04 (23.58%)
Short Float %3.56%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP45.67%
Div Incr Years15
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.17%
Min EPS beat(2)-8.32%
Max EPS beat(2)-0.03%
EPS beat(4)2
Avg EPS beat(4)3.58%
Min EPS beat(4)-8.32%
Max EPS beat(4)18.25%
EPS beat(8)6
Avg EPS beat(8)4.04%
EPS beat(12)9
Avg EPS beat(12)2.89%
EPS beat(16)10
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-1.84%
Revenue beat(16)5
Avg Revenue beat(16)0%
PT rev (1m)-2.91%
PT rev (3m)-7.22%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-31.29%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-20.88%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-6.01%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.76 | ||
| P/FCF | 17.4 | ||
| P/OCF | 7.05 | ||
| P/B | 1.21 | ||
| P/tB | 6.19 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)6.52
EY10.6%
EPS(NY)6.8
Fwd EY11.05%
FCF(TTM)3.54
FCFY5.75%
OCF(TTM)8.73
OCFY14.18%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.55
Graham Number86.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 14.26% | ||
| ROCE | 10.23% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.58% | ||
| ROICexgc | 13.57% | ||
| OM | 14.14% | ||
| PM (TTM) | 8.96% | ||
| GM | 24.04% | ||
| FCFM | 4.37% |
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-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 117.09% | ||
| Cap/Sales | 6.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.99% | ||
| Profit Quality | 48.8% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.41 |
F-Score6
WACC7.86%
ROIC/WACC1.06
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)1.87%
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 1Y26.86%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year25.43%
EBIT Next 3Y14.32%
EBIT Next 5Y11.73%
FCF growth 1Y21.56%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y-10.62%
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 9.44 and the Price/Book (PB) ratio is 1.21.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.