EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
65.25 USD
-1.21 (-1.82%)
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 belongs to the best of the industry regarding profitability, 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
EMN had positive earnings in the past year.
EMN had a positive operating cash flow in the past year.
EMN had positive earnings in each of the past 5 years.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.47%, EMN belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.26%, EMN belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
The Return On Invested Capital of EMN (8.30%) is better than 75.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMN is above the industry average of 6.34%.
| 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
Looking at the Profit Margin, with a value of 8.96%, EMN belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
In the last couple of years the Profit Margin of EMN has grown nicely.
The Operating Margin of EMN (14.14%) is better than 74.70% of its industry peers.
In the last couple of years the Operating Margin of EMN has remained more or less at the same level.
EMN has a Gross Margin (24.04%) which is in line with its industry peers.
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
EMN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.44. 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's Altman-Z score of 2.44 is fine compared to the rest of the industry. EMN outperforms 69.88% of its industry peers.
The Debt to FCF ratio of EMN is 12.63, which is on the high side as it means it would take EMN, 12.63 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.63, EMN perfoms like the industry average, outperforming 57.83% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
EMN's Debt to Equity ratio of 0.88 is in line compared to the rest of the industry. EMN outperforms 40.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.99
WACC8.38%
2.3 Liquidity
EMN has a Current Ratio of 1.68. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.68, EMN is doing worse than 63.86% of the companies in the same industry.
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 Quick ratio of 0.78. This is amonst the worse of the industry: EMN underperforms 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
EMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.82%, which is quite good.
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.
EMN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.52%.
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)16.82%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-3.22%
3.2 Future
The Earnings Per Share is expected to grow by 3.03% on average over the next years.
Based on estimates for the next years, EMN will show a decrease in Revenue. The Revenue will decrease by -0.24% on average per year.
EPS Next Y-22.58%
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
EPS Next 5Y3.03%
Revenue Next Year-4.05%
Revenue Next 2Y-0.86%
Revenue Next 3Y0.61%
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.
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
Based on the Price/Earnings ratio of 8.54, the valuation of EMN can be described as reasonable.
87.95% 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 27.41. EMN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.94, the valuation of EMN can be described as reasonable.
Based on the Price/Forward Earnings ratio, EMN is valued cheaply inside the industry as 89.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaper than 86.75% of the companies in the same industry.
EMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EMN is cheaper than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.45 | ||
| EV/EBITDA | 6.58 |
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)4.12
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 4.89%, which is a nice return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.43. EMN pays more dividend than 86.75% of the companies in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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 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 45.67% 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.
DP45.67%
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
NYSE:EMN (9/19/2025, 12:47:48 PM)
65.25
-1.21 (-1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.96%
Inst Owner Change-2.34%
Ins Owners0.66%
Ins Owner Change2.09%
Market Cap7.49B
Analysts78.26
Price Target77.72 (19.11%)
Short Float %2.61%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)-5.18%
PT rev (3m)-20.65%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-36.29%
EPS NY rev (1m)-17.03%
EPS NY rev (3m)-18.13%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-6.31%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 8.94 | ||
| P/S | 0.81 | ||
| P/FCF | 18.45 | ||
| P/OCF | 7.48 | ||
| P/B | 1.28 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)7.64
EY11.71%
EPS(NY)7.3
Fwd EY11.19%
FCF(TTM)3.54
FCFY5.42%
OCF(TTM)8.73
OCFY13.37%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.12
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%
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 Turnover0.61
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 | 2.44 |
F-Score6
WACC8.38%
ROIC/WACC0.99
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)16.82%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-25.58%
EPS Next Y-22.58%
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
EPS Next 5Y3.03%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-3.22%
Revenue Next Year-4.05%
Revenue Next 2Y-0.86%
Revenue Next 3Y0.61%
Revenue Next 5Y-0.24%
EBIT growth 1Y26.86%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year29.18%
EBIT Next 3Y15.43%
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%