EASTMAN CHEMICAL CO (EMN)
US2774321002 - Common Stock
Overall EMN gets a fundamental rating of 5 out of 10. We evaluated EMN against 84 industry peers in the Chemicals industry. EMN has an average financial health and profitability rating. EMN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EMN was profitable.
EMN had a positive operating cash flow in the past year.
In the past 5 years EMN has always been profitable.
Each year in the past 5 years EMN had a positive operating cash flow.
1.2 Ratios
EMN has a better Return On Assets (5.88%) than 81.18% of its industry peers.
With a decent Return On Equity value of 15.65%, EMN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
EMN's Return On Invested Capital of 7.46% is fine compared to the rest of the industry. EMN outperforms 74.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMN is above the industry average of 6.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROIC | 7.46% |
ROA(3y)5.68%
ROA(5y)4.95%
ROE(3y)15.6%
ROE(5y)13.49%
ROIC(3y)9.38%
ROIC(5y)8.16%
1.3 Margins
EMN has a Profit Margin of 9.47%. This is amongst the best in the industry. EMN outperforms 81.18% of its industry peers.
In the last couple of years the Profit Margin of EMN has declined.
With a decent Operating Margin value of 12.15%, EMN is doing good in the industry, outperforming 69.41% of the companies in the same industry.
In the last couple of years the Operating Margin of EMN has declined.
With a Gross Margin value of 23.54%, EMN perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
In the last couple of years the Gross Margin of EMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% |
OM growth 3Y-0.89%
OM growth 5Y-6.24%
PM growth 3Y19.83%
PM growth 5Y-1.82%
GM growth 3Y-1.35%
GM growth 5Y-1.73%
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.
EMN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EMN has been reduced compared to 5 years ago.
EMN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.65 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.65, EMN is doing good in the industry, outperforming 76.47% of the companies in the same industry.
The Debt to FCF ratio of EMN is 8.37, which is on the high side as it means it would take EMN, 8.37 years of fcf income to pay off all of its debts.
EMN has a Debt to FCF ratio (8.37) which is in line with its industry peers.
A Debt/Equity ratio of 0.81 indicates that EMN is somewhat dependend on debt financing.
The Debt to Equity ratio of EMN (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.37 | ||
| Altman-Z | 2.65 |
ROIC/WACC1
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.52 indicates that EMN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, EMN is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
A Quick Ratio of 0.78 indicates that EMN may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, EMN is not doing good in the industry: 87.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.58% over the past year.
Measured over the past years, EMN shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.79% on average per year.
Looking at the last year, EMN shows a decrease in Revenue. The Revenue has decreased by -0.34% in the last year.
Measured over the past years, EMN shows a decrease in Revenue. The Revenue has been decreasing by -1.93% on average per year.
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS Q2Q%53.74%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Sales Q2Q%8.69%
3.2 Future
EMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.09% yearly.
The Revenue is expected to grow by 1.69% on average over the next years.
EPS Next Y20.43%
EPS Next 2Y17.15%
EPS Next 3Y15.62%
EPS Next 5Y12.09%
Revenue Next Year2.28%
Revenue Next 2Y3.29%
Revenue Next 3Y3.79%
Revenue Next 5Y1.69%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EMN is valuated correctly with a Price/Earnings ratio of 14.13.
EMN's Price/Earnings ratio is a bit cheaper when compared to the industry. EMN is cheaper than 78.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. EMN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.80, which indicates a very decent valuation of EMN.
Based on the Price/Forward Earnings ratio, EMN is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
EMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
EMN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMN is cheaper than 64.71% of the companies 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 65.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.88 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as EMN's earnings are expected to grow with 15.62% in the coming years.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y17.15%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 3.22%.
EMN's Dividend Yield is a higher than the industry average which is at 2.95.
EMN's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
On average, the dividend of EMN grows each year by 7.23%, which is quite nice.
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)7.23%
Div Incr Years14
Div Non Decr Years29
5.3 Sustainability
EMN pays out 42.82% of its income as dividend. This is a bit on the high side, but may be sustainable.
EMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.82%
EPS Next 2Y17.15%
EPS Next 3Y15.62%
EASTMAN CHEMICAL CO
NYSE:EMN (11/21/2024, 8:24:40 PM)
After market: 103.6 0 (0%)103.6
+2.23 (+2.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 11.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y
EPS Q2Q%
EPS Next Y20.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y