EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
63.83 USD
-0.5 (-0.78%)
63.41 USD
-0.42 (-0.66%)
Overall EMN gets a fundamental rating of 5 out of 10. We evaluated EMN against 83 industry peers in the Chemicals industry. While EMN has a great profitability rating, there are some minor concerns on its financial health. EMN is valued correctly, 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.
EMN had a positive operating cash flow in the past year.
In the past 5 years EMN has always been profitable.
EMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMN has a better Return On Assets (4.67%) than 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 6.09%.
| 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
The Profit Margin of EMN (7.75%) is better than 75.90% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
The Operating Margin of EMN (12.92%) is better than 68.67% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
EMN has a worse Gross Margin (22.85%) than 60.24% of its industry peers.
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
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
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
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.
The Altman-Z score of EMN (2.41) is better than 72.29% 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 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.
With a Debt to Equity ratio value of 0.88, EMN is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.69
WACC10.77%
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.
The Current ratio of EMN (1.76) is comparable to the rest of the industry.
EMN has a Quick Ratio of 1.76. 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 0.86. This is in the lower half of the industry: EMN underperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for EMN have decreased strongly by -11.05% in the last year.
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.
Looking at the last year, EMN shows a decrease in Revenue. The Revenue has decreased by -3.42% in the last year.
EMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.23% yearly.
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
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
The Revenue is expected to decrease by -0.52% on average over the next years.
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
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 9.79 indicates a reasonable valuation of EMN.
EMN's Price/Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 84.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. EMN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.23, the valuation of EMN can be described as reasonable.
81.93% of the companies in the same industry are more expensive than EMN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued a bit cheaper than 78.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than 73.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.43 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The decent profitability rating of EMN may justify a higher PE ratio.
EMN's earnings are expected to decrease with -3.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.72
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.35%, which is a nice return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 2.48. EMN pays more dividend than 87.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
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 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 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.51%
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
63.83
-0.5 (-0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.85%
Inst Owner Change-3.37%
Ins Owners0.7%
Ins Owner Change1.92%
Market Cap7.28B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target74.78 (17.15%)
Short Float %4.47%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
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)-3.78%
EPS NQ rev (1m)-11.65%
EPS NQ rev (3m)-36.42%
EPS NY rev (1m)-5.79%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-6.33%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 10.23 | ||
| P/S | 0.81 | ||
| P/FCF | 18.43 | ||
| P/OCF | 7.22 | ||
| P/B | 1.26 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)6.52
EY10.21%
EPS(NY)6.24
Fwd EY9.78%
FCF(TTM)3.46
FCFY5.43%
OCF(TTM)8.84
OCFY13.84%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.72
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 | 2.41 |
F-Score5
WACC10.77%
ROIC/WACC0.69
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 6 / 10 to EASTMAN CHEMICAL CO (EMN). This can be considered as Fairly Valued.
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%.