EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
60.41 USD
-1.12 (-1.82%)
60.41 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. EMN has an excellent profitability rating, but 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.
EMN had positive earnings in each of the past 5 years.
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 78.05% of its industry peers.
EMN has a Return On Equity of 12.11%. This is amongst the best in the industry. EMN outperforms 82.93% of its industry peers.
EMN has a Return On Invested Capital of 7.41%. This is in the better half of the industry: EMN outperforms 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMN is above the industry average of 6.05%.
| 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 75.61% of the companies in the same industry.
In the last couple of years the Profit Margin of EMN has grown nicely.
EMN has a better Operating Margin (12.92%) than 69.51% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
EMN's Gross Margin of 22.85% is in line compared to the rest of the industry. EMN outperforms 40.24% of its industry peers.
EMN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMN is creating some value.
The number of shares outstanding for EMN has been reduced compared to 1 year ago.
The number of shares outstanding for EMN has been reduced compared to 5 years ago.
The debt/assets ratio for EMN has been reduced compared to a year ago.
2.2 Solvency
EMN has an Altman-Z score of 2.39. 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.
Looking at the Altman-Z score, with a value of 2.39, EMN is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 12.85, EMN perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, EMN is in line with its industry, outperforming 40.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.92
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.76 indicates that EMN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.76, EMN perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that EMN may have some problems paying its short term obligations.
The Quick ratio of EMN (0.86) is worse than 75.61% 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 -11.05%.
The Earnings Per Share has been growing slightly by 2.08% on average over the past years.
The Revenue has decreased by -3.42% in the past 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
EMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.78% yearly.
The Revenue is expected to decrease by -0.52% on average over the next years.
EPS Next Y-29.3%
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
EPS Next 5Y2.78%
Revenue Next Year-5.89%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y-0.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
EMN is valuated reasonably with a Price/Earnings ratio of 9.27.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 85.37% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. EMN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.42, the valuation of EMN can be described as reasonable.
EMN's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 85.37% of the companies in the same industry.
EMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.27 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
EMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EMN is cheaper than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.45 | ||
| EV/EBITDA | 6.75 |
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 -2.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.47
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, EMN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.98, EMN pays a better dividend. On top of this EMN pays more dividend than 87.80% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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
54.51% 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.
DP54.51%
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
60.41
-1.12 (-1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.85%
Inst Owner Change-3.38%
Ins Owners0.7%
Ins Owner Change1.92%
Market Cap6.89B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target74.18 (22.79%)
Short Float %3.64%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP54.51%
Div Incr Years15
Div Non Decr Years30
Ex-Date
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)-2.45%
PT rev (3m)-6.97%
EPS NQ rev (1m)-5.74%
EPS NQ rev (3m)-37.06%
EPS NY rev (1m)-4.23%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-5.96%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.27 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.76 | ||
| P/FCF | 17.45 | ||
| P/OCF | 6.84 | ||
| P/B | 1.19 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)6.52
EY10.79%
EPS(NY)6.41
Fwd EY10.61%
FCF(TTM)3.46
FCFY5.73%
OCF(TTM)8.84
OCFY14.63%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.47
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 | 2.39 |
F-Score5
WACC8.07%
ROIC/WACC0.92
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-29.3%
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
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-5.89%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y-0.52%
EBIT growth 1Y2.73%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year20.62%
EBIT Next 3Y11.96%
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.
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 9.27 and the Price/Book (PB) ratio is 1.19.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.