EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
63.52 USD
+0.66 (+1.05%)
63.52 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 84 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 valuation in line with the averages, but it does not seem to be growing. 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.
EMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMN's Return On Assets of 4.67% is fine compared to the rest of the industry. EMN outperforms 78.57% of its industry peers.
The Return On Equity of EMN (12.11%) is better than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.41%, EMN is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
EMN has a Profit Margin of 7.75%. This is in the better half of the industry: EMN outperforms 76.19% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
EMN's Operating Margin of 12.92% is fine compared to the rest of the industry. EMN outperforms 69.05% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 22.85%, EMN is in line with its industry, outperforming 40.48% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMN 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.
The debt/assets ratio for EMN has been reduced compared to a year ago.
2.2 Solvency
EMN has an Altman-Z score of 2.40. 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 (2.40) is better than 71.43% of its industry peers.
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 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that 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 | 12.85 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.69
WACC10.76%
2.3 Liquidity
A Current Ratio of 1.76 indicates that EMN should not have too much problems paying its short term obligations.
EMN has a Current ratio (1.76) which is comparable to the rest of the industry.
A Quick Ratio of 0.86 indicates that EMN may have some problems paying its short term obligations.
EMN has a worse Quick ratio (0.86) than 75.00% 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%.
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 decreased by -3.42% 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)-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.
Based on estimates for the next years, EMN will show a decrease in Revenue. The Revenue will decrease by -0.52% on average per year.
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
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
Based on the Price/Earnings ratio of 9.74, the valuation of EMN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, EMN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.91, the valuation of EMN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EMN is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
EMN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMN is cheaper than 77.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
EMN has a very decent profitability rating, which 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)4.7
EPS Next 2Y-9.86%
EPS Next 3Y-2.43%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.24%, which is a nice return.
Compared to an average industry Dividend Yield of 2.46, EMN pays a better dividend. On top of this EMN pays more dividend than 88.10% 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
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
54.51% of the earnings are spent on dividend by EMN. 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-9.86%
EPS Next 3Y-2.43%
63.52
+0.66 (+1.05%)
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 Cap7.25B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price TargetN/A
Short Float %3.76%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
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)-4.55%
EPS NQ rev (1m)-6.47%
EPS NQ rev (3m)-32.69%
EPS NY rev (1m)-4.23%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-5.83%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.8 | ||
| P/FCF | 18.34 | ||
| P/OCF | 7.19 | ||
| P/B | 1.26 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)6.52
EY10.26%
EPS(NY)6.41
Fwd EY10.09%
FCF(TTM)3.46
FCFY5.45%
OCF(TTM)8.84
OCFY13.91%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.7
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 | 2.4 |
F-Score5
WACC10.76%
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-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 6 / 10 to EASTMAN CHEMICAL CO (EMN). This can be considered as Fairly Valued.
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 9.74 and the Price/Book (PB) ratio is 1.26.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.