EASTMAN CHEMICAL CO (EMN)
US2774321002 - Common Stock
Overall EMN gets a fundamental rating of 5 out of 10. We evaluated EMN against 83 industry peers in the Chemicals industry. Both the profitability and the financial health of EMN get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on EMN. Finally EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMN had positive earnings in the past year.
In the past year EMN had a positive cash flow from operations.
Each year in the past 5 years EMN has been profitable.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EMN (5.88%) is better than 81.93% of its industry peers.
EMN has a better Return On Equity (15.65%) than 81.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.46%, EMN is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
EMN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is above the industry average of 7.24%.
| 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
Looking at the Profit Margin, with a value of 9.47%, EMN belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
In the last couple of years the Profit Margin of EMN has declined.
EMN's Operating Margin of 12.15% is fine compared to the rest of the industry. EMN outperforms 68.67% of its industry peers.
EMN's Operating Margin has declined in the last couple of years.
The Gross Margin of EMN (23.54%) is comparable to the rest of the industry.
EMN's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for EMN has been reduced compared to 1 year ago.
Compared to 5 years ago, EMN has less shares outstanding
The debt/assets ratio for EMN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.56 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EMN (2.56) is better than 74.70% of its industry peers.
EMN has a debt to FCF ratio of 8.37. This is a slightly negative value and a sign of low solvency as EMN would need 8.37 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.37, EMN perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that EMN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, EMN is in line with its industry, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.37 | ||
| Altman-Z | 2.56 |
ROIC/WACC1
WACC7.43%
2.3 Liquidity
EMN has a Current Ratio of 1.52. 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 1.52, EMN is doing worse than 69.88% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that EMN may have some problems paying its short term obligations.
EMN has a worse Quick ratio (0.78) than 86.75% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -4.79% on average over the past years.
The Revenue has decreased by -0.34% in the past year.
EMN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.93% yearly.
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 12.11% yearly.
EMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.71% yearly.
EPS Next Y20.44%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EPS Next 5Y12.11%
Revenue Next Year2.26%
Revenue Next 2Y3.22%
Revenue Next 3Y3.68%
Revenue Next 5Y1.71%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 12.51, EMN is valued correctly.
Based on the Price/Earnings ratio, EMN is valued cheaper than 80.72% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. EMN is valued rather cheaply when compared to this.
EMN is valuated reasonably with a Price/Forward Earnings ratio of 10.45.
Based on the Price/Forward Earnings ratio, EMN is valued cheaper than 80.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. EMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
62.65% of the companies in the same industry are more expensive than EMN, based on the Enterprise Value to EBITDA ratio.
62.65% of the companies in the same industry are more expensive than EMN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
EMN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EMN has a very decent profitability rating, which may justify a higher PE ratio.
EMN's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y17.06%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 3.69%.
Compared to an average industry Dividend Yield of 3.35, EMN pays a better dividend. On top of this EMN pays more dividend than 80.72% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
The dividend of EMN is nicely growing with an annual growth rate of 7.23%!
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.
The dividend of EMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.82%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EASTMAN CHEMICAL CO
NYSE:EMN (12/26/2024, 10:51:31 AM)
91.67
+0.1 (+0.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change1.29%
Ins Owners0.71%
Ins Owner Change-0.19%
Market Cap10.63B
Analysts73.33
Price Target117.98 (28.7%)
Short Float %1.79%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Dividend Growth(5Y)7.23%
DP42.82%
Div Incr Years14
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.1%
Min EPS beat(2)4.42%
Max EPS beat(2)5.79%
EPS beat(4)4
Avg EPS beat(4)5.34%
Min EPS beat(4)0.05%
Max EPS beat(4)11.11%
EPS beat(8)7
Avg EPS beat(8)2.93%
EPS beat(12)9
Avg EPS beat(12)1.78%
EPS beat(16)12
Avg EPS beat(16)2.47%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)2.62%
Revenue beat(4)1
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)4
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)1.15%
PT rev (1m)0.29%
PT rev (3m)2.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.16%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.45 | ||
| P/S | 1.14 | ||
| P/FCF | 17.59 | ||
| P/OCF | 8.86 | ||
| P/B | 1.88 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)7.33
EY8%
EPS(NY)8.77
Fwd EY9.57%
FCF(TTM)5.21
FCFY5.68%
OCF(TTM)10.34
OCFY11.28%
SpS80.61
BVpS48.78
TBVpS8
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROCE | 9.1% | ||
| ROIC | 7.46% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 13.06% | ||
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% | ||
| FCFM | 6.46% |
ROA(3y)5.68%
ROA(5y)4.95%
ROE(3y)15.6%
ROE(5y)13.49%
ROIC(3y)9.38%
ROIC(5y)8.16%
ROICexc(3y)9.78%
ROICexc(5y)8.47%
ROICexgc(3y)17.01%
ROICexgc(5y)15%
ROCE(3y)11.44%
ROCE(5y)9.99%
ROICexcg growth 3Y4.61%
ROICexcg growth 5Y-6%
ROICexc growth 3Y7.55%
ROICexc growth 5Y-4.15%
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%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.37 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 119.48% | ||
| Cap/Sales | 6.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.42% | ||
| Profit Quality | 68.25% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.56 |
F-Score8
WACC7.43%
ROIC/WACC1
Cap/Depr(3y)133.41%
Cap/Depr(5y)107.31%
Cap/Sales(3y)6.73%
Cap/Sales(5y)5.86%
Profit Quality(3y)76.5%
Profit Quality(5y)119.18%
High Growth Momentum
Growth
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS Q2Q%53.74%
EPS Next Y20.44%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EPS Next 5Y12.11%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Sales Q2Q%8.69%
Revenue Next Year2.26%
Revenue Next 2Y3.22%
Revenue Next 3Y3.68%
Revenue Next 5Y1.71%
EBIT growth 1Y11.93%
EBIT growth 3Y1.91%
EBIT growth 5Y-8.05%
EBIT Next Year60.41%
EBIT Next 3Y23.13%
EBIT Next 5Y15.43%
FCF growth 1Y96.1%
FCF growth 3Y-20.14%
FCF growth 5Y-11.66%
OCF growth 1Y26.48%
OCF growth 3Y-1.89%
OCF growth 5Y-2.29%