EASTMAN CHEMICAL CO (EMN)
US2774321002 - Common Stock
Taking everything into account, EMN scores 5 out of 10 in our fundamental rating. EMN was compared to 84 industry peers in the Chemicals industry. EMN has an average financial health and profitability rating. EMN has a valuation in line with the averages, but it does not seem to be growing. Finally EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMN had positive earnings in the past year.
EMN had a positive operating cash flow in the past year.
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
EMN has a Return On Assets of 5.91%. This is in the better half of the industry: EMN outperforms 79.76% of its industry peers.
Looking at the Return On Equity, with a value of 15.69%, EMN is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
EMN's Return On Invested Capital of 6.95% is fine compared to the rest of the industry. EMN outperforms 67.86% of its industry peers.
EMN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is above the industry average of 6.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 15.69% | ||
| ROIC | 6.95% |
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
The Profit Margin of EMN (9.65%) is better than 84.52% of its industry peers.
In the last couple of years the Profit Margin of EMN has declined.
The Operating Margin of EMN (11.32%) is better than 64.29% of its industry peers.
In the last couple of years the Operating Margin of EMN has declined.
EMN has a Gross Margin (22.73%) which 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 | 11.32% | ||
| PM (TTM) | 9.65% | ||
| GM | 22.73% |
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.
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 2.65. 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 (2.65) is better than 71.43% of its industry peers.
The Debt to FCF ratio of EMN is 8.31, which is on the high side as it means it would take EMN, 8.31 years of fcf income to pay off all of its debts.
EMN has a Debt to FCF ratio (8.31) which is in line with its industry peers.
A Debt/Equity ratio of 0.77 indicates that EMN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, EMN is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 8.31 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.93
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.40 indicates that EMN should not have too much problems paying its short term obligations.
The Current ratio of EMN (1.40) is worse than 79.76% of its industry peers.
EMN has a Quick Ratio of 1.40. This is a bad value and indicates that EMN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.71, EMN is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for EMN have decreased by -0.30% in the last year.
The Earnings Per Share has been decreasing by -4.79% on average over the past years.
EMN shows a decrease in Revenue. In the last year, the revenue decreased by -6.83%.
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)-0.3%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS Q2Q%8.04%
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Sales Q2Q%1.68%
3.2 Future
The Earnings Per Share is expected to grow by 12.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.69% on average over the next years.
EPS Next Y21.34%
EPS Next 2Y18.75%
EPS Next 3Y16.92%
EPS Next 5Y12.09%
Revenue Next Year1.35%
Revenue Next 2Y3.15%
Revenue Next 3Y3.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.34 indicates a correct valuation of EMN.
Based on the Price/Earnings ratio, EMN is valued a bit cheaper than the industry average as 72.62% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EMN to the average of the S&P500 Index (31.46), we can say EMN is valued slightly cheaper.
EMN is valuated reasonably with a Price/Forward Earnings ratio of 11.84.
Based on the Price/Forward Earnings ratio, EMN is valued a bit cheaper than the industry average as 70.24% of the companies are valued more expensively.
EMN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
EMN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMN is cheaper than 60.71% 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 60.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.62 | ||
| EV/EBITDA | 11.22 |
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.
EMN has a very decent profitability rating, which may justify a higher PE ratio.
EMN's earnings are expected to grow with 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y18.75%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, EMN has a reasonable but not impressive dividend return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 2.74. EMN pays more dividend than 83.33% of the companies in the same industry.
EMN's Dividend Yield is a higher than the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of EMN is nicely growing with an annual growth rate of 7.23%!
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)7.23%
Div Incr Years14
Div Non Decr Years29
5.3 Sustainability
42.81% 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 more than its dividend. This makes the dividend growth sustainable.
DP42.81%
EPS Next 2Y18.75%
EPS Next 3Y16.92%
EASTMAN CHEMICAL CO
NYSE:EMN (10/22/2024, 1:27:12 PM)
106.89
-0.93 (-0.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
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)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 11.84 | ||
| 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)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 15.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.32% | ||
| PM (TTM) | 9.65% | ||
| GM | 22.73% | ||
| 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.71 | ||
| 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)-0.3%
EPS 3Y1.39%
EPS 5Y
EPS Q2Q%
EPS Next Y21.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.83%
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