EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
64.75 USD
+0.41 (+0.64%)
64.75 USD
0 (0%)
Taking everything into account, EMN scores 5 out of 10 in our fundamental rating. EMN was compared to 83 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 valuation in line with the averages, but on the other hand it scores bad on growth. 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.
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 78.31% of its industry peers.
EMN's Return On Equity of 12.11% is amongst the best of the industry. EMN outperforms 83.13% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for EMN is above the industry average of 6.10%.
| 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's Profit Margin of 7.75% is fine compared to the rest of the industry. EMN outperforms 75.90% of its industry peers.
EMN's Profit Margin has improved in the last couple of years.
EMN's Operating Margin of 12.92% is fine compared to the rest of the industry. EMN outperforms 68.67% of its industry peers.
In the last couple of years the Operating Margin of EMN has remained more or less at the same level.
EMN has a Gross Margin of 22.85%. This is in the lower half of the industry: EMN underperforms 60.24% 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
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
EMN has less shares outstanding than it did 5 years ago.
EMN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMN has a better Altman-Z score (2.41) than 71.08% 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.
EMN has a Debt to FCF ratio of 12.85. This is comparable to the rest of the industry: EMN outperforms 57.83% of 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.
EMN's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. EMN is outperformed by 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.68
WACC10.84%
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 in line with its industry peers.
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 74.70% 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%.
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.
Measured over the past years, EMN shows a small growth in Revenue. The Revenue has been growing by 0.23% on average per year.
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-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
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
Based on the Price/Earnings ratio of 9.93, the valuation of EMN can be described as reasonable.
Based on the Price/Earnings ratio, EMN is valued cheaper than 85.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMN to the average of the S&P500 Index (26.87), we can say EMN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.38, the valuation of EMN can be described as reasonable.
Based on the Price/Forward Earnings ratio, EMN is valued cheaply inside the industry as 83.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, EMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 73.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.7 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
EMN has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as EMN's earnings are expected to decrease with -3.28% in the coming years.
PEG (NY)N/A
PEG (5Y)4.79
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.26%, which is a nice return.
EMN's Dividend Yield is rather good when compared to the industry average which is at 2.47. EMN pays more dividend than 89.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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.
EMN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.51%
EPS Next 2Y-11.06%
EPS Next 3Y-3.28%
64.75
+0.41 (+0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.86%
Inst Owner Change0%
Ins Owners0.7%
Ins Owner Change1.92%
Market Cap7.39B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target74.78 (15.49%)
Short Float %4.47%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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)-4.52%
EPS NQ rev (1m)-5.54%
EPS NQ rev (3m)-33.92%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 10.38 | ||
| P/S | 0.82 | ||
| P/FCF | 18.7 | ||
| P/OCF | 7.33 | ||
| P/B | 1.28 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)6.52
EY10.07%
EPS(NY)6.24
Fwd EY9.64%
FCF(TTM)3.46
FCFY5.35%
OCF(TTM)8.84
OCFY13.65%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.79
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
WACC10.84%
ROIC/WACC0.68
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%.