EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
67.16 USD
-0.77 (-1.13%)
68.0558 USD
+0.9 (+1.33%)
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 83 industry peers in the Chemicals industry. EMN scores excellent on profitability, but there are some minor concerns on its financial health. EMN is valued quite cheap, 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.
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's Return On Assets of 5.47% is amongst the best of the industry. EMN outperforms 83.13% of its industry peers.
With an excellent Return On Equity value of 14.26%, EMN belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
EMN has a Return On Invested Capital of 8.30%. This is in the better half of the industry: EMN outperforms 75.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMN is above the industry average of 6.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 14.26% | ||
| ROIC | 8.3% |
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
The Profit Margin of EMN (8.96%) is better than 84.34% of its industry peers.
EMN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.14%, EMN is doing good in the industry, outperforming 74.70% of the companies in the same industry.
EMN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 24.04%, EMN is in line with its industry, outperforming 44.58% 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 | 14.14% | ||
| PM (TTM) | 8.96% | ||
| GM | 24.04% |
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.
EMN has less shares outstanding than it did 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
An Altman-Z score of 2.45 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMN's Altman-Z score of 2.45 is fine compared to the rest of the industry. EMN outperforms 69.88% of its industry peers.
EMN has a debt to FCF ratio of 12.63. This is a negative value and a sign of low solvency as EMN would need 12.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.63, EMN perfoms like the industry average, outperforming 57.83% 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 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.99
WACC8.38%
2.3 Liquidity
EMN has a Current Ratio of 1.68. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EMN (1.68) is worse than 63.86% of its industry peers.
A Quick Ratio of 0.78 indicates that EMN may have some problems paying its short term obligations.
The Quick ratio of EMN (0.78) is worse than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.82% over the past year.
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.
The Revenue has been growing slightly by 1.52% in the past year.
The Revenue has been growing slightly by 0.23% on average over the past years.
EPS 1Y (TTM)16.82%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-3.22%
3.2 Future
EMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.03% yearly.
Based on estimates for the next years, EMN will show a decrease in Revenue. The Revenue will decrease by -0.24% on average per year.
EPS Next Y-22.58%
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
EPS Next 5Y3.03%
Revenue Next Year-4.05%
Revenue Next 2Y-0.86%
Revenue Next 3Y0.61%
Revenue Next 5Y-0.24%
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
With a Price/Earnings ratio of 8.79, the valuation of EMN can be described as very reasonable.
Based on the Price/Earnings ratio, EMN is valued cheaper than 87.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, EMN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.20, which indicates a very decent valuation of EMN.
90.36% of the companies in the same industry are more expensive than EMN, based on the Price/Forward Earnings ratio.
EMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
EMN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMN is cheaper than 86.75% 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 72.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
The decent profitability rating of EMN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.24
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, EMN is a good candidate for dividend investing.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.43. EMN pays more dividend than 86.75% of the companies in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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
EMN pays out 45.67% 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.
DP45.67%
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
67.16
-0.77 (-1.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.96%
Inst Owner Change-2.34%
Ins Owners0.66%
Ins Owner Change2.09%
Market Cap7.71B
Analysts78.26
Price Target77.72 (15.72%)
Short Float %2.54%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP45.67%
Div Incr Years15
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.17%
Min EPS beat(2)-8.32%
Max EPS beat(2)-0.03%
EPS beat(4)2
Avg EPS beat(4)3.58%
Min EPS beat(4)-8.32%
Max EPS beat(4)18.25%
EPS beat(8)6
Avg EPS beat(8)4.04%
EPS beat(12)9
Avg EPS beat(12)2.89%
EPS beat(16)10
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-1.84%
Revenue beat(16)5
Avg Revenue beat(16)0%
PT rev (1m)-5.18%
PT rev (3m)-20.65%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-36.29%
EPS NY rev (1m)-17.03%
EPS NY rev (3m)-18.13%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-6.31%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 9.2 | ||
| P/S | 0.83 | ||
| P/FCF | 19 | ||
| P/OCF | 7.7 | ||
| P/B | 1.32 | ||
| P/tB | 6.75 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)7.64
EY11.38%
EPS(NY)7.3
Fwd EY10.87%
FCF(TTM)3.54
FCFY5.26%
OCF(TTM)8.73
OCFY12.99%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 14.26% | ||
| ROCE | 10.23% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.58% | ||
| ROICexgc | 13.57% | ||
| OM | 14.14% | ||
| PM (TTM) | 8.96% | ||
| GM | 24.04% | ||
| FCFM | 4.37% |
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%
ROICexcg growth 3Y-10.23%
ROICexcg 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-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 117.09% | ||
| Cap/Sales | 6.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.99% | ||
| Profit Quality | 48.8% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.45 |
F-Score6
WACC8.38%
ROIC/WACC0.99
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)16.82%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-25.58%
EPS Next Y-22.58%
EPS Next 2Y-3.82%
EPS Next 3Y1.69%
EPS Next 5Y3.03%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-3.22%
Revenue Next Year-4.05%
Revenue Next 2Y-0.86%
Revenue Next 3Y0.61%
Revenue Next 5Y-0.24%
EBIT growth 1Y26.86%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year29.18%
EBIT Next 3Y15.43%
EBIT Next 5Y11.73%
FCF growth 1Y21.56%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y-10.62%
OCF growth 3Y-7.36%
OCF growth 5Y-3.07%