EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
61.57 USD
+0.58 (+0.95%)
61.57 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 81 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 bad growth rate and is valued cheaply. 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.
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 has a better Return On Assets (4.67%) than 77.78% of its industry peers.
EMN has a better Return On Equity (12.11%) than 82.72% 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 72.84% of the companies in the same industry.
EMN had an Average Return On Invested Capital over the past 3 years of 8.36%. This is above the industry average of 6.15%.
| 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 better Profit Margin (7.75%) than 75.31% of its industry peers.
EMN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.92%, EMN is doing good in the industry, outperforming 69.14% of the companies in the same industry.
EMN's Operating Margin has been stable in the last couple of years.
EMN has a Gross Margin of 22.85%. This is in the lower half of the industry: EMN underperforms 60.49% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMN is creating some value.
Compared to 1 year ago, EMN has less shares outstanding
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
EMN has an Altman-Z score of 2.39. 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.
Looking at the Altman-Z score, with a value of 2.39, EMN is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of EMN is 12.85, which is on the high side as it means it would take EMN, 12.85 years of fcf income to pay off all of its debts.
EMN has a Debt to FCF ratio (12.85) which is in line with its industry peers.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
EMN has a Debt to Equity ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.92
WACC8.09%
2.3 Liquidity
EMN has a Current Ratio of 1.76. 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 1.76, EMN is doing worse than 60.49% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that EMN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, EMN is doing worse than 75.31% of the companies in the same industry.
| 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.
The Revenue has decreased by -3.42% in the past 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
Based on estimates for the next years, EMN will show a small growth in Earnings Per Share. The EPS will grow by 2.78% on average per year.
The Revenue is expected to decrease by -0.52% on average over the next years.
EPS Next Y-26.17%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
EPS Next 5Y2.78%
Revenue Next Year-4.41%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.36%
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
With a Price/Earnings ratio of 9.44, the valuation of EMN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 86.42% of the companies listed in the same industry.
EMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.37.
Based on the Price/Forward Earnings ratio of 9.05, the valuation of EMN can be described as reasonable.
Based on the Price/Forward Earnings ratio, EMN is valued cheaper than 85.19% of the companies in the same industry.
EMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
EMN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.55
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.42%, which is a nice return.
Compared to an average industry Dividend Yield of 3.88, EMN pays a better dividend. On top of this EMN pays more dividend than 87.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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-7.16%
EPS Next 3Y0.15%
61.57
+0.58 (+0.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change-3.4%
Ins Owners0.69%
Ins Owner Change1.92%
Market Cap7.02B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target74.18 (20.48%)
Short Float %3.64%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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)-5.29%
PT rev (3m)-6.97%
EPS NQ rev (1m)-19.37%
EPS NQ rev (3m)-32.71%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-4.64%
Revenue NQ rev (1m)-4.29%
Revenue NQ rev (3m)-5.93%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.78 | ||
| P/FCF | 17.78 | ||
| P/OCF | 6.97 | ||
| P/B | 1.22 | ||
| P/tB | 6.4 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)6.52
EY10.59%
EPS(NY)6.8
Fwd EY11.05%
FCF(TTM)3.46
FCFY5.62%
OCF(TTM)8.84
OCFY14.35%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.55
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 | 2.39 |
F-Score5
WACC8.09%
ROIC/WACC0.92
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-26.17%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
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-4.41%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.52%
EBIT growth 1Y2.73%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year25.43%
EBIT Next 3Y14.32%
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 7 / 10 to EASTMAN CHEMICAL CO (EMN). This can be considered as Undervalued.
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 9.44 and the Price/Book (PB) ratio is 1.22.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.