EASTMAN CHEMICAL CO (EMN)
US2774321002 - Common Stock
Taking everything into account, EMN scores 4 out of 10 in our fundamental rating. EMN was compared to 85 industry peers in the Chemicals industry. There are concerns on the financial health of EMN while its profitability can be described as average. EMN is valued correctly, but it does not seem to be growing.
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.
In the past 5 years EMN has always been profitable.
Each year in the past 5 years EMN had a positive operating cash flow.
1.2 Ratios
EMN has a Return On Assets (4.01%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 10.93%, EMN is in line with its industry, outperforming 58.33% of the companies in the same industry.
EMN has a Return On Invested Capital of 6.62%. This is comparable to the rest of the industry: EMN outperforms 54.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMN is in line with the industry average of 7.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 10.93% | ||
| ROIC | 6.62% |
ROA(3y)4.63%
ROA(5y)5.08%
ROE(3y)12.78%
ROE(5y)13.94%
ROIC(3y)8.81%
ROIC(5y)8.42%
1.3 Margins
Looking at the Profit Margin, with a value of 6.24%, EMN is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
EMN's Profit Margin has declined in the last couple of years.
EMN has a Operating Margin (10.81%) which is in line with its industry peers.
EMN's Operating Margin has declined in the last couple of years.
EMN has a Gross Margin (21.04%) 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 | 10.81% | ||
| PM (TTM) | 6.24% | ||
| GM | 21.04% |
OM growth 3Y-4.15%
OM growth 5Y-5.98%
PM growth 3Y-2.89%
PM growth 5Y-12.36%
GM growth 3Y-5.71%
GM growth 5Y-3.98%
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
EMN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EMN has a worse debt to assets ratio.
2.2 Solvency
EMN has an Altman-Z score of 2.49. 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.
EMN has a Altman-Z score of 2.49. This is in the better half of the industry: EMN outperforms 61.90% of its industry peers.
The Debt to FCF ratio of EMN is 10.03, which is on the high side as it means it would take EMN, 10.03 years of fcf income to pay off all of its debts.
EMN has a Debt to FCF ratio (10.03) which is comparable to the rest of the industry.
EMN has a Debt/Equity ratio of 0.93. This is a neutral value indicating EMN is somewhat dependend on debt financing.
The Debt to Equity ratio of EMN (0.93) is worse than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.81
WACC8.17%
2.3 Liquidity
EMN has a Current Ratio of 1.36. 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 1.36, EMN is doing worse than 84.52% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that EMN may have some problems paying its short term obligations.
EMN has a Quick ratio of 0.71. This is amonst the worse of the industry: EMN underperforms 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
EMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.66%.
The Earnings Per Share has been growing slightly by 0.55% on average over the past years.
Looking at the last year, EMN shows a very negative growth in Revenue. The Revenue has decreased by -13.99% in the last year.
Measured over the past years, EMN shows a small growth in Revenue. The Revenue has been growing by 2.07% on average per year.
EPS 1Y (TTM)-31.66%
EPS 3Y3.22%
EPS 5Y0.55%
EPS growth Q2Q-28.29%
Revenue 1Y (TTM)-13.99%
Revenue growth 3Y4.49%
Revenue growth 5Y2.07%
Revenue growth Q2Q-16.32%
3.2 Future
EMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.64% yearly.
The Revenue is expected to decrease by -1.74% on average over the next years.
EPS Next Y-17.59%
EPS Next 2Y0.95%
EPS Next 3Y5.3%
EPS Next 5Y7.64%
Revenue Next Year-13.3%
Revenue Next 2Y-5.2%
Revenue Next 3Y-1.75%
Revenue Next 5Y-1.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.19, EMN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 64.29% of the companies listed in the same industry.
EMN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.97.
EMN is valuated reasonably with a Price/Forward Earnings ratio of 10.63.
Based on the Price/Forward Earnings ratio, EMN is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.05, EMN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued a bit cheaper than 64.29% of the companies in the same industry.
61.90% 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 | 19.35 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)26.03
EPS Next 2Y0.95%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 3.81%.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.90. EMN pays more dividend than 82.14% of the companies in the same industry.
EMN's Dividend Yield is a higher than the S&P500 average which is at 2.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of EMN is nicely growing with an annual growth rate of 8.48%!
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)8.48%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
63.76% of the earnings are spent on dividend by EMN. This is not a sustainable payout ratio.
The dividend of EMN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP63.76%
EPS Next 2Y0.95%
EPS Next 3Y5.3%
EASTMAN CHEMICAL CO
NYSE:EMN (12/8/2023, 7:04:00 PM)
After market: 84.85 0 (0%)84.85
-0.22 (-0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 14.19 | ||
| Fwd PE | 10.63 | ||
| 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)N/A
PEG (5Y)26.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 10.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.81% | ||
| PM (TTM) | 6.24% | ||
| GM | 21.04% | ||
| 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| 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)
Growth
EPS 1Y (TTM)-31.66%
EPS 3Y3.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.99%
Revenue growth 3Y4.49%
Revenue growth 5Y
Revenue growth 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