EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
64.03 USD
-0.34 (-0.53%)
64.03 USD
0 (0%)
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. 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.
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 (5.47%) than 83.13% of its industry peers.
The Return On Equity of EMN (14.26%) is better than 84.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.30%, EMN is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EMN is in line with the industry average of 6.37%.
| 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
EMN's Profit Margin of 8.96% is amongst the best of the industry. EMN outperforms 84.34% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
Looking at the Operating Margin, with a value of 14.14%, EMN is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
In the last couple of years the Operating Margin of EMN has remained more or less at the same level.
The Gross Margin of EMN (24.04%) is comparable to the rest of the industry.
EMN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMN is creating some value.
EMN has less shares outstanding than it did 1 year ago.
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 2.43. 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 2.43, EMN is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
The Debt to FCF ratio of EMN is 12.63, which is on the high side as it means it would take EMN, 12.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EMN (12.63) is comparable to the rest of the industry.
EMN has a Debt/Equity ratio of 0.88. This is a neutral value indicating EMN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, EMN perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.43 |
ROIC/WACC1
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.68 indicates that EMN should not have too much problems paying its short term obligations.
EMN has a Current ratio of 1.68. This is in the lower half of the industry: EMN underperforms 63.86% of its industry peers.
EMN has a Quick Ratio of 1.68. This is a bad value and indicates that EMN is not financially healthy enough and could expect problems in meeting its short term obligations.
EMN's Quick ratio of 0.78 is on the low side compared to the rest of the industry. EMN is outperformed by 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.
EMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.23% yearly.
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
Based on estimates for the next years, EMN will show a small growth in Earnings Per Share. The EPS will grow by 3.03% on average per year.
EMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y-24.21%
EPS Next 2Y-5.27%
EPS Next 3Y0.84%
EPS Next 5Y3.03%
Revenue Next Year-4.23%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.46%
Revenue Next 5Y-0.24%
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
With a Price/Earnings ratio of 8.38, 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 27.86, EMN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.04, the valuation of EMN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EMN is valued cheaper than 89.16% of the companies in the same industry.
EMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 9.04 |
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 71.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 6.43 |
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)4.04
EPS Next 2Y-5.27%
EPS Next 3Y0.84%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.16%, which is a nice return.
Compared to an average industry Dividend Yield of 3.61, EMN pays a better dividend. On top of this EMN pays more dividend than 86.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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 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-5.27%
EPS Next 3Y0.84%
64.03
-0.34 (-0.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change-2.34%
Ins Owners0.69%
Ins Owner Change2.09%
Market Cap7.35B
Analysts76.52
Price Target78.32 (22.32%)
Short Float %3.52%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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)-1.78%
PT rev (3m)-21.08%
EPS NQ rev (1m)-4.34%
EPS NQ rev (3m)-37.23%
EPS NY rev (1m)-2.1%
EPS NY rev (3m)-19.64%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-6.4%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 9.04 | ||
| P/S | 0.79 | ||
| P/FCF | 18.11 | ||
| P/OCF | 7.34 | ||
| P/B | 1.26 | ||
| P/tB | 6.44 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)7.64
EY11.93%
EPS(NY)7.08
Fwd EY11.06%
FCF(TTM)3.54
FCFY5.52%
OCF(TTM)8.73
OCFY13.63%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.04
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 | 2.43 |
F-Score6
WACC8.31%
ROIC/WACC1
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-24.21%
EPS Next 2Y-5.27%
EPS Next 3Y0.84%
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-4.23%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.46%
Revenue Next 5Y-0.24%
EBIT growth 1Y26.86%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year25.43%
EBIT Next 3Y14.32%
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%