EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
63.6 USD
+0.9 (+1.44%)
Overall EMN gets a fundamental rating of 5 out of 10. We evaluated EMN against 82 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 bad growth rate and is valued cheaply. Finally EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EMN was profitable.
In the past year EMN had a positive cash flow from operations.
EMN had positive earnings in each of the past 5 years.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.47%, EMN belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
EMN has a better Return On Equity (14.26%) than 84.15% of its industry peers.
The Return On Invested Capital of EMN (8.30%) is better than 76.83% of its industry peers.
EMN had an Average Return On Invested Capital over the past 3 years of 8.36%. This is above the industry average of 6.30%.
| 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 84.15% 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 73.17% 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.
EMN has a Gross Margin of 24.04%. This is comparable to the rest of the industry: EMN outperforms 43.90% 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 | 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 just above the Cost of Capital (WACC), so EMN is still 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
An Altman-Z score of 2.42 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, EMN is in the better half of the industry, outperforming 68.29% 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.
With a Debt to FCF ratio value of 12.63, EMN perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
EMN has a Debt/Equity ratio of 0.88. This is a neutral value indicating EMN is somewhat dependend on debt financing.
EMN has a Debt to Equity ratio of 0.88. This is comparable to the rest of the industry: EMN outperforms 40.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.04
WACC7.97%
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.
Looking at the Current ratio, with a value of 1.68, EMN is doing worse than 63.41% of the companies in the same industry.
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 82.93% 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.
EMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.08% yearly.
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
The Earnings Per Share is expected to grow by 3.03% on average over the next years.
EMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y-26.1%
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
EPS Next 5Y3.03%
Revenue Next Year-4.37%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.36%
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
The Price/Earnings ratio is 8.32, which indicates a very decent valuation of EMN.
EMN's Price/Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 89.02% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMN to the average of the S&P500 Index (26.89), we can say EMN is valued rather cheaply.
A Price/Forward Earnings ratio of 9.30 indicates a reasonable valuation of EMN.
89.02% of the companies in the same industry are more expensive than EMN, based on the Price/Forward Earnings ratio.
EMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaper than 86.59% of the companies in the same industry.
EMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EMN is cheaper than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.99 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
The decent profitability rating of EMN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.01
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.26%, which is a nice return.
Compared to an average industry Dividend Yield of 3.69, EMN pays a better dividend. On top of this EMN pays more dividend than 85.37% of the companies listed in the same industry.
EMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| 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 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
EMN pays out 45.67% of its income as dividend. 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.
DP45.67%
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
NYSE:EMN (10/27/2025, 12:56:33 PM)
63.6
+0.9 (+1.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change0.73%
Ins Owners0.69%
Ins Owner Change2.37%
Market Cap7.30B
Revenue(TTM)9.29B
Net Income(TTM)832.00M
Analysts76.52
Price Target78.32 (23.14%)
Short Float %3.56%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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)0.77%
PT rev (3m)-19.92%
EPS NQ rev (1m)-5.48%
EPS NQ rev (3m)-39.03%
EPS NY rev (1m)-2.49%
EPS NY rev (3m)-20.8%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-6.81%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 9.3 | ||
| P/S | 0.79 | ||
| P/FCF | 17.99 | ||
| P/OCF | 7.29 | ||
| P/B | 1.25 | ||
| P/tB | 6.4 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)7.64
EY12.01%
EPS(NY)6.84
Fwd EY10.75%
FCF(TTM)3.54
FCFY5.56%
OCF(TTM)8.73
OCFY13.72%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.01
Graham Number93.46
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%
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-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 | 2.42 |
F-Score6
WACC7.97%
ROIC/WACC1.04
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-26.1%
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
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-4.37%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.36%
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%
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 8.32 and the Price/Book (PB) ratio is 1.25.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.