EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
61.25 USD
+1.61 (+2.7%)
61.25 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 82 industry peers in the Chemicals industry. While EMN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EMN has a bad growth rate and is valued cheaply. 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.
In the past 5 years EMN has always been profitable.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EMN (5.47%) is better than 82.93% of its industry peers.
EMN has a Return On Equity of 14.26%. This is amongst the best in the industry. EMN outperforms 84.15% 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 76.83% 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 6.23%.
| 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
Looking at the Profit Margin, with a value of 8.96%, EMN belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
In the last couple of years the Profit Margin of EMN has grown nicely.
EMN has a better Operating Margin (14.14%) than 73.17% of its industry peers.
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 43.90% 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
EMN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EMN has been reduced compared to 1 year ago.
The number of shares outstanding for EMN has been reduced compared to 5 years ago.
Compared to 1 year ago, EMN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.39 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMN has a better Altman-Z score (2.39) than 70.73% 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 58.54% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.05
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.68 indicates that EMN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.68, EMN is doing worse than 64.63% 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
EMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.05%.
EMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.08% yearly.
Looking at the last year, EMN shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
The Revenue has been growing slightly by 0.23% on average over the past years.
EPS 1Y (TTM)-11.05%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-49.56%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-10.63%
3.2 Future
The Earnings Per Share is expected to grow by 3.03% on average over the next years.
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-26.17%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
EPS Next 5Y3.03%
Revenue Next Year-4.41%
Revenue Next 2Y-1.22%
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.
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
A Price/Earnings ratio of 9.39 indicates a reasonable valuation of EMN.
EMN's Price/Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 86.59% of the companies in the same industry.
EMN is valuated cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.01, which indicates a very decent valuation of EMN.
85.37% 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 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
84.15% of the companies in the same industry are more expensive than EMN, based on the Enterprise Value to EBITDA ratio.
71.95% 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 | 17.32 | ||
| EV/EBITDA | 6.15 |
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)4.53
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.57%, EMN is a good candidate for dividend investing.
EMN's Dividend Yield is rather good when compared to the industry average which is at 4.06. EMN pays more dividend than 85.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.57% |
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.
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-7.16%
EPS Next 3Y0.15%
61.25
+1.61 (+2.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change-0.89%
Ins Owners0.69%
Ins Owner Change1.93%
Market Cap7.03B
Revenue(TTM)9.38B
Net Income(TTM)832.00M
Analysts76.52
Price Target76.04 (24.15%)
Short Float %3.56%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.57% |
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)-2.16%
PT rev (3m)-22.25%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-39.03%
EPS NY rev (1m)-2.49%
EPS NY rev (3m)-20.8%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-6.9%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.01 | ||
| P/S | 0.76 | ||
| P/FCF | 17.32 | ||
| P/OCF | 7.02 | ||
| P/B | 1.21 | ||
| P/tB | 6.16 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)6.52
EY10.64%
EPS(NY)6.8
Fwd EY11.1%
FCF(TTM)3.54
FCFY5.77%
OCF(TTM)8.73
OCFY14.25%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)4.53
Graham Number86.34
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 | 2.39 |
F-Score6
WACC7.91%
ROIC/WACC1.05
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 5Y3.03%
Revenue 1Y (TTM)1.87%
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-0.24%
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 9.39 and the Price/Book (PB) ratio is 1.21.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.