US2774321002 - Common Stock

We assign a fundamental rating of **5** out of 10 to **EMN**. **EMN** was compared to 83 industry peers in the **Chemicals** industry. **EMN** has only an average score on both its financial health and profitability. **EMN** has a valuation in line with the averages, but it does not seem to be growing. **EMN** also has an excellent dividend rating.

In the past 5 years **EMN** has always been profitable.

Looking at the **Return On Assets**, with a value of **6.27%**, **EMN** is in the better half of the industry, outperforming **79.52%** of the companies in the same industry.

With an excellent **Return On Equity** value of **16.70%**, **EMN** belongs to the best of the industry, outperforming **81.93%** of the companies in the same industry.

With a decent **Return On Invested Capital** value of **6.89%**, **EMN** is doing good in the industry, outperforming **66.27%** of the companies in the same industry.

The **Average Return On Invested Capital** over the past 3 years for **EMN** is above the industry average of **6.65%**.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 6.27% | ||

ROE | 16.7% | ||

ROIC | 6.89% |

ROA(3y)5.68%

ROA(5y)4.95%

ROE(3y)15.6%

ROE(5y)13.49%

ROIC(3y)9.38%

ROIC(5y)8.16%

In the last couple of years the **Profit Margin** of **EMN** has declined.

In the last couple of years the **Operating Margin** of **EMN** has declined.

The **Gross Margin** of **EMN** (**22.66%**) is comparable to the rest of the industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 11.2% | ||

PM (TTM) | 10.16% | ||

GM | 22.66% |

OM growth 3Y-0.89%

OM growth 5Y-6.24%

PM growth 3Y19.83%

PM growth 5Y-1.82%

GM growth 3Y-1.35%

GM growth 5Y-1.73%

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so **EMN** is still creating some value.

The number of shares outstanding for **EMN** has been reduced compared to 1 year ago.

The Debt to FCF ratio of **EMN** is **9.71**, which is on the high side as it means it would take **EMN**, **9.71** years of fcf income to pay off all of its debts.

The **Debt to FCF ratio** of **EMN** (**9.71**) is comparable to the rest of the industry.

A Debt/Equity ratio of **0.78** indicates that **EMN** is somewhat dependend on debt financing.

Looking at the **Debt to Equity ratio**, with a value of **0.78**, **EMN** is in line with its industry, outperforming **44.58%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.78 | ||

Debt/FCF | 9.71 | ||

Altman-Z | 2.58 |

ROIC/WACC0.94

WACC7.3%

A Current Ratio of **1.39** indicates that **EMN** should not have too much problems paying its short term obligations.

A Quick Ratio of **0.71** indicates that **EMN** may have some problems paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.39 | ||

Quick Ratio | 0.71 |

The earnings per share for **EMN** have decreased strongly by **-13.78%** in the last year.

Measured over the past years, **EMN** shows a decrease in **Earnings Per Share**. The EPS has been decreasing by **-4.79%** on average per year.

The **Revenue** has been decreasing by **-1.93%** on average over the past years.

EPS 1Y (TTM)-13.78%

EPS 3Y1.39%

EPS 5Y-4.79%

EPS Q2Q%-1.23%

Revenue 1Y (TTM)-11.38%

Revenue growth 3Y2.82%

Revenue growth 5Y-1.93%

Sales Q2Q%-4.23%

The **Revenue** is expected to grow by **1.69%** on average over the next years.

EPS Next Y22.01%

EPS Next 2Y19.25%

EPS Next 3Y17.09%

EPS Next 5Y12.09%

Revenue Next Year2.2%

Revenue Next 2Y3.64%

Revenue Next 3Y4.14%

Revenue Next 5Y1.69%

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 accelerating.

When comparing the **Price/Earnings** ratio of **EMN** to the average of the S&P500 Index (**29.08**), we can say **EMN** is valued slightly cheaper.

Based on the **Price/Forward Earnings** ratio of **10.65**, the valuation of **EMN** can be described as reasonable.

75.90% of the companies in the same industry are more expensive than **EMN**, based on the **Price/Forward Earnings** ratio.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 15.19 | ||

Fwd PE | 10.65 |

Based on the **Enterprise Value to EBITDA** ratio, **EMN** is valued a bit cheaper than the industry average as 66.27% of the companies are valued more expensively.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 21.8 | ||

EV/EBITDA | 10.66 |

The decent profitability rating of **EMN** may justify a higher PE ratio.

A more expensive valuation may be justified as **EMN**'s earnings are expected to grow with **17.09%** in the coming years.

PEG (NY)0.69

PEG (5Y)N/A

EPS Next 2Y19.25%

EPS Next 3Y17.09%

Compared to an average S&P500 **Dividend Yield** of **2.29**, **EMN** pays a bit more dividend than the S&P500 average.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 3.26% |

On average, the dividend of **EMN** grows each year by **7.23%**, which is quite nice.

Dividend Growth(5Y)7.23%

Div Incr Years14

Div Non Decr Years29

DP40.76%

EPS Next 2Y19.25%

EPS Next 3Y17.09%

**EASTMAN CHEMICAL CO**

NYSE:EMN (7/23/2024, 11:52:12 AM)

**96.92**

**-0.39 (-0.4%) **

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryChemicals

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

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Market Cap11.40B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 3.26% |

Dividend Growth(5Y)

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Surprises & Revisions

EPS beat(2)

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Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 15.19 | ||

Fwd PE | 10.65 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

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EPS(NY)

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PEG (NY)0.69

PEG (5Y)N/A

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 6.27% | ||

ROE | 16.7% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 11.2% | ||

PM (TTM) | 10.16% | ||

GM | 22.66% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

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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 Turnover0.62

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.78 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.39 | ||

Quick Ratio | 0.71 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

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Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)-13.78%

EPS 3Y1.39%

EPS 5Y

EPS Q2Q%

EPS Next Y22.01%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-11.38%

Revenue growth 3Y2.82%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

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EBIT Next 5Y

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