EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
NYSE:EMN - US2774321002 - Common Stock
69.44 USD
+3.43 (+5.2%)
69.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 84 industry peers in the Chemicals industry. While EMN has a great profitability rating, there are quite some concerns on its financial health. EMN is cheap, but on the other hand it scores bad on growth. EMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMN had positive earnings in the past year.
EMN had a positive operating cash flow in the past year.
Each year in the past 5 years EMN has been profitable.
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 82.14% of its industry peers.
EMN has a better Return On Equity (14.26%) than 85.71% of its industry peers.
EMN has a Return On Invested Capital of 8.30%. This is in the better half of the industry: EMN outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMN is in line with the industry average of 6.53%.
| 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
The Profit Margin of EMN (8.96%) is better than 84.52% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
With a decent Operating Margin value of 14.14%, EMN is doing good in the industry, outperforming 73.81% of the companies in the same industry.
EMN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 24.04%, EMN perfoms like the industry average, outperforming 44.05% of the companies in the same 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
EMN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EMN has less shares outstanding
The number of shares outstanding for EMN has been reduced compared to 5 years ago.
The debt/assets ratio for EMN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.44 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.44, EMN is doing good in the industry, outperforming 70.24% 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.
EMN has a Debt to FCF ratio (12.63) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
EMN's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. EMN is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.99
WACC8.41%
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 worse Current ratio (1.68) than 61.90% of its industry peers.
A Quick Ratio of 0.78 indicates that EMN may have some problems paying its short term obligations.
EMN has a worse Quick ratio (0.78) than 80.95% 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.
The Earnings Per Share has been growing slightly by 2.08% on average over the past years.
Looking at the last year, EMN shows a small growth in Revenue. The Revenue has grown by 1.52% in the last year.
Measured over the past years, EMN shows a small growth in Revenue. The Revenue has been growing by 0.23% on average per year.
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
EMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.03% yearly.
EMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y-6.69%
EPS Next 2Y2.47%
EPS Next 3Y5.22%
EPS Next 5Y3.03%
Revenue Next Year-1.44%
Revenue Next 2Y0.87%
Revenue Next 3Y1.61%
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
The Price/Earnings ratio is 9.09, which indicates a very decent valuation of EMN.
Based on the Price/Earnings ratio, EMN is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, EMN is valued rather cheaply.
The Price/Forward Earnings ratio is 8.38, which indicates a very decent valuation of EMN.
Based on the Price/Forward Earnings ratio, EMN is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.82. EMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaper than 84.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.75 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The decent profitability rating of EMN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.38
EPS Next 2Y2.47%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, EMN is a good candidate for dividend investing.
EMN's Dividend Yield is rather good when compared to the industry average which is at 3.59. EMN pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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
45.67% of the earnings are spent on dividend by EMN. 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 2Y2.47%
EPS Next 3Y5.22%
69.44
+3.43 (+5.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.96%
Inst Owner Change-2.37%
Ins Owners0.66%
Ins Owner Change6.82%
Market Cap8.02B
Analysts78.26
Price Target81.97 (18.04%)
Short Float %2.33%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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)-17.41%
PT rev (3m)-18.05%
EPS NQ rev (1m)-34.11%
EPS NQ rev (3m)-46.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)-5.62%
Revenue NQ rev (3m)-9.03%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.86 | ||
| P/FCF | 19.75 | ||
| P/OCF | 8 | ||
| P/B | 1.37 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)7.64
EY11%
EPS(NY)8.29
Fwd EY11.93%
FCF(TTM)3.52
FCFY5.06%
OCF(TTM)8.68
OCFY12.5%
SpS80.43
BVpS50.54
TBVpS9.89
PEG (NY)N/A
PEG (5Y)4.38
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 | 2.44 |
F-Score6
WACC8.41%
ROIC/WACC0.99
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-6.69%
EPS Next 2Y2.47%
EPS Next 3Y5.22%
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-1.44%
Revenue Next 2Y0.87%
Revenue Next 3Y1.61%
Revenue Next 5Y-0.24%
EBIT growth 1Y26.86%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year29.18%
EBIT Next 3Y15.43%
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%