EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMN - US2774321002 - Common Stock
60.99 USD
-0.96 (-1.55%)
60.99 USD
0 (0%)
Taking everything into account, EMN scores 5 out of 10 in our fundamental rating. EMN was compared to 81 industry peers in the Chemicals industry. While EMN has a great profitability rating, there are some minor concerns on its financial health. EMN is valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years EMN has been profitable.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
EMN has a better Return On Assets (4.67%) than 77.78% of its industry peers.
EMN has a Return On Equity of 12.11%. This is amongst the best in the industry. EMN outperforms 82.72% of its industry peers.
With a decent Return On Invested Capital value of 7.41%, EMN is doing good in the industry, outperforming 72.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EMN is above the industry average of 6.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 12.11% | ||
| ROIC | 7.41% |
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 has a better Profit Margin (7.75%) than 75.31% of its industry peers.
EMN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.92%, EMN is doing good in the industry, outperforming 69.14% 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's Gross Margin of 22.85% is on the low side compared to the rest of the industry. EMN is outperformed by 60.49% of its industry peers.
EMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.92% | ||
| PM (TTM) | 7.75% | ||
| GM | 22.85% |
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.
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.
EMN has a better debt/assets ratio than last year.
2.2 Solvency
EMN has an Altman-Z score of 2.39. 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.
The Altman-Z score of EMN (2.39) is better than 77.78% of its industry peers.
The Debt to FCF ratio of EMN is 12.85, which is on the high side as it means it would take EMN, 12.85 years of fcf income to pay off all of its debts.
EMN has a Debt to FCF ratio (12.85) which is in line with its industry peers.
A Debt/Equity ratio of 0.88 indicates that EMN is somewhat dependend on debt financing.
The Debt to Equity ratio of EMN (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.92
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.76 indicates that EMN should not have too much problems paying its short term obligations.
EMN's Current ratio of 1.76 is on the low side compared to the rest of the industry. EMN is outperformed by 60.49% of its industry peers.
A Quick Ratio of 0.86 indicates that EMN may have some problems paying its short term obligations.
EMN's Quick ratio of 0.86 is on the low side compared to the rest of the industry. EMN is outperformed by 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for EMN have decreased strongly by -11.05% in the last 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 decrease in Revenue. The Revenue has decreased by -3.42% in the last 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)-11.05%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%-49.56%
Revenue 1Y (TTM)-3.42%
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 2.78% on average over the next years.
EMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.52% yearly.
EPS Next Y-26.17%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
EPS Next 5Y2.78%
Revenue Next Year-4.41%
Revenue Next 2Y-1.22%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.52%
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
EMN is valuated reasonably with a Price/Earnings ratio of 9.35.
Compared to the rest of the industry, the Price/Earnings ratio of EMN indicates a rather cheap valuation: EMN is cheaper than 86.42% of the companies listed in the same industry.
EMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 8.97, the valuation of EMN can be described as reasonable.
EMN's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 85.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.22. EMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EMN is valued a bit cheaper than 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 6.71 |
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)4.51
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 5.42%, which is a nice return.
Compared to an average industry Dividend Yield of 3.88, EMN pays a better dividend. On top of this EMN pays more dividend than 87.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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 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 54.51% 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.
DP54.51%
EPS Next 2Y-7.16%
EPS Next 3Y0.15%
60.99
-0.96 (-1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners91.73%
Inst Owner Change-3.4%
Ins Owners0.69%
Ins Owner Change1.92%
Market Cap6.96B
Revenue(TTM)9.02B
Net Income(TTM)699.00M
Analysts76.52
Price Target74.18 (21.63%)
Short Float %3.64%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP54.51%
Div Incr Years15
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.68%
Min EPS beat(2)-8.32%
Max EPS beat(2)-3.04%
EPS beat(4)1
Avg EPS beat(4)1.72%
Min EPS beat(4)-8.32%
Max EPS beat(4)18.25%
EPS beat(8)5
Avg EPS beat(8)3.53%
EPS beat(12)8
Avg EPS beat(12)2.53%
EPS beat(16)10
Avg EPS beat(16)1.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-1.63%
Revenue beat(8)1
Avg Revenue beat(8)-1.17%
Revenue beat(12)1
Avg Revenue beat(12)-2.5%
Revenue beat(16)4
Avg Revenue beat(16)-0.44%
PT rev (1m)-5.29%
PT rev (3m)-6.97%
EPS NQ rev (1m)-19.37%
EPS NQ rev (3m)-32.71%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-4.64%
Revenue NQ rev (1m)-4.29%
Revenue NQ rev (3m)-5.93%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.97 | ||
| P/S | 0.77 | ||
| P/FCF | 17.61 | ||
| P/OCF | 6.9 | ||
| P/B | 1.21 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)6.52
EY10.69%
EPS(NY)6.8
Fwd EY11.15%
FCF(TTM)3.46
FCFY5.68%
OCF(TTM)8.84
OCFY14.49%
SpS79.11
BVpS50.59
TBVpS9.63
PEG (NY)N/A
PEG (5Y)4.51
Graham Number86.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 12.11% | ||
| ROCE | 9.09% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.7% | ||
| ROICexgc | 12.22% | ||
| OM | 12.92% | ||
| PM (TTM) | 7.75% | ||
| GM | 22.85% | ||
| FCFM | 4.38% |
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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.85 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 119.96% | ||
| Cap/Sales | 6.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.11% | ||
| Profit Quality | 56.51% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.39 |
F-Score5
WACC8.09%
ROIC/WACC0.92
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 5Y2.78%
Revenue 1Y (TTM)-3.42%
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-0.52%
EBIT growth 1Y2.73%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year25.43%
EBIT Next 3Y14.32%
EBIT Next 5Y11.73%
FCF growth 1Y-24.04%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y-26.9%
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 9.35 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.