EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
USA - NYSE:EMN - US2774321002 - Common Stock
62.7 USD
-0.38 (-0.6%)
62.7 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.
EMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMN has a Return On Assets of 5.47%. This is amongst the best in the industry. EMN outperforms 83.13% of its industry peers.
EMN has a better Return On Equity (14.26%) than 84.34% 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 77.11% 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 has a Profit Margin of 8.96%. This is amongst the best in the industry. EMN outperforms 84.34% of its industry peers.
EMN's Profit Margin has improved in the last couple of years.
EMN has a Operating Margin of 14.14%. This is in the better half of the industry: EMN outperforms 73.49% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
The Gross Margin of EMN (24.04%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EMN is creating some value.
The number of shares outstanding for EMN has been reduced compared to 1 year ago.
EMN has less shares outstanding than it did 5 years ago.
EMN has a better debt/assets ratio than last year.
2.2 Solvency
EMN has an Altman-Z score of 2.42. 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.
With a decent Altman-Z score value of 2.42, EMN is doing good in the industry, outperforming 68.67% of the companies in the same industry.
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.
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.
The Debt to Equity ratio of EMN (0.88) is worse than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.05
WACC7.9%
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 63.86% 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.
With a Quick ratio value of 0.78, EMN is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
EMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.82%, which is quite good.
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
EMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.03% yearly.
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-26.1%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 8.21, the valuation of EMN can be described as very reasonable.
EMN's Price/Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 89.16% 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.
With a Price/Forward Earnings ratio of 9.17, the valuation of EMN can be described as very reasonable.
89.16% 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 | 8.21 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued cheaper than 86.75% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 72.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.73 | ||
| EV/EBITDA | 6.34 |
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)3.96
EPS Next 2Y-6.91%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.26%, EMN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.69, EMN pays a better dividend. On top of this EMN pays more dividend than 85.54% 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
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 2Y-6.91%
EPS Next 3Y0.39%
62.7
-0.38 (-0.6%)
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 Cap7.20B
Revenue(TTM)9.29B
Net Income(TTM)832.00M
Analysts76.52
Price Target78.32 (24.91%)
Short Float %3.57%
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 | 8.21 | ||
| Fwd PE | 9.17 | ||
| P/S | 0.78 | ||
| P/FCF | 17.73 | ||
| P/OCF | 7.19 | ||
| P/B | 1.23 | ||
| P/tB | 6.3 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)7.64
EY12.19%
EPS(NY)6.84
Fwd EY10.91%
FCF(TTM)3.54
FCFY5.64%
OCF(TTM)8.73
OCFY13.92%
SpS80.87
BVpS50.81
TBVpS9.95
PEG (NY)N/A
PEG (5Y)3.96
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
WACC7.9%
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)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 8.21 and the Price/Book (PB) ratio is 1.23.
What is the financial health of EASTMAN CHEMICAL CO (EMN) stock?
The financial health rating of EASTMAN CHEMICAL CO (EMN) is 4 / 10.