EASTMAN CHEMICAL CO (EMN) Stock Fundamental Analysis
NYSE:EMN - New York Stock Exchange, Inc. - US2774321002 - Common Stock - Currency: USD
Taking everything into account, EMN scores 6 out of 10 in our fundamental rating. EMN was compared to 85 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 is not valued too expensively and it also shows a decent growth rate. 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.
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
EMN has a Return On Assets of 6.16%. This is amongst the best in the industry. EMN outperforms 85.88% of its industry peers.
With an excellent Return On Equity value of 15.70%, EMN belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
The Return On Invested Capital of EMN (8.81%) is better than 77.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMN is in line with the industry average of 7.01%.
The last Return On Invested Capital (8.81%) for EMN is above the 3 year average (8.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 15.7% | ||
| ROIC | 8.81% |
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 9.85%. This is amongst the best in the industry. EMN outperforms 85.88% of its industry peers.
In the last couple of years the Profit Margin of EMN has grown nicely.
EMN has a Operating Margin of 14.67%. This is in the better half of the industry: EMN outperforms 77.65% of its industry peers.
EMN's Operating Margin has been stable in the last couple of years.
EMN has a Gross Margin (24.83%) which is comparable to the rest of the industry.
EMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.67% | ||
| PM (TTM) | 9.85% | ||
| GM | 24.83% |
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.
Compared to 5 years ago, EMN has less shares outstanding
The debt/assets ratio for EMN has been reduced compared to a year ago.
2.2 Solvency
EMN has an Altman-Z score of 2.62. 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.
EMN has a Altman-Z score of 2.62. This is in the better half of the industry: EMN outperforms 74.12% of its industry peers.
EMN has a debt to FCF ratio of 8.73. This is a slightly negative value and a sign of low solvency as EMN would need 8.73 years to pay back of all of its debts.
EMN has a Debt to FCF ratio of 8.73. This is in the better half of the industry: EMN outperforms 64.71% of its industry peers.
EMN has a Debt/Equity ratio of 0.86. This is a neutral value indicating EMN is somewhat dependend on debt financing.
EMN's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. EMN is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.05
WACC8.38%
2.3 Liquidity
EMN has a Current Ratio of 1.72. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
EMN has a worse Current ratio (1.72) than 60.00% of its industry peers.
A Quick Ratio of 0.79 indicates that EMN may have some problems paying its short term obligations.
EMN has a worse Quick ratio (0.79) than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.37% over the past year.
EMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.08% yearly.
EMN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.79%.
The Revenue has been growing slightly by 0.23% on average over the past years.
EPS 1Y (TTM)28.37%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%18.63%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-0.87%
3.2 Future
EMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.20% yearly.
Based on estimates for the next years, EMN will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y-5.44%
EPS Next 2Y2.78%
EPS Next 3Y5.49%
EPS Next 5Y11.2%
Revenue Next Year-1.31%
Revenue Next 2Y1%
Revenue Next 3Y1.76%
Revenue Next 5Y2.79%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.83 indicates a reasonable valuation of EMN.
EMN's Price/Earnings ratio is rather cheap when compared to the industry. EMN is cheaper than 89.41% of the companies in the same industry.
EMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
The Price/Forward Earnings ratio is 9.66, which indicates a very decent valuation of EMN.
Based on the Price/Forward Earnings ratio, EMN is valued a bit cheaper than 75.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMN is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 74.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
EMN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.74
EPS Next 2Y2.78%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 4.08%, which is a nice return.
Compared to an average industry Dividend Yield of 3.74, EMN pays a better dividend. On top of this EMN pays more dividend than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, EMN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 Years14
Div Non Decr Years29
5.3 Sustainability
EMN pays out 41.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
EMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.21%
EPS Next 2Y2.78%
EPS Next 3Y5.49%
80.54
-0.82 (-1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.8%
Inst Owner Change-0.13%
Ins Owners0.72%
Ins Owner Change6.82%
Market Cap9.30B
Analysts76.8
Price Target100.03 (24.2%)
Short Float %2.79%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend3.26
Dividend Growth(5Y)5.58%
DP41.21%
Div Incr Years14
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.11%
Min EPS beat(2)-0.03%
Max EPS beat(2)18.25%
EPS beat(4)3
Avg EPS beat(4)7.11%
Min EPS beat(4)-0.03%
Max EPS beat(4)18.25%
EPS beat(8)7
Avg EPS beat(8)5.32%
EPS beat(12)10
Avg EPS beat(12)3.91%
EPS beat(16)11
Avg EPS beat(16)2.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-2.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)2.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.4%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)6
Avg Revenue beat(16)0.68%
PT rev (1m)-8.41%
PT rev (3m)-14.5%
EPS NQ rev (1m)-18.98%
EPS NQ rev (3m)-20.35%
EPS NY rev (1m)-11.06%
EPS NY rev (3m)-12.91%
Revenue NQ rev (1m)-4.47%
Revenue NQ rev (3m)-4.62%
Revenue NY rev (1m)-2.67%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.99 | ||
| P/FCF | 16.17 | ||
| P/OCF | 8.19 | ||
| P/B | 1.58 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)8.19
EY10.17%
EPS(NY)8.34
Fwd EY10.35%
FCF(TTM)4.98
FCFY6.18%
OCF(TTM)9.84
OCFY12.22%
SpS81.08
BVpS50.85
TBVpS10.46
PEG (NY)N/A
PEG (5Y)4.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 15.7% | ||
| ROCE | 10.81% | ||
| ROIC | 8.81% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 14.47% | ||
| OM | 14.67% | ||
| PM (TTM) | 9.85% | ||
| GM | 24.83% | ||
| FCFM | 6.14% |
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.73 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 110.43% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.39% | ||
| Profit Quality | 62.36% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.62 |
F-Score6
WACC8.38%
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)28.37%
EPS 3Y-3.79%
EPS 5Y2.08%
EPS Q2Q%18.63%
EPS Next Y-5.44%
EPS Next 2Y2.78%
EPS Next 3Y5.49%
EPS Next 5Y11.2%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y-3.61%
Revenue growth 5Y0.23%
Sales Q2Q%-0.87%
Revenue Next Year-1.31%
Revenue Next 2Y1%
Revenue Next 3Y1.76%
Revenue Next 5Y2.79%
EBIT growth 1Y34.61%
EBIT growth 3Y-10.58%
EBIT growth 5Y1.48%
EBIT Next Year42.05%
EBIT Next 3Y17.45%
EBIT Next 5Y18.8%
FCF growth 1Y112.18%
FCF growth 3Y-13.53%
FCF growth 5Y-8.61%
OCF growth 1Y18.83%
OCF growth 3Y-7.36%
OCF growth 5Y-3.07%