EASTMAN CHEMICAL CO (EMN)
US2774321002 - Common Stock
We assign a fundamental rating of 5 out of 10 to EMN. EMN was compared to 84 industry peers in the Chemicals industry. EMN has an average financial health and profitability rating. EMN is valued correctly, but it does not seem to be growing. 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 better Return On Assets (6.11%) than 76.19% of its industry peers.
The Return On Equity of EMN (16.38%) is better than 78.57% of its industry peers.
EMN has a Return On Invested Capital of 6.91%. This is in the better half of the industry: EMN outperforms 65.48% of its industry peers.
EMN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is in line with the industry average of 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 16.38% | ||
| ROIC | 6.91% |
ROA(3y)5.68%
ROA(5y)4.95%
ROE(3y)15.6%
ROE(5y)13.49%
ROIC(3y)9.38%
ROIC(5y)8.16%
1.3 Margins
With a decent Profit Margin value of 9.71%, EMN is doing good in the industry, outperforming 78.57% of the companies in the same industry.
EMN's Profit Margin has declined in the last couple of years.
EMN has a better Operating Margin (11.04%) than 60.71% of its industry peers.
In the last couple of years the Operating Margin of EMN has declined.
EMN has a Gross Margin of 22.38%. This is comparable to the rest of the industry: EMN outperforms 44.05% of its industry peers.
EMN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | 9.71% | ||
| GM | 22.38% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EMN is still creating some value.
EMN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EMN has less shares outstanding
EMN has a better debt/assets ratio than last year.
2.2 Solvency
EMN has an Altman-Z score of 2.58. 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 2.58, EMN is doing good in the industry, outperforming 69.05% of the companies in the same industry.
EMN has a debt to FCF ratio of 8.87. This is a slightly negative value and a sign of low solvency as EMN would need 8.87 years to pay back of all of its debts.
EMN has a Debt to FCF ratio (8.87) which is comparable to the rest of the industry.
EMN has a Debt/Equity ratio of 0.79. This is a neutral value indicating EMN is somewhat dependend on debt financing.
EMN has a Debt to Equity ratio of 0.79. This is comparable to the rest of the industry: EMN outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.87 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.89
WACC7.74%
2.3 Liquidity
EMN has a Current Ratio of 1.35. 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 1.35, EMN is doing worse than 80.95% of the companies in the same industry.
EMN has a Quick Ratio of 1.35. 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 0.70, EMN is not doing good in the industry: 86.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for EMN have decreased strongly by -18.26% in the last year.
The Earnings Per Share has been decreasing by -4.79% on average over the past years.
The Revenue for EMN has decreased by -12.95% in the past year. This is quite bad
The Revenue has been decreasing by -1.93% on average over the past years.
EPS 1Y (TTM)-18.26%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS growth Q2Q47.19%
Revenue 1Y (TTM)-12.95%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Revenue growth Q2Q-7%
3.2 Future
The Earnings Per Share is expected to grow by 15.30% on average over the next years. This is quite good.
Based on estimates for the next years, EMN will show a small growth in Revenue. The Revenue will grow by 1.38% on average per year.
EPS Next Y21.1%
EPS Next 2Y18.82%
EPS Next 3Y16.38%
EPS Next 5Y15.3%
Revenue Next Year2.31%
Revenue Next 2Y3.68%
Revenue Next 3Y4.15%
Revenue Next 5Y1.38%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.00, the valuation of EMN can be described as correct.
EMN's Price/Earnings ratio is a bit cheaper when compared to the industry. EMN is cheaper than 67.86% of the companies in the same industry.
EMN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.83.
EMN is valuated correctly with a Price/Forward Earnings ratio of 12.38.
Based on the Price/Forward Earnings ratio, EMN is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, EMN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
67.86% of the companies in the same industry are more expensive than EMN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.67 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
EMN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EMN's earnings are expected to grow with 16.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y18.82%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 3.24%.
Compared to an average industry Dividend Yield of 3.21, EMN pays a better dividend. On top of this EMN pays more dividend than 82.14% of the companies listed in the same industry.
EMN's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of EMN is nicely growing with an annual growth rate of 7.23%!
EMN has paid a dividend for at least 10 years, which is a reliable track record.
EMN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.23%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
42.06% 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 more than its dividend. This makes the dividend growth sustainable.
DP42.06%
EPS Next 2Y18.82%
EPS Next 3Y16.38%
EASTMAN CHEMICAL CO
NYSE:EMN (4/17/2024, 7:04:00 PM)
Premarket: 96.1 +0.13 (+0.14%)95.97
-0.43 (-0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 12.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 16.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.04% | ||
| PM (TTM) | 9.71% | ||
| GM | 22.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.26%
EPS 3Y1.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.95%
Revenue growth 3Y2.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y