EASTMAN CHEMICAL CO (EMN)
US2774321002 - Common Stock
Taking everything into account, EMN scores 5 out of 10 in our fundamental rating. EMN was compared to 85 industry peers in the Chemicals industry. Both the profitability and the financial health of EMN get a neutral evaluation. Nothing too spectacular is happening here. EMN may be a bit undervalued, certainly considering the very reasonable score on growth 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.
EMN had positive earnings in each of the past 5 years.
In the past 5 years EMN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.88%, EMN belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
EMN has a better Return On Equity (15.65%) than 81.18% of its industry peers.
EMN's Return On Invested Capital of 7.46% is fine compared to the rest of the industry. EMN outperforms 74.12% of its industry peers.
EMN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is above the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROIC | 7.46% |
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 an excellent Profit Margin value of 9.47%, EMN belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
EMN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.15%, EMN is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
In the last couple of years the Operating Margin of EMN has declined.
EMN has a Gross Margin of 23.54%. This is comparable to the rest of the industry: EMN outperforms 45.88% of its industry peers.
EMN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% |
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.
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
An Altman-Z score of 2.64 indicates that EMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
EMN has a better Altman-Z score (2.64) than 76.47% of its industry peers.
EMN has a debt to FCF ratio of 8.37. This is a slightly negative value and a sign of low solvency as EMN would need 8.37 years to pay back of all of its debts.
EMN has a Debt to FCF ratio of 8.37. This is comparable to the rest of the industry: EMN outperforms 54.12% of its industry peers.
EMN has a Debt/Equity ratio of 0.81. This is a neutral value indicating EMN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, EMN perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.37 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.03
WACC7.25%
2.3 Liquidity
EMN has a Current Ratio of 1.52. This is a normal value and indicates that EMN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EMN (1.52) is worse than 70.59% of its industry peers.
EMN has a Quick Ratio of 1.52. 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: 87.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| 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 22.58%, which is quite impressive.
The Earnings Per Share has been decreasing by -4.79% on average over the past years.
Looking at the last year, EMN shows a decrease in Revenue. The Revenue has decreased by -0.34% in the last year.
Measured over the past years, EMN shows a decrease in Revenue. The Revenue has been decreasing by -1.93% on average per year.
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y-4.79%
EPS Q2Q%53.74%
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y-1.93%
Sales Q2Q%8.69%
3.2 Future
The Earnings Per Share is expected to grow by 12.09% on average over the next years. This is quite good.
EMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.69% yearly.
EPS Next Y20.44%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EPS Next 5Y12.09%
Revenue Next Year2.29%
Revenue Next 2Y3.28%
Revenue Next 3Y3.8%
Revenue Next 5Y1.69%
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
A Price/Earnings ratio of 13.79 indicates a correct valuation of EMN.
Based on the Price/Earnings ratio, EMN is valued a bit cheaper than 78.82% 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 29.48.
EMN is valuated reasonably with a Price/Forward Earnings ratio of 11.53.
80.00% of the companies in the same industry are more expensive than EMN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.95. EMN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMN indicates a somewhat cheap valuation: EMN is cheaper than 62.35% of the companies listed 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 63.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.4 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EMN has a very decent profitability rating, which may justify a higher PE ratio.
EMN's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y17.06%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
EMN has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, EMN pays a bit more dividend than its industry peers.
EMN's Dividend Yield is a higher than the S&P500 average which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
On average, the dividend of EMN grows each year by 7.23%, which is quite nice.
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)7.23%
Div Incr Years14
Div Non Decr Years29
5.3 Sustainability
42.82% 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.
DP42.82%
EPS Next 2Y17.06%
EPS Next 3Y15.6%
EASTMAN CHEMICAL CO
NYSE:EMN (12/6/2024, 8:04:00 PM)
After market: 101.07 0 (0%)101.07
-0.44 (-0.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.72B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.53 | ||
| 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)0.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 15.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.15% | ||
| PM (TTM) | 9.47% | ||
| GM | 23.54% | ||
| 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.78 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)22.58%
EPS 3Y1.39%
EPS 5Y
EPS Q2Q%
EPS Next Y20.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.34%
Revenue growth 3Y2.82%
Revenue growth 5Y
Sales 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