Eastman Chemical Company operates as a specialty materials company worldwide. More Details
+ 1 more risk
Adequate balance sheet with reasonable growth potential and pays a dividend.
Share Price & News
How has Eastman Chemical's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EMN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: EMN's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: EMN matched the US Chemicals industry which returned 22.2% over the past year.
Return vs Market: EMN underperformed the US Market which returned 33.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Eastman Chemical's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StDon't Buy Eastman Chemical Company (NYSE:EMN) For Its Next Dividend Without Doing These Checks
1 week ago | Simply Wall StThose who invested in Eastman Chemical (NYSE:EMN) five years ago are up 101%
1 month ago | Simply Wall StHave Insiders Sold Eastman Chemical Company (NYSE:EMN) Shares Recently?
Is Eastman Chemical undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EMN ($103.09) is trading below our estimate of fair value ($153.7)
Significantly Below Fair Value: EMN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EMN is poor value based on its PE Ratio (43.6x) compared to the US Chemicals industry average (22.4x).
PE vs Market: EMN is poor value based on its PE Ratio (43.6x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: EMN is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: EMN is good value based on its PB Ratio (2.4x) compared to the US Chemicals industry average (2.7x).
How is Eastman Chemical forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EMN's forecast earnings growth (37.6% per year) is above the savings rate (2%).
Earnings vs Market: EMN's earnings (37.6% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EMN's revenue (2.7% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: EMN's revenue (2.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EMN's Return on Equity is forecast to be high in 3 years time (20%)
How has Eastman Chemical performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EMN has a large one-off loss of $602.0M impacting its June 30 2021 financial results.
Growing Profit Margin: EMN's current net profit margins (3.4%) are lower than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: EMN's earnings have declined by 13.8% per year over the past 5 years.
Accelerating Growth: EMN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EMN had negative earnings growth (-44.4%) over the past year, making it difficult to compare to the Chemicals industry average (32.6%).
Return on Equity
High ROE: EMN's Return on Equity (5.5%) is considered low.
How is Eastman Chemical's financial position?
Financial Position Analysis
Short Term Liabilities: EMN's short term assets ($4.7B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: EMN's short term assets ($4.7B) do not cover its long term liabilities ($7.8B).
Debt to Equity History and Analysis
Debt Level: EMN's debt to equity ratio (92.4%) is considered high.
Reducing Debt: EMN's debt to equity ratio has reduced from 154.5% to 92.4% over the past 5 years.
Debt Coverage: EMN's debt is well covered by operating cash flow (26.7%).
Interest Coverage: EMN's interest payments on its debt are well covered by EBIT (6.1x coverage).
What is Eastman Chemical current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EMN's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: EMN's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: EMN's dividends per share have been stable in the past 10 years.
Growing Dividend: EMN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (115.4%), EMN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EMN's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Costa (55 yo)
Mr. Mark J. Costa has been the Chief Executive Officer of Eastman Chemical Co. since January 1, 2014. Mr. Costa had been an Executive Vice President of Specialty Polymers, Coatings & Adhesives at Eastman C...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD13.56M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: EMN's management team is seasoned and experienced (7.7 years average tenure).
Experienced Board: EMN's board of directors are considered experienced (5.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EMN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Eastman Chemical Company's company bio, employee growth, exchange listings and data sources
- Name: Eastman Chemical Company
- Ticker: EMN
- Exchange: NYSE
- Founded: 1920
- Industry: Diversified Chemicals
- Sector: Materials
- Market Cap: US$13.998b
- Shares outstanding: 135.78m
- Website: https://www.eastman.com
Number of Employees
- Eastman Chemical Company
- 200 South Wilcox Drive
- United States
Eastman Chemical Company operates as a specialty materials company worldwide. The company’s Additives & Functional Products segment offers hydrocarbon and rosin resins; organic acid-based solutions; amine...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:02|
|End of Day Share Price||2021/09/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.