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EMN

Eastman Chemical NYSE:EMN Stock Report

Last Price

US$72.69

Market Cap

US$8.9b

7D

-8.1%

1Y

-28.9%

Updated

24 Sep, 2022

Data

Company Financials +
EMN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends5/6

EMN Stock Overview

Eastman Chemical Company operates as a specialty materials company in the United States and internationally.

Eastman Chemical Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Eastman Chemical
Historical stock prices
Current Share PriceUS$72.69
52 Week HighUS$129.48
52 Week LowUS$70.64
Beta1.44
1 Month Change-26.58%
3 Month Change-21.37%
1 Year Change-28.88%
3 Year Change-0.82%
5 Year Change-19.67%
Change since IPO221.28%

Recent News & Updates

Sep 20

Eastman to provide Ethicon with medical-grade materials for product packaging

Eastman (NYSE:EMN) announced on Tuesday an agreement with Ethicon to provide the latter with medical-grade materials for its medical device sterile-barrier packaging. As part of the deal, Ethicon, a Johnson & Johnson MedTech firm, will source Eastar Renew 6763 copolyester, becoming the first healthcare company to use medical-grade Eastman Renew materials in its product packaging.

Sep 15
Here's Why Eastman Chemical (NYSE:EMN) Can Manage Its Debt Responsibly

Here's Why Eastman Chemical (NYSE:EMN) Can Manage Its Debt Responsibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Sep 13

Eastman Chemical slides as Q3 earnings outlook falls short

Eastman Chemical (NYSE:EMN) shares dropped over 7% on Tuesday after the firm guided towards lower-than-expected third-quarter financial results. The Kingsport, Tennessee-based firm expects adjusted EPS of ~$2.00 (consensus: $2.59) for the quarter, with CEO Mark Costa attributing this to higher costs and slowdown in demand. Previous expectations were for solid growth compared to third-quarter 2021 adjusted EPS of $2.46. Demand slowed more than expected in August and September, particularly in the consumer durables and building and construction end markets and the European and Asian regions. "Logistics were challenged by an acceleration of marine logistics issues on the U.S. East Coast, that particularly impacted high-value specialty products in Advanced Materials bound for other regions. Operational issues have also impacted volume and product mix, as recovery of our polymer lines from an electricity outage in July at our Kingsport facility took longer than expected," Costa added. In response to these accelerating challenges, the company is raising prices to offset higher costs and has taken measures to control costs.

Shareholder Returns

EMNUS ChemicalsUS Market
7D-8.1%-5.6%-5.2%
1Y-28.9%-14.9%-23.1%

Return vs Industry: EMN underperformed the US Chemicals industry which returned -14.9% over the past year.

Return vs Market: EMN underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is EMN's price volatile compared to industry and market?
EMN volatility
EMN Average Weekly Movement5.0%
Chemicals Industry Average Movement6.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: EMN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EMN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192014,000Mark Costahttps://www.eastman.com

Eastman Chemical Company operates as a specialty materials company in the United States and internationally. The company’s Additives & Functional Products segment offers hydrocarbon and rosin resins; organic acid-based solutions; amine derivative-based building blocks; metam-based soil fumigants, thiram and ziram based fungicides, and plant growth regulators; specialty coalescent, specialty and commodity solvents, paint additives, and specialty polymers; heat transfer and aviation fluids; insoluble sulfur and anti-degradant rubber additives; and performance resins. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets.

Eastman Chemical Fundamentals Summary

How do Eastman Chemical's earnings and revenue compare to its market cap?
EMN fundamental statistics
Market CapUS$8.93b
Earnings (TTM)US$1.22b
Revenue (TTM)US$10.91b

7.3x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMN income statement (TTM)
RevenueUS$10.91b
Cost of RevenueUS$8.47b
Gross ProfitUS$2.44b
Other ExpensesUS$1.22b
EarningsUS$1.22b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)9.93
Gross Margin22.37%
Net Profit Margin11.18%
Debt/Equity Ratio92.3%

How did EMN perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMN?

Other financial metrics that can be useful for relative valuation.

EMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA6x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does EMN's PE Ratio compare to its peers?

EMN PE Ratio vs Peers
The above table shows the PE ratio for EMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.5x
RPM RPM International
22.6x10.6%US$11.0b
CE Celanese
5x-11.9%US$9.9b
LTHM Livent
50.7x16.8%US$5.5b
AXTA Axalta Coating Systems
23.7x31.6%US$4.9b
EMN Eastman Chemical
7.3x5.8%US$8.9b

Price-To-Earnings vs Peers: EMN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (25.5x).


Price to Earnings Ratio vs Industry

How does EMN's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: EMN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US Chemicals industry average (14.2x)


Price to Earnings Ratio vs Fair Ratio

What is EMN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EMN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: EMN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).


Share Price vs Fair Value

What is the Fair Price of EMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMN ($72.69) is trading below our estimate of fair value ($148.55)

Significantly Below Fair Value: EMN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Eastman Chemical forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMN's forecast earnings growth (5.8% per year) is above the savings rate (1.9%).

Earnings vs Market: EMN's earnings (5.8% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: EMN's earnings are forecast to grow, but not significantly.

Revenue vs Market: EMN's revenue (0.09% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EMN's revenue (0.09% 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 (21.5%)


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Past Performance

How has Eastman Chemical performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMN has high quality earnings.

Growing Profit Margin: EMN's current net profit margins (11.2%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: EMN's earnings have declined by 14.9% per year over the past 5 years.

Accelerating Growth: EMN's earnings growth over the past year (280.1%) exceeds its 5-year average (-14.9% per year).

Earnings vs Industry: EMN earnings growth over the past year (280.1%) exceeded the Chemicals industry 21.1%.


Return on Equity

High ROE: EMN's Return on Equity (22.7%) is considered high.


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Financial Health

How is Eastman Chemical's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EMN's short term assets ($4.0B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: EMN's short term assets ($4.0B) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: EMN's net debt to equity ratio (83.7%) is considered high.

Reducing Debt: EMN's debt to equity ratio has reduced from 140.6% to 92.3% over the past 5 years.

Debt Coverage: EMN's debt is well covered by operating cash flow (24.8%).

Interest Coverage: EMN's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


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Dividend

What is Eastman Chemical current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EMN's dividend (4.18%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: EMN's dividend (4.18%) is low compared to the top 25% of dividend payers in the US market (4.57%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.7%), EMN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (60.5%), EMN's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Mark Costa (56 yo)

8.67yrs

Tenure

US$17,798,861

Compensation

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 ($USD17.80M) is above average for companies of similar size in the US market ($USD8.51M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EMN's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: EMN's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:EMN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 May 22SellUS$1,080,030Lucian BoldeaIndividual10,500US$102.86
25 Feb 22SellUS$586,798Mark CoxIndividual4,858US$120.79

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 58.88% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.91%
The Vanguard Group, Inc.
15,849,042$1.2b-1%0.03%
7.37%
J.P. Morgan Asset Management, Inc.
9,053,663$658.1m2.09%0.12%
7.26%
BlackRock, Inc.
8,916,079$648.1m-0.87%0.02%
4.59%
State Street Global Advisors, Inc.
5,639,828$410.0m-3.36%0.02%
2.82%
Putnam LLC
3,462,046$251.7m4.17%0.43%
2.07%
Geode Capital Management, LLC
2,546,109$185.1m0.86%0.02%
1.82%
Morgan Stanley, Investment Banking and Brokerage Investments
2,234,635$162.4m-12.27%0.03%
1.82%
Ninety One UK Limited
2,233,501$162.4m-20.45%0.27%
1.75%
LSV Asset Management
2,152,239$156.4m1.67%0.32%
1.52%
FMR LLC
1,871,823$136.1m4.21%0.01%
1.51%
Massachusetts Financial Services Company
1,851,250$134.6m-2.98%0.04%
1.49%
American Century Investment Management Inc
1,829,992$133.0m0.25%0.1%
1.48%
Dimensional Fund Advisors LP
1,820,032$132.3m-0.49%0.03%
1.21%
Northern Trust Global Investments
1,488,579$108.2m-1.75%0.02%
1.02%
BNY Mellon Asset Management
1,252,784$91.1m5.36%0.02%
1%
Norges Bank Investment Management
1,224,090$89.0m0%0.01%
0.97%
Eaton Vance Management
1,191,153$86.6m1.1%0.03%
0.84%
Charles Schwab Investment Management, Inc.
1,033,496$75.1m1.47%0.02%
0.81%
Invesco Capital Management LLC
994,808$72.3m-1.01%0.06%
0.8%
Columbia Management Investment Advisers, LLC
985,279$71.6m1.13%0.02%
0.8%
Eagle Asset Management, Inc.
982,760$71.4m-9.64%0.46%
0.78%
UBS Asset Management
956,708$69.5m-21.46%0.01%
0.75%
Legal & General Investment Management Limited
916,816$66.6m-0.8%0.02%
0.74%
Managed Account Advisors LLC
913,747$66.4m-1.18%0.02%
0.74%
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
910,580$66.2m3.66%0.03%

Company Information

Eastman Chemical Company's employee growth, exchange listings and data sources


Key Information

  • Name: Eastman Chemical Company
  • Ticker: EMN
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: US$8.927b
  • Shares outstanding: 122.81m
  • Website: https://www.eastman.com

Number of Employees


Location

  • Eastman Chemical Company
  • 200 South Wilcox Drive
  • Kingsport
  • Tennessee
  • 37662
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMNNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1993
EACDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1993
0IF3LSE (London Stock Exchange)YesCommon StockGBUSDDec 1993
EMN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1993
E1MN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.