NYSE:EMN

Stock Analysis Report

Executive Summary

Eastman Chemical Company operates as an advanced materials and specialty additives company worldwide.


Snowflake Analysis

Very undervalued 6 star dividend payer.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.9%

EMN

9.2%

US Chemicals

9.9%

US Market


1 Year Return

-38.8%

EMN

-31.2%

US Chemicals

-11.9%

US Market

Return vs Industry: EMN underperformed the US Chemicals industry which returned -31.2% over the past year.

Return vs Market: EMN underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

EMNIndustryMarket
7 Day13.9%9.2%9.9%
30 Day-25.6%-18.2%-15.0%
90 Day-40.7%-29.7%-21.5%
1 Year-36.2%-38.8%-21.6%-31.2%-10.0%-11.9%
3 Year-37.0%-42.5%-8.9%-26.4%12.3%5.1%
5 Year-21.3%-31.7%3.0%-19.5%32.5%18.1%

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

Valuation

Is Eastman Chemical undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMN ($46.47) is trading below our estimate of fair value ($105.91)

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


Price To Earnings Ratio

PE vs Industry: EMN is good value based on its PE Ratio (8.4x) compared to the Chemicals industry average (15x).

PE vs Market: EMN is good value based on its PE Ratio (8.4x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: EMN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: EMN is good value based on its PB Ratio (1.1x) compared to the US Chemicals industry average (1.3x).


Next Steps

Future Growth

How is Eastman Chemical forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMN's forecast earnings growth (9.9% per year) is above the savings rate (1.7%).

Earnings vs Market: EMN's earnings (9.9% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: EMN's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: EMN's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMN's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Eastman Chemical performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMN has high quality earnings.

Growing Profit Margin: EMN's current net profit margins (8.2%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: EMN's earnings have grown by 7.4% 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 (-29.7%) over the past year, making it difficult to compare to the Chemicals industry average (-7.2%).


Return on Equity

High ROE: EMN's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Eastman Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: EMN's short term assets ($3.3B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: EMN's short term assets ($3.3B) do not cover its long term liabilities ($8.2B).


Debt to Equity History and Analysis

Debt Level: EMN's debt to equity ratio (95.9%) is considered high.

Reducing Debt: EMN's debt to equity ratio has reduced from 210.8% to 95.9% over the past 5 years.

Debt Coverage: EMN's debt is well covered by operating cash flow (26%).

Interest Coverage: EMN's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: EMN has a high level of physical assets or inventory.

Debt Coverage by Assets: EMN's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

5.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMN's dividend (5.68%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: EMN's dividend (5.68%) is in the top 25% of dividend payers in the US market (5.49%)


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 reasonably low payout ratio (45.6%), EMN's dividend payments are 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 (36.6% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Mark Costa (53yo)

6.17s

Tenure

US$15,918,483

Compensation

Mr. Mark J. Costa has been an Executive Vice President of Specialty Polymers, Coatings & Adhesives at Eastman Chemical Co since July 2012., and its Chief Marketing Officer since August 2008. Mr. Costa has  ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD15.92M) is above average for companies of similar size in the US market ($USD7.34M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Costa
Chairman & CEO6.17yrsUS$15.92m0.22% $14.0m
Curtis Espeland
Executive Vice President0.083yrUS$5.62m0.091% $5.8m
Brad Lich
Executive VP & Chief Commercial Officer6.17yrsUS$4.40m0.043% $2.7m
Lucian Boldea
Executive Vice President of Chemical Intermediates3.67yrsUS$4.94m0.010% $658.7k
William McLain
CFO & Senior VP0.083yrno data0.010% $639.1k
Scott King
Chief Accounting Officer11.5yrsno data0.011% $665.6k
Stephen Crawford
Senior VP and Chief Technology & Sustainability Officer6.17yrsUS$3.54m0.026% $1.7m
Gregory Riddle
Vice President of Investor Relations & Communications17.58yrsno datano data
Clark Jordan
VP, Interim Chief Legal Officer & Corporate Secretary0.58yrno data0.0036% $225.4k
Perry Stuckey
Chief HR Officer & Senior VP7.17yrsno data0.035% $2.2m

6.2yrs

Average Tenure

53yo

Average Age

Experienced Management: EMN's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Costa
Chairman & CEO6.17yrsUS$15.92m0.22% $14.0m
James O'Brien
Independent Director4.08yrsUS$250.07k0.0016% $101.0k
Renée Hornbaker
Independent Director16.5yrsUS$259.07k0.014% $870.8k
Lewis Kling
Independent Director13.42yrsUS$265.07k0.010% $641.6k
Robert Hernandez
Lead Independent Director3.83yrsUS$291.57k0.036% $2.3m
Michael Connors
Independent Director15yrsUS$250.07k0.010% $656.1k
David Raisbeck
Independent Director19.25yrsUS$266.57k0.027% $1.7m
Brett Begemann
Independent Director9.08yrsUS$270.07k0.0059% $372.6k
Julie Fasone-Holder
Independent Director8.33yrsUS$268.07k0.0062% $389.0k
Humberto Alfonso
Independent Director9.17yrsUS$277.57k0.0055% $344.8k

9.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: EMN's board of directors are considered experienced (9.1 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Eastman Chemical Company
  • Ticker: EMN
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: US$6.315b
  • Shares outstanding: 135.89m
  • 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
EACBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 1993
EMN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1993
E1MN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Eastman Chemical Company operates as an advanced materials and specialty additives company worldwide. The company’s Additives & Functional Products segment offers specialty coalescent, specialty and commodity solvents, paint additives, and specialty polymers; hydrocarbon and rosin resins; insoluble sulfur and antidegradant rubber additives; performance resins; amine derivative-based building blocks; heat transfer and aviation fluids; organic acid-based solutions; and metam-based soil fumigants, thiram and ziram based fungicides, and plant growth regulators. It serves the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. Its Advanced Materials segment provides copolyesters, cellulose esters, polyvinyl butyral (PVB) sheets, specialty PVB intermediates, and window and protective films, and aftermarket applied film products for value-added end uses in the transportation, consumables, building and construction, durable goods, and health and wellness markets. The company’s Chemical Intermediates segment offers Olefin and acetyl derivatives, ethylene, and commodity solvents; primary non-phthalate and phthalate plasticizers, and niche non- phthalate plasticizers; and methylamines and salts higher amines and solvents to the industrial chemicals and processing, building and construction, health and wellness, and agrochemicals. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns for use in consumables, and health and wellness markets; and wetlaid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, aerospace, personal hygiene, and consumables markets. The company was founded in 1920 and is headquartered in Kingsport, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:44
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.