NYSE:EMN

Stock Analysis Report

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Market Cap

US$15.2b

Last Updated

2021/08/03 00:31 UTC

Data Sources

Company Financials +

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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EMN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.08%

EMN

0.2%

US Chemicals

-0.4%

US Market


1 Year Return

48.8%

EMN

34.8%

US Chemicals

34.4%

US Market

Return vs Industry: EMN exceeded the US Chemicals industry which returned 35.3% over the past year.

Return vs Market: EMN exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

EMNIndustryMarket
7 Day0.08%0.2%-0.4%
30 Day-4.1%-0.6%-0.4%
90 Day-7.7%-3.0%4.0%
1 Year52.8%48.8%37.4%34.8%36.5%34.4%
3 Year21.4%9.9%41.3%20.3%62.0%51.9%
5 Year97.9%70.7%95.6%57.5%121.8%97.2%

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

Valuation

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

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMN ($111.88) is trading below our estimate of fair value ($133.79)

Significantly Below Fair Value: EMN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EMN is poor value based on its PE Ratio (30.7x) compared to the US Chemicals industry average (25x).

PE vs Market: EMN is poor value based on its PE Ratio (30.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EMN is poor value based on its PEG Ratio (4.1x)


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 (3x).


Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMN's forecast earnings growth (7.5% per year) is above the savings rate (2%).

Earnings vs Market: EMN's earnings (7.5% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: EMN's revenue (2.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: EMN's revenue (2.6% 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 low in 3 years time (19.3%).


Past Performance

How has Eastman Chemical performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMN has a large one-off loss of $233.0M impacting its March 31 2021 financial results.

Growing Profit Margin: EMN's current net profit margins (5.7%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: EMN's earnings have declined by 10% 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 (-38.9%) over the past year, making it difficult to compare to the Chemicals industry average (25.6%).


Return on Equity

High ROE: EMN's Return on Equity (8%) is considered low.


Financial Health

How is Eastman Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: EMN's short term assets ($3.8B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: EMN's short term assets ($3.8B) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: EMN's debt to equity ratio (87.8%) is considered high.

Reducing Debt: EMN's debt to equity ratio has reduced from 166.5% to 87.8% over the past 5 years.

Debt Coverage: EMN's debt is well covered by operating cash flow (27%).

Interest Coverage: EMN's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMN's dividend (2.47%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: EMN's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 reasonable payout ratio (74.1%), EMN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EMN's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Mark Costa (55 yo)

7.58yrs

Tenure

US$13,561,990

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 ($USD13.56M) is about average for companies of similar size in the US market ($USD11.19M).

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


Leadership Team

Experienced Management: EMN's management team is seasoned and experienced (7.6 years average tenure).


Board Members

Experienced Board: EMN's board of directors are considered experienced (5.5 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$15.249b
  • Shares outstanding: 136.30m
  • Website: https://www.eastman.com

Number of Employees


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 00:31
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.