EMN
CompareEastman Chemical Company
Exchange: NYSESector: Basic MaterialsIndustry: Specialty Chemicals
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2024 revenue of approximately $9.4 billion and is headquartered in Kingsport, Tennessee, USA.
Did you know?
Pays a 4.50% dividend yield.
Current Price
$74.25
+2.12%GoodMoat Value
$37.86
49.0% overvaluedProfile
Valuation (TTM)
Market Cap$8.47B
P/E17.87
EV$11.98B
P/B1.42
Shares Out114.07M
P/Sales0.97
Revenue$8.75B
EV/EBITDA9.85
Eastman Chemical Company (EMN) Stock Analysis
GoodMoat Analysis
Eastman Chemical is a specialty chemicals company whose investment case is currently unfavourable. It shows a weak competitive moat and is trading at a price significantly above the GoodMoat target, indicating a lack of margin of safety.
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Eastman Chemical Company operates in the specialty chemicals industry, producing a diverse range of advanced materials, additives, and functional products. Applying the GoodMoat Investment Framework, the company's competitive position appears weak. A preliminary moat assessment using Section 1 criteria reveals few durable advantages; the company likely scores below the critical threshold of 5, failing the initial 'Moat & Quality Gate' in Section 6. Key financial data supports this: revenue growth is negative at -12.1% YoY, ROE is a modest 8.0%, and profit margins are in the single digits. While the dividend yield of 4.68% is notable, the underlying business quality metrics do not meet the framework's standards for a high-quality, moat-protected enterprise. The valuation assessment is equally concerning. The current price of $71.4 is nearly double the GoodMoat target of $37.86. This suggests the stock is deeply overvalued relative to this model's estimate of intrinsic value, representing a negative margin of safety. For a value investor, this combination—a business lacking a clear, durable competitive advantage and trading at a premium to a calculated fair value—makes further in-depth investigation unfavourable according to the structured decision framework. The primary task would be to identify a significantly lower entry price to justify the risks inherent in a cyclical, capital-intensive business with currently weak fundamentals. Analysis based on data as of 2024-05-15.
Market Cap$8.47B
Current Price$74.25
P/E Ratio17.87
Forward P/E—
PEG Ratio-0.27
EPS$4.10
Book Value$52.26
P/B Ratio1.42
EMN Financial Charts
EMN 52-Week Range
$54.97
$80.38
50-Day MA: $73.30200-Day MA: $66.67
Did you know?
Pays a 4.50% dividend yield.
Eastman Chemical Company (EMN) Financial Summary
Eastman Chemical Company (EMN) is a Basic Materials company in the Specialty Chemicals industry, listed on NYSE. The stock currently trades at $74.25 with a market capitalization of $8.47B.
Key valuation metrics include a P/E ratio of 17.87, price-to-book ratio of 1.42, and EPS of $4.10. The company reports a profit margin of 5.4% and return on equity of 8.0%.
EMN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $8.47B |
| P/E Ratio | 17.87 |
| EPS | $4.10 |
| P/B Ratio | 1.42 |
| P/S Ratio | 0.97 |
| EV/EBITDA | 9.85 |
| Dividend Yield | 4.50% |
| Profit Margin | 5.4% |
| Return on Equity | 8.0% |
| Debt/Equity | 0.80 |
Eastman Chemical Company (EMN) Valuation
Based on GoodMoat's DCF model, Eastman Chemical Company has a fair value estimate of $37.86. At the current price of $74.25, the stock appears 96.1% overvalued relative to our intrinsic value estimate.
EMN Quality Indicators
Eastman Chemical Company maintains a profit margin of 5.4% and an operating margin of 9.8%. Return on equity stands at 8.0%. The current ratio is 1.37. Debt-to-equity ratio is 0.80.
About Eastman Chemical Company
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2024 revenue of approximately $9.4 billion and is headquartered in Kingsport, Tennessee, USA.
EMN Free Cash Flow
Eastman Chemical Company generated $424.00M in trailing twelve-month free cash flow, representing an FCF yield of 5.01%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
EMN Shares Outstanding
Eastman Chemical Company has 0.11 billion shares outstanding at a share price of $74.25, giving it a market capitalization of $8.47B.