10Y annualized return is
negative
at -0.1% per year
EMN has met or exceeded earnings expectations in
most
recent quarters (9/10)
Attractive Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Adequate Current Ratio
Strong Interest Coverage
💪 Strong Competitive Advantage
🔄 Commitment to Circular Economy
🚀 Innovation and Growth Potential
📈 Strong Order Visibility
High Price-to-Free Cash Flow Ratio
Moderate EV/EBITDA Ratio
Declining Operating Profit Margin
Net Profit Margin is Moderate
Moderate Debt Levels
Low Quick Ratio
📉 Headwinds Affecting Earnings
⚠️ Economic Challenges Impacting Demand
Overall, Eastman exhibits a strong business model with significant competitive advantages primarily driven by innovation and a commitment to sustainability. However, external economic challenges and rising costs pose risks to short-term earnings growth. The company is well-positioned for future opportunities, especially in the circular economy sector, but must navigate current headwinds carefully.
Analysis Date: January 31, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Eastman Chemical Company is a company that makes special materials used in many everyday products. They create things like additives for paints, plastics, and personal care items, which help improve their performance. They also produce materials for packaging, electronics, and construction. Founded in 1920 and based in Tennessee, Eastman focuses on providing solutions that support various industries, from agriculture to healthcare.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$298.56
Current Market Price: $74.73
IV/P Ratio: 4.00x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
75.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for EMN
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (9.74)
P/B ratio ≤ 1.5 (1.53)
Current ratio ≥ 2.0 (1.51x)
Long-term debt < Net current assets (3.28x)
Margin of safety (75.0%)
EMN does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
16.08%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
24.61%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
9.65%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A return on equity of 16.02% reflects effective management in generating profits from shareholders' equity.
The gross profit margin of 24.61% indicates a strong capability to sell products at a profit after accounting for direct costs.
The operating profit margin of 10.83% may raise concerns about cost management and operational efficiency.
The net profit margin of 9.65% could be improved, indicating room for enhanced profitability after all expenses.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.86x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.51x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The current ratio of 1.51 indicates that EMN has sufficient short-term assets to cover its short-term liabilities, suggesting good liquidity.
An interest coverage ratio of 4.70 suggests that EMN can easily meet its interest obligations, demonstrating financial stability.
The debt-to-equity ratio of 0.87 indicates a reliance on debt financing, which could pose risks during economic downturns.
A quick ratio of 0.78 suggests potential challenges in meeting short-term liabilities without selling inventory.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Eastman has demonstrated a strong competitive advantage through its innovative capabilities, particularly in the Advanced Materials segment. The company successfully recovered earnings from a challenging environment in 2023, evidencing its resilience and strategic management.
The company's focus on circular economy projects aligns with both economic and environmental goals, potentially positioning Eastman as a leader in sustainable practices. The circular economy initiative not only addresses plastic waste but also creates domestic jobs and strengthens supply chain resilience.
Despite strong performance in certain segments, Eastman faces challenges such as increasing natural gas prices and currency fluctuations that may offset some of the anticipated earnings growth in the Advanced Materials segment.
Eastman is focused on innovation, particularly in the Advanced Materials segment, which is expected to fuel growth through new product developments and market expansions. The company expects strong growth from its circular economy projects in the back half of the year.
Eastman has a robust order book for its circular economy products, indicating strong demand. Over 100 customers are committed to renewing their contracts, which is a positive sign for future sales and revenue stability.
The company faces a weak economic environment, which may slow the pace of customer orders and project launches in the circular economy space. This could moderate growth expectations in the near term.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 2.00x)
Total Bought
Total value of insider purchases in recent quarters
$6250
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
EMN: No insider sale data available
Active Insiders
Number of insiders trading in recent quarters
1
Limited insider activity
Recent Trend
Change in insider trading pattern
EMN: No trend data available
