Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $8.72B
• Dividend Yield: 4.45%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.06
• Revenue Growth: 1.91%
• EPS Growth: 2.94%
• Country: US
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 7.69
• Shares Outstanding: 115,459,910
• 10 Day Avg. Volume: 1,291,000
• 30 Day Avg. Volume: 1,125,454
• PEG Ratio: 3.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.09
• Price to Cash Flow (P/CF): 4.70
• P/FCF Ratio: 4.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $110.69
• Price Target Upside: 52.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

Eastman Chemical's strong financial health, driven by solid profitability and efficient cash flow management, underpins its stock strength. While technical indicators suggest caution, the attractive valuation and balanced earnings call outlook, with growth initiatives and operational improvements, contribute positively to the stock's appeal. Challenges in specific segments and market conditions present moderate risks.

Positive Factors

Earnings Growth

Strong 2024 provides positive growth set up for 2025: EMN delivered solid 23% Y/Y EPS growth in 2024, driven by growth in higher sales volumes/mix from the end of customer destocking and innovation growth.

EBITDA Growth

Kingsport poised to reach $100MM incremental EBITDA run rate by the end of 2025, with demand remaining solid in both the durable and consumer packaging side.

Innovation

Eastman expects that their innovation with interlayers will continue to support market outgrowth.

Negative Factors

Consumer Confidence

Weaker consumer confidence could still trigger adjustments downstream.

Foreign Exchange

Headwinds from foreign exchange fluctuations are expected to challenge the company's financial performance.

Trade Policies

Protectionist trade policies likely cause another step-down in demand.

Eastman Chemical Business Overview & Revenue Model

Company Description

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. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, cellulose esters, polyvinyl butyral (PVB) sheets, and window and protective films, and aftermarket applied film products for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables markets. The company's Chemical Intermediates segment offers methylamines and salts higher amines and solvents; Olefin and acetyl derivatives, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non- phthalate plasticizers 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, acetic acid, 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 wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. Eastman Chemical Company was founded in 1920 and is headquartered in Kingsport, Tennessee.

How the Company Makes Money

Eastman Chemical makes money primarily through the manufacture and sale of specialty chemicals and advanced materials. The company operates through several business segments, including Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers. Revenue is generated from selling products like coatings, adhesives, specialty plastics, and fibers to various industries, including automotive, consumer goods, electronics, and textiles. Significant earnings are derived from long-term supply agreements, research and development partnerships, and a focus on innovation in sustainable and high-performance materials. The company leverages its global production and distribution network to serve a diverse customer base, contributing to consistent revenue streams.

Eastman Chemical Financial Statement Overview

Summary

Eastman Chemical demonstrates a strong financial position with robust profitability and efficient operational controls. The company has a solid balance sheet with reduced debt, enhancing financial stability. While revenue growth is modest, cash flow generation is strong, indicating good liquidity and operational efficiency.

Income Statement

Eastman Chemical shows a robust performance with a strong gross profit margin of 24.4% for 2024, attributed to efficient cost management. The net profit margin remains healthy at 9.6%, indicating solid profitability. Revenue growth is moderate at 1.9% compared to the previous year, suggesting stability but limited top-line expansion. EBIT and EBITDA margins are strong at 13.9%, reflecting effective operational control. However, revenue has not returned to 2022 levels, indicating potential growth challenges.

Balance Sheet

The balance sheet of Eastman Chemical is solid, with a substantial equity base. The equity ratio is 38%, indicating a strong reliance on equity for financing. The company has significantly reduced its debt, resulting in a debt-to-equity ratio of 0, showcasing financial prudence. Return on equity is commendable at 15.7%, indicating efficient use of shareholders' funds. The reduction in total debt improves financial stability and reduces leverage risk.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 27.2% in 2024, highlighting improved cash generation capabilities. The operating cash flow to net income ratio stands at 1.42, indicating strong cash earnings support. The free cash flow to net income ratio of 0.76 suggests effective capital expenditure management and healthy free cash flow generation. Overall, cash flow metrics demonstrate the company's solid liquidity position and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.38B	9.21B	10.58B	10.48B	8.47B
	Gross Profit
2.29B	2.06B	2.14B	2.50B	1.98B
	EBIT
1.30B	1.09B	1.25B	1.88B	968.00M
	EBITDA
1.80B	1.81B	1.73B	2.42B	1.54B
	Net Income Common Stockholders
905.00M	894.00M	793.00M	857.00M	478.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
837.00M	548.00M	493.00M	459.00M	564.00M
	Total Assets
15.21B	14.63B	14.67B	15.52B	16.08B
	Total Debt
5.02B	4.97B	5.15B	5.16B	5.62B
	Net Debt
4.18B	4.42B	4.66B	4.70B	5.05B
	Total Liabilities
9.36B	9.10B	9.43B	9.73B	9.97B
	Stockholders Equity
5.78B	5.46B	5.15B	5.70B	6.02B
Cash Flow		Free Cash Flow
688.00M	541.00M	351.00M	1.04B	1.07B
	Operating Cash Flow
1.29B	1.37B	975.00M	1.62B	1.46B
	Investing Cash Flow
-534.00M	-432.00M	392.00M	-29.00M	-394.00M
	Financing Cash Flow
-454.00M	-888.00M	-1.32B	-1.69B	-704.00M

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMN, the sentiment is Negative. The current price of 72.7 is below the 20-day moving average (MA) of 86.80, below the 50-day MA of 93.24, and below the 200-day MA of 96.92, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EMN.

Eastman Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	75 Outperform	$8.72B	9.84	16.11%	4.45%	1.91%	2.94%
AVTR	66 Neutral	$10.38B	13.70	12.69%	―	-2.64%	120.05%
PPG	65 Neutral	$22.00B	16.25	19.13%	2.77%	-4.59%	11.09%
WLK	59 Neutral	$11.37B	19.06	5.76%	2.41%	-3.24%	24.29%
SQM	48 Neutral	$10.11B	―	-7.56%	3.93%	-39.35%	-120.09%
Sector *	47 Neutral	$2.32B	-2.83	-21.67%	3.65%	4.83%	-28.82%
ALB	43 Neutral	$6.88B	―	-12.18%	2.78%	-44.08%	-183.44%

Eastman Chemical Corporate Events

Eastman Chemical Announces Severance Agreement with Executive

On March 10, 2025, Eastman Chemical Company entered into a severance agreement with Brad A. Lich, outlining severance benefits in the event of certain employment terminations. The agreement includes a $2 million cash severance payment and up to four months of healthcare coverage, contingent on compliance with restrictive covenants and a release of claims.