Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $7.86B
• Dividend Yield: 5.33%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.11
• Revenue Growth: -3.33%
• EPS Growth: -19.59%
• Country: US
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.75
• Shares Outstanding: 114,097,310
• 10 Day Avg. Volume: 1,718,064
• 30 Day Avg. Volume: 1,575,697
• PEG Ratio: -0.33
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 17.27
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 9.52
• 1Y Price Target: $76.67
• Price Target Upside: 11.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.89
• Revenue Forecast (FY): $8.83B

• Rating: 68 Neutral
• Price Target: $75.00 ▲(8.84% Upside)
• Action: Reiterated Date: 02/22/26
• Date: Action: Reiterated 02/22/26

EMN scores as moderately attractive: solid but recently weaker financial performance (2025 margin/return step-down and uneven cash conversion) is partially offset by strong technical momentum and a supportive dividend yield. The earnings call points to tangible self-help and project-driven upside, but near-term macro and segment headwinds keep the overall score in the upper-middle range.

Positive Factors

Cost Reduction Program

A delivered $100M plus an expanded $225–$250M two-year cost program materially raises structural margin floor and cash generation. Sustained savings reduce earnings cyclicality, fund reinvestment (projects, rPET), and improve resilience to weaker end markets and input-cost swings.

ETP Ethylene→Propylene Project

ETP materially shifts Chemical Intermediates away from bulk ethylene exposure toward higher propylene economics, reducing margin volatility. A sub-two-year payback signals strong ROIC potential, quickly improving segment profitability and strengthening medium-term free cash flow generation.

rPET / Methanolysis Ramp

rPET ramp creates a durable, specialty revenue stream backed by large-brand contracts and circular demand. Higher-margin, contract-backed volumes diversify revenue mix, improve utilization via debottlenecking, and lower commodity sensitivity, supporting sustainable revenue and margin improvement.

Negative Factors

Fibers Weakness

Significant tow volume and textile declines signal structural demand and mix issues in Fibers, a historically stable cash engine. Tariff-driven profit loss and destocking indicate slower recovery, pressuring segment margins and overall portfolio cash generation for multiple quarters.

Chemical Intermediates Volatility

CI earnings remain exposed to commodity cycles and global export pressure, creating persistent volatility until structural projects (ETP) fully mitigate exposure. This amplifies cash and margin variability, complicating planning and lowering the predictability of medium-term returns.

Inconsistent Cash Conversion

Working-capital swings and elevated capital intensity have produced uneven cash conversion despite positive FCF. Modest operating cash coverage restricts flexibility for capex, opportunistic M&A or debt reduction during downturns, keeping leverage and liquidity risk elevated.

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 makes money primarily by manufacturing and selling chemicals and specialty materials to business customers under a portfolio organized by operating segment. (1) Additives & Functional Products: Generates revenue from specialty additives and functional chemicals that enhance performance characteristics (e.g., durability, stability, processing) in customer formulations, typically sold under negotiated contracts and supply agreements to industrial and consumer-oriented manufacturers. (2) Advanced Materials: Earns revenue from higher-value specialty plastics, films, and related materials used in applications such as automotive, architectural, and consumer products; revenue is driven by product mix, application-specific performance requirements, and customer qualification cycles that can support premium pricing relative to commodity materials. (3) Chemical Intermediates: Produces and sells commodity-to-specialty chemical building blocks and intermediates (and in some cases downstream derivatives) that feed internal manufacturing needs and external customer demand; profitability in this segment is generally more exposed to energy, raw material, and industry supply-demand cycles. (4) Fibers: Generates revenue from cellulose acetate tow and other acetyl-based products used in filtration and other end uses, typically sold through longer-term customer relationships where volume and pricing are influenced by end-market demand and contract terms. Across segments, Eastman’s earnings are affected by the spread between selling prices and key input costs (including hydrocarbons, natural gas, and other raw materials), its ability to pass through cost changes via pricing mechanisms, production volumes, and capacity utilization. The company also generates cash flow through continuous improvement and productivity initiatives, portfolio management (including investing in higher-margin specialty areas), and global manufacturing and distribution that supports serving multinational customers.

Eastman Chemical Financial Statement Overview

Summary

Fundamentals are sound but weakened in the latest year: profitability stepped down in 2025 (lower revenue and margins), cash conversion has been inconsistent despite positive FCF, and returns cooled. Balance sheet metrics look generally reasonable, though a 2025 total-debt data anomaly reduces confidence in the leverage read-through.

Income Statement

Profitability has been solid historically (net margins around 7–10% in 2021–2024), but 2025 saw a clear step-down: revenue fell ~3% and net margin dropped to ~5% with lower EBIT/EBITDA margins versus prior years. The business shows some cyclicality (notably the 2023 revenue decline), and the latest year signals weaker pricing/mix and/or cost pressure relative to the stronger 2023–2024 period.

Balance Sheet

Leverage was moderate in 2020–2024 with debt-to-equity roughly ~0.87–1.00, and equity has remained sizeable and relatively stable. Returns on equity were strong in 2021–2024 (~15–16%) but cooled meaningfully in 2025 (~8%), consistent with the earnings decline. A major data flag is 2025 showing total debt as 0, which is a sharp break from prior years and may reflect reporting/classification rather than an actual elimination of debt; excluding that, the balance sheet reads as reasonably levered for a specialty chemicals company.

Cash Flow

Cash generation is positive, but conversion has been inconsistent. Free cash flow improved in 2023–2025 (including growth in 2025), yet operating cash flow coverage is modest across the period (~0.30–0.71) and free cash flow has often been only ~37–73% of net income, dropping to ~44% in 2025. This points to working-capital swings and/or higher capital intensity that can pressure cash availability during weaker earnings years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.75B	9.38B	9.20B	10.54B	10.48B
Gross Profit	1.84B	2.29B	2.06B	2.06B	2.52B
EBITDA	1.29B	1.80B	1.81B	1.64B	1.81B
Net Income	474.00M	905.00M	894.00M	793.00M	857.00M
Balance Sheet
Total Assets	14.86B	15.21B	14.63B	14.67B	15.52B
Cash, Cash Equivalents and Short-Term Investments	566.00M	837.00M	548.00M	493.00M	459.00M
Total Debt	5.08B	5.26B	5.14B	5.15B	5.52B
Total Liabilities	8.82B	9.36B	9.10B	9.43B	9.73B
Stockholders Equity	5.96B	5.78B	5.46B	5.15B	5.70B
Cash Flow
Free Cash Flow	424.00M	688.00M	546.00M	364.00M	1.04B
Operating Cash Flow	970.00M	1.29B	1.37B	975.00M	1.62B
Investing Cash Flow	-462.00M	-534.00M	-432.00M	392.00M	-29.00M
Financing Cash Flow	-797.00M	-454.00M	-888.00M	-1.32B	-1.69B

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 68.91 is below the 20-day moving average (MA) of 72.23, below the 50-day MA of 71.83, and above the 200-day MA of 66.87, indicating a neutral trend. The MACD of -1.11 indicates Positive momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 44.50 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
ESI	70 Outperform	$7.70B	31.70	7.29%	1.25%	3.87%	-10.30%
EMN	68 Neutral	$7.86B	15.45	8.09%	5.33%	-3.33%	-19.59%
NEU	66 Neutral	$5.76B	15.40	25.38%	1.59%	-1.11%	5.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WLK	55 Neutral	$14.40B	―	-15.50%	2.88%	-5.32%	-1108.29%
ALB	54 Neutral	$19.54B	-32.60	-5.13%	1.10%	-23.92%	90.47%
AVTR	50 Neutral	$5.25B	―	-9.02%	―	-3.59%	-126.16%

Eastman Chemical Corporate Events

Eastman Chemical Issues $600 Million Senior Notes Offering

On February 20, 2026, Eastman Chemical Company issued $600 million of 4.500% unsecured notes due 2031 in a public offering, with interest payable semi-annually and optional redemption features that allow early repayment under specified make-whole and par call terms. The notes, which rank equally with Eastman’s other unsecured, unsubordinated debt and include covenants limiting secured borrowing and certain transactions, also feature change-of-control protections that could trigger a repurchase at 101% of principal plus accrued interest.

The sale, underwritten by a syndicate led by major global banks, is expected to generate approximately $593.7 million in net proceeds after underwriting discounts and expenses. Eastman plans to use the funds for general corporate purposes, including working capital, capital expenditures, potential debt repayment and support of its strategic initiatives, reinforcing financial flexibility and funding capacity for ongoing operational and growth plans.

The most recent analyst rating on (EMN) stock is a Hold with a $75.00 price target. To see the full list of analyst forecasts on Eastman Chemical stock, see the EMN Stock Forecast page.