Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $7.01B
• Dividend Yield: 5.2%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.07
• Revenue Growth: 1.60%
• EPS Growth: -3.97%
• Country: US
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.60
• Shares Outstanding: 114,832,410
• 10 Day Avg. Volume: 2,684,342
• 30 Day Avg. Volume: 1,754,605
• PEG Ratio: 4.23
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 15.49
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: 7.80
• 1Y Price Target: $73.17
• Price Target Upside: 15.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 63 Neutral
• Price Target: $63.00 ▼(-0.66% Downside)

Eastman Chemical's overall stock score reflects a mix of strong valuation and financial performance, tempered by bearish technical indicators and a cautious earnings outlook. The undervaluation and high dividend yield are significant positives, but immediate market challenges and declining technical momentum reduce the attractiveness of the investment in the short term.

Positive Factors

Demand Recovery

After the destocking process, the company is expected to see a better performance in 2026 if demand stabilizes.

Market Entry

The stock provides a good reentry point given the price relative to expected earnings.

Valuation

The stock is considered oversold, trading at less than 10 times the 2025 EPS with a strong balance sheet.

Negative Factors

Earnings Outlook

The company's earnings for 2025 are significantly lower due to excess inventory destocking and maintenance expenses.

Inventory Management

The need to reduce inventory against a challenging demand backdrop is impacting the company's performance.

Project Delays

The push out of Eastman's second molecular recycling facility by at least 2 years is affecting future recycling earnings potential.

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 generates revenue through the production and sale of its specialty materials and chemicals across multiple sectors. The company primarily earns money through its various business segments, with significant contributions from high-performance materials, additives, and chemical intermediates. Key revenue streams include the sale of engineered materials used in consumer electronics and automotive applications, along with specialty additives that enhance product performance in various industries. Additionally, Eastman has formed strategic partnerships and collaborations with other companies to develop innovative solutions, which further bolster its revenue. The company also benefits from global market trends towards sustainability and environmentally friendly products, aligning its offerings with growing consumer demands.

Eastman Chemical Financial Statement Overview

Summary

Eastman Chemical displays strong profitability and operational efficiency, supported by healthy profit margins and a balanced capital structure. The company demonstrates effective use of equity to generate returns, although a slight revenue decline and free cash flow contraction highlight areas for improvement. Maintaining revenue growth and enhancing cash generation will be crucial for sustaining financial health and supporting future investments.

Income Statement

Eastman Chemical's TTM (Trailing-Twelve-Months) gross profit margin stands at 25.06%, indicating solid profitability. The net profit margin is 9.85%, which reflects consistent earnings relative to revenue. Although the revenue has slightly declined by 0.25% from the previous year, the EBIT and EBITDA margins remain strong at 15.30% and 18.84% respectively. These figures suggest effective cost management and operational efficiency. However, the slight revenue decline is a concern that could impact future profitability if not addressed.

Balance Sheet

The company's debt-to-equity ratio is 0.86, which indicates a balanced capital structure with a manageable level of debt. The return on equity (ROE) is 15.70%, reflecting effective use of shareholders' capital to generate profits. Additionally, the equity ratio is 39.22%, suggesting a strong equity position relative to total assets. Overall, the balance sheet demonstrates financial stability with room for leveraging opportunities if needed.

Cash Flow

Eastman Chemical's TTM operating cash flow to net income ratio is 1.23, showing strong cash conversion from profits. The free cash flow to net income ratio is 0.62, indicating a solid ability to generate cash after capital expenditures. However, the free cash flow growth rate declined by 16.28% from the previous period, suggesting potential challenges in maintaining cash reserves. The company needs to focus on improving its free cash flow generation to ensure long-term financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.29B	9.38B	9.21B	10.58B	10.48B	8.47B
Gross Profit	2.23B	2.29B	2.06B	2.14B	2.50B	1.98B
EBITDA	1.72B	1.80B	1.81B	1.64B	1.82B	1.31B
Net Income	832.00M	905.00M	894.00M	793.00M	857.00M	478.00M
Balance Sheet
Total Assets	15.22B	15.21B	14.63B	14.67B	15.52B	16.08B
Cash, Cash Equivalents and Short-Term Investments	423.00M	837.00M	548.00M	493.00M	459.00M	564.00M
Total Debt	5.13B	5.02B	4.97B	5.15B	5.37B	5.62B
Total Liabilities	9.31B	9.36B	9.10B	9.43B	9.73B	9.97B
Stockholders Equity	5.83B	5.78B	5.46B	5.15B	5.70B	6.02B
Cash Flow
Free Cash Flow	326.00M	688.00M	541.00M	351.00M	1.04B	1.07B
Operating Cash Flow	769.00M	1.29B	1.37B	975.00M	1.62B	1.46B
Investing Cash Flow	-365.00M	-534.00M	-432.00M	392.00M	-29.00M	-394.00M
Financing Cash Flow	-499.00M	-454.00M	-888.00M	-1.32B	-1.69B	-704.00M

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.42
• 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 63.42 is below the 20-day moving average (MA) of 70.66, below the 50-day MA of 74.99, and below the 200-day MA of 86.45, indicating a bearish trend. The MACD of -4.53 indicates Positive momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 28.98 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
SQM	68 Neutral	$12.64B	21.76	12.13%	0.47%	-29.03%	52.74%
EMN	63 Neutral	$7.01B	8.58	14.52%	5.20%	1.60%	-3.97%
AVTR	60 Neutral	$8.25B	12.02	11.73%	―	-2.34%	89.86%
ALB	55 Neutral	$9.50B	―	-8.66%	2.08%	-33.05%	-97.63%
PPG	55 Neutral	$24.04B	18.89	16.88%	2.52%	-10.59%	-7.79%
WLK	51 Neutral	$9.86B	25.36	-0.64%	2.65%	-3.00%	-124.79%
Sector *	44 Neutral	AU$1.54B	-7.19	-27.94%	4.41%	-2.95%	-36.41%

Eastman Chemical Corporate Events

Eastman Chemical Appoints Damon Audia to Board

On June 27, 2025, Eastman Chemical Company announced the appointment of Damon Audia as a director on its Board, to serve until the 2026 Annual Meeting of Stockholders. Mr. Audia will join the Audit, Finance, and Environmental, Safety and Sustainability Committees, receiving compensation aligned with the company’s non-employee directors. This strategic appointment is expected to enhance the company’s governance and oversight capabilities, potentially impacting its operational and sustainability initiatives positively.

The most recent analyst rating on (EMN) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Eastman Chemical stock, see the EMN Stock Forecast page.