Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $8.80B
• Dividend Yield: 4.36%
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.94
• Revenue Growth: 2.78%
• EPS Growth: 1.50%
• Country: US
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 1.91
• Shares Outstanding: 115,460,150
• 10 Day Avg. Volume: 1,957,401
• 30 Day Avg. Volume: 1,957,928
• PEG Ratio: 4.28
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.88
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 5.62
• Enterprise Value/Ebitda: 1.87
• 1Y Price Target: $96.07
• Price Target Upside: 26.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 69 Neutral
• Price Target: $83.00 ▲(8.91%Upside)

Eastman Chemical's overall stock score is influenced by its strong valuation and financial performance, which are offset by technical indicators suggesting bearish momentum. The company's strategic focus on cash flow management and operational efficiency are positives, but economic tensions and tariff impacts present considerable risks. The earnings call reflects a cautious outlook, emphasizing the need for careful navigation of economic challenges.

Positive Factors

Cash Flow and Balance Sheet

The company’s balance sheet is solid and its cash flow remains robust, covering the dividend, buybacks and growth capex.

Defensive Positioning

Eastman is seen as a defensive play within commodity chemicals, given its business portfolio, track record of end-market outgrowth, and idiosyncratic earnings drivers.

Financial Incentives

EMN received $70MM in incentives from the State of Texas.

Negative Factors

Demand and Supply Issues

CapEx is higher versus 2021 and demand is lower, so there are issues to work through.

Macroeconomic Challenges

Tough macro and tariff headwinds have caused a step back for both the core business and the company's methanolysis recycling volume penetration.

Project Funding

The DOE's decision to cancel funding for EMN's $375MM Longview project is seen as a negative for its circular strategy.

Eastman Chemical Business Overview & Revenue Model

Company Description

Eastman Chemical Company (EMN) is a global specialty materials company that produces a broad range of advanced materials, chemicals, and fibers. The company operates through several segments, including Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers. Eastman Chemical serves diverse markets such as transportation, building and construction, consumables, and textiles, providing innovative solutions that enhance the performance and functionality of its customers' products.

How the Company Makes Money

Eastman Chemical makes money primarily through the production and sale of specialty chemicals and advanced materials. The company's revenue model is based on its diversified product portfolio and its ability to serve a wide array of industries. Key revenue streams include sales from the Additives & Functional Products segment, which offers chemicals that improve the performance of products in industries like automotive and agriculture; the Advanced Materials segment, which provides high-performance polymers and films; and the Chemical Intermediates segment, which supplies raw materials for industrial processes. Eastman's Fibers segment also contributes to revenue through the production of cellulose acetate fibers used in textile and cigarette applications. Significant partnerships and customer relationships across diverse industries, as well as a focus on innovation and sustainability, further drive Eastman's earnings.

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	9.36B	9.38B	9.21B	10.58B	10.48B	8.47B
Gross Profit	2.35B	2.29B	2.06B	2.14B	2.50B	1.98B
EBITDA	1.88B	1.80B	1.81B	1.73B	2.42B	1.54B
Net Income	922.00M	905.00M	894.00M	793.00M	857.00M	478.00M
Balance Sheet
Total Assets	14.97B	15.21B	14.63B	14.67B	15.52B	16.08B
Cash, Cash Equivalents and Short-Term Investments	418.00M	837.00M	548.00M	493.00M	459.00M	564.00M
Total Debt	5.02B	5.02B	4.97B	5.15B	5.16B	5.62B
Total Liabilities	9.03B	9.36B	9.10B	9.43B	9.73B	9.97B
Stockholders Equity	5.87B	5.78B	5.46B	5.15B	5.70B	6.02B
Cash Flow
Free Cash Flow	576.00M	688.00M	541.00M	351.00M	1.04B	1.07B
Operating Cash Flow	1.14B	1.29B	1.37B	975.00M	1.62B	1.46B
Investing Cash Flow	-486.00M	-534.00M	-432.00M	392.00M	-29.00M	-394.00M
Financing Cash Flow	-726.00M	-454.00M	-888.00M	-1.32B	-1.69B	-704.00M

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.21
• 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 76.21 is below the 20-day moving average (MA) of 77.22, below the 50-day MA of 77.86, and below the 200-day MA of 91.30, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 53.76 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	69 Neutral	$8.80B	9.71	16.16%	4.36%	2.78%	1.50%
AVTR	67 Neutral	$9.22B	12.91	12.52%	―	-2.64%	173.69%
SQM	67 Neutral	$9.93B	16.59	12.17%	0.47%	-28.74%	53.25%
PPG	64 Neutral	$25.91B	19.34	18.47%	2.38%	-7.67%	-0.58%
WLK	57 Neutral	$9.76B	25.60	3.71%	2.76%	-1.27%	48.34%
ALB	53 Neutral	$7.64B	―	-10.58%	2.49%	-39.34%	-500.52%
Sector *	44 Neutral	C$953.01M	-6.70	-13.31%	2.79%	17.55%	-32.28%

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.

Eastman Chemical Announces Leadership Transition Plan

In January 2025, Eastman Chemical‘s Steve Crawford transitioned to Executive Vice President, Methanolysis Operations and Worldwide Engineering and Construction Transformation to oversee the Kingsport Methanolysis facility’s startup. With the successful completion of this project, the company decided to eliminate his position as part of succession planning, effective June 2, 2025. Crawford’s responsibilities will be reassigned to other executives, and he will receive severance benefits for his 41 years of service.