Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $8.80B
• Dividend Yield: 5.33%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.08
• 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: 1,260,000
• 30 Day Avg. Volume: 1,697,685
• 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: 1.49
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 7.11
• Enterprise Value/Ebitda: 10.11
• 1Y Price Target: $74.90
• Price Target Upside: -0.76% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.82
• Revenue Forecast (FY): $8.81B

• Rating: 68 Neutral
• Price Target: $86.00 ▲(13.95% 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

Diversified specialty-materials portfolio

Eastman’s broad portfolio across advanced materials, chemical intermediates, fibers and additives exposes it to multiple end markets (automotive, packaging, construction). This diversification reduces single-market cyclicality and supports durable revenue streams as product mix shifts with demand and sustainability trends.

Material, credible cost-savings program

Management has executed meaningful, verifiable structural savings ($100m delivered; $225–250m target over two years). These recurring savings improve margin resiliency and cash flow generation even if top-line softness persists, providing a durable lever to restore profitability and fund strategic investments.

Circular/rPET ramp with large-brand contracts

The methanolysis/rPET ramp is a structural growth driver tied to secular sustainability demand and major brand contracts. Expected multi-percent revenue contribution and ~$30m incremental earnings improve structural growth mix, reduce reliance on commodity cycles, and position Eastman in higher-value circular solutions.

Negative Factors

2025 margin and profit step-down

A meaningful 2025 decline in revenue and margins signals structural pressure from weaker pricing/mix and cost headwinds. Reduced net margins and cooling returns limit internal cash generation and indicate the business remains exposed to cyclical softness until higher-margin initiatives fully scale.

Inconsistent cash conversion and working-capital swings

Although FCF is positive, weak and variable cash conversion (large swings and subpar coverage ratios) suggests working-capital or capex intensity risks. This reduces payout and investment flexibility during downturns, making the company more sensitive to earnings volatility despite nominal FCF generation.

Chemical Intermediates earnings volatility

Exposure to bulk ethylene markets creates structural earnings volatility driven by global pricing and export dynamics. Until high-return mitigants (e.g., ETP project) fully execute, CI margins remain susceptible to external commodity swings, weakening aggregate margin stability and forecasting visibility.

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 primarily through the sale of its diverse portfolio of specialty chemicals and materials. The company's revenue model is based on selling products across multiple sectors, with significant contributions from advanced materials, chemical intermediates, and additives. Key revenue streams include the production of performance materials for automotive and consumer applications, as well as specialty additives used in coatings and adhesives. Eastman also engages in strategic partnerships and collaborations with various industries to innovate and expand its product offerings. Factors contributing to its earnings include a strong focus on research and development, global market reach, and adapting to evolving customer needs, particularly in sustainability and performance enhancements.

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: Neutral
• Last Price: 75.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMN, the sentiment is Neutral. The current price of 75.47 is below the 20-day moving average (MA) of 76.63, above the 50-day MA of 70.32, and above the 200-day MA of 68.17, indicating a neutral trend. The MACD of 2.23 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$8.94B	46.64	7.55%	1.25%	3.87%	-10.30%
EMN	68 Neutral	$8.80B	18.81	8.07%	5.33%	-3.33%	-19.59%
NEU	66 Neutral	$5.82B	13.95	25.75%	1.59%	-1.11%	5.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	60 Neutral	$22.02B	-34.03	-5.24%	1.10%	-23.92%	90.47%
WLK	55 Neutral	$13.36B	-8.80	-15.56%	2.88%	-5.32%	-1108.29%
AVTR	50 Neutral	$6.21B	-11.65	-9.20%	―	-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.