Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $7.39B
• Dividend Yield: 5.2%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.04
• 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: 1,737,084
• 30 Day Avg. Volume: 1,420,673
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 7.81
• 1Y Price Target: $74.00
• Price Target Upside: 15.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Neutral
• Price Target: $74.00 ▲(15.93% Upside)

Eastman Chemical's overall score reflects strong valuation metrics and operational efficiency. However, challenges such as declining revenue, liquidity concerns, and market uncertainties due to trade dynamics weigh on the score. The company's strategic initiatives and governance improvements provide some optimism for future performance.

Positive Factors

Operational Efficiency

Strong operational efficiency, as indicated by healthy EBIT and EBITDA margins, suggests Eastman Chemical can effectively manage costs and maintain profitability over time.

Methanolysis Plant Success

The successful operation of the methanolysis plant, with plans for capacity expansion, indicates potential for increased returns and long-term profitability improvements.

Governance Enhancement

The addition of Damon Audia to the Board is expected to enhance governance and oversight, potentially leading to better strategic decisions and sustainability initiatives.

Negative Factors

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or competitive positioning, which could impact long-term business sustainability if not addressed.

Liquidity Concerns

Decreasing free cash flow and cash conversion efficiency may limit Eastman's ability to invest in growth opportunities or weather financial downturns, impacting long-term stability.

Trade War and Tariff Challenges

Trade war and tariff challenges create demand uncertainty, particularly affecting key markets like consumer durables and automotive, potentially hindering growth prospects.

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 demonstrates strong operational efficiency with healthy EBIT and EBITDA margins, though recent revenue declines and reduced net profit margins highlight profitability pressures. The balance sheet remains stable with a balanced debt-to-equity ratio and solid return on equity. However, declining free cash flow growth and cash conversion ratios suggest potential liquidity concerns.

Income Statement

Eastman Chemical's income statement reflects a stable gross profit margin of around 24% over the recent periods, indicating consistent cost management. However, the net profit margin has slightly decreased to 8.96% in the TTM, reflecting some pressure on profitability. Revenue growth has been negative in the TTM, showing a decline of 0.78%, which is a concern. The EBIT and EBITDA margins remain healthy at 13.11% and 18.57%, respectively, suggesting strong operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.88 in the TTM, indicating a balanced approach to leveraging. Return on equity is solid at 14.38%, reflecting effective use of equity to generate profits. The equity ratio stands at 38.35%, suggesting a stable capital structure. However, the slight increase in debt levels over time could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 28.87% in the TTM, which is concerning. The operating cash flow to net income ratio is 0.32, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.42, showing a decline in cash conversion efficiency. These trends suggest potential liquidity challenges if the decline continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.28B	9.37B	9.20B	10.54B	10.48B	8.46B
Gross Profit	2.26B	2.33B	2.06B	2.06B	2.52B	2.00B
EBITDA	1.72B	1.80B	1.81B	1.64B	1.81B	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	409.00M	688.00M	546.00M	364.00M	1.04B	1.06B
Operating Cash Flow	1.00B	1.29B	1.37B	975.00M	1.62B	1.46B
Investing Cash Flow	-512.00M	-534.00M	-432.00M	392.00M	-29.00M	-394.00M
Financing Cash Flow	-589.00M	-454.00M	-888.00M	-1.32B	-1.69B	-704.00M

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 63.83 is below the 20-day moving average (MA) of 66.48, below the 50-day MA of 67.74, and below the 200-day MA of 80.45, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 6.44 is Positive, 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	80 Outperform	6.12B	26.08	9.15%	1.26%	5.41%	23.44%
NEU	76 Outperform	7.69B	16.16	29.80%	1.31%	2.27%	17.81%
EMN	70 Neutral	$7.39B	9.04	14.52%	5.20%	1.60%	-3.97%
AVTR	63 Neutral	8.19B	11.93	10.94%	―	-2.34%	89.86%
ALB	55 Neutral	9.60B	-8.75	-9.08%	1.99%	-33.05%	-97.63%
WLK	52 Neutral	10.12B	-148.89	-0.64%	2.67%	-3.00%	-124.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.