Eastman Chemical Company (EMN)
NYSE:EMN
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Eastman Chemical
(NYSE:EMN)
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Rating:65Neutral
Price Target:
$80.00
▲(8.43% Upside)
Action:Reiterated
Date:05/13/26
EMN scores mid-range primarily due to softened recent fundamentals (lower revenue and compressed margins/returns) offset by steady/improving free cash flow. The earnings call adds support with reiterated growth and >$6 EPS guidance backed by significant pricing actions and expected Chemical Intermediates improvement, while technicals are mildly positive and valuation is neutral with a strong dividend yield.
Positive Factors
Improving free cash flow
Sustained positive free cash flow and ~ $1.0B TTM operating cash provide durable internal funding for capex, dividends, and debt servicing. Even with timing variability, consistent FCF growth increases financial flexibility and supports strategic investments over the next several quarters.
Negative Factors
Revenue and margin compression
A sustained decline in revenue and roughly halved net margins versus earlier years undermines return on capital and reinvestment capacity. Persistently weaker top-line and margin mix pressure reduce long-term earnings power and limit the firm's ability to re-expand returns without structural demand recovery.
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Positive Factors
Negative Factors
Improving free cash flow
Sustained positive free cash flow and ~ $1.0B TTM operating cash provide durable internal funding for capex, dividends, and debt servicing. Even with timing variability, consistent FCF growth increases financial flexibility and supports strategic investments over the next several quarters.
Read all positive factors
Eastman Chemical Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Breaks down revenue across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyEastman Chemical (EMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.48B
Dividend Yield5.33%
Average Volume (3M)1.26M
Price to Earnings (P/E)20.3
Beta (1Y)1.01
Revenue Growth-7.41%
EPS Growth-56.10%
CountryUS
Employees14,000
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)3.49
Shares Outstanding114,349,960
10 Day Avg. Volume1,147,235
30 Day Avg. Volume1,259,302
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.23
Price to Sales (P/S)0.84
P/FCF Ratio17.27
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit7.69
Enterprise Value/Ebitda11.04
Forecast
1Y Price Target
$83.00Price Target Upside12.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)6.34
Revenue Forecast (FY)$9.13B
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-...
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 an...
Eastman Chemical Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: multiple strong positives (methanolysis momentum, CI spread-driven earnings uplift, substantial pricing actions, tariff refund neutrality, and a path to >$6 EPS) outweigh notable risks (fibers weakness, end-market softness, geopolitical uncertainty, working capital headwinds, and input-price volatility). Management emphasized pricing power, North American supply advantage, and commercial wins that should drive sequential and back-half improvement, while acknowledging near-term visibility and segment-specific challenges.Positive Updates
Methanolysis / Circular Platform Momentum
Renewed methanolysis platform driving revenue growth in specialty plastics and rPET with new wins in Tritan and cosmetic packaging; company reiterates prior guidance of ~4%–5% revenue growth and notes potential upside as rPET demand strengthens versus rising virgin PET prices.
Negative Updates
Fibers Segment Weakness and Lowered Near-Term Expectations
Fibers experienced reduced customer shipments and forward-looking volume risk from Middle East customers; management cut segment expectations (noted a ~$20 million reduction versus prior guide) and set a fibers earnings range near $210 million–$240 million driven by slower yarn growth and lower asset utilization.
Read all updates
Q1-2026 Updates
Positive
Negative
Methanolysis / Circular Platform Momentum
Renewed methanolysis platform driving revenue growth in specialty plastics and rPET with new wins in Tritan and cosmetic packaging; company reiterates prior guidance of ~4%–5% revenue growth and notes potential upside as rPET demand strengthens versus rising virgin PET prices.
Read all positive updates
Company Guidance
Management reiterated a 2026 revenue outlook of roughly 4–5% growth and said adjusted EPS should be above $6 per share, noting they have implemented about $500 million of price increases (Chemical Intermediates pricing sequentially approaching ~20% while specialties see mid‑single‑digit Q1→Q2 increases); Chemical Intermediates is expected to deliver roughly $50 million of EBIT in Q2 with an estimated ~$50 million maintenance/shutdown tailwind in Q3, fibers segment guidance was trimmed to about $210–$240 million of EBIT for the year, and the company recognized ≈$20 million of IEEPA tariff refunds in Q1 (cash expected in H2); management also flagged a potential working‑capital headwind of roughly $150–$200 million (as a proxy of 1/3 of a $500 million revenue uplift), noted a ~$100 million incremental cost base tied to the methanolysis plant while highlighting rPET/methanolysis growth opportunities, and said CI can sell essentially all volumes it can produce.Eastman Chemical Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.64B | 8.75B | 9.38B | 9.20B | 10.54B | 10.48B |
| Gross Profit | 1.71B | 1.84B | 2.29B | 2.06B | 2.06B | 2.52B |
| EBITDA | 1.19B | 1.29B | 1.80B | 1.81B | 1.64B | 1.81B |
| Net Income | 399.00M | 474.00M | 905.00M | 894.00M | 793.00M | 857.00M |
Balance Sheet | ||||||
| Total Assets | 15.22B | 14.86B | 15.21B | 14.63B | 14.67B | 15.52B |
| Cash, Cash Equivalents and Short-Term Investments | 665.00M | 566.00M | 837.00M | 548.00M | 493.00M | 459.00M |
| Total Debt | 5.33B | 5.08B | 5.26B | 5.14B | 5.15B | 5.52B |
| Total Liabilities | 9.14B | 8.82B | 9.36B | 9.10B | 9.43B | 9.73B |
| Stockholders Equity | 6.01B | 5.96B | 5.78B | 5.46B | 5.15B | 5.70B |
Cash Flow | ||||||
| Free Cash Flow | 498.00M | 424.00M | 688.00M | 546.00M | 364.00M | 1.04B |
| Operating Cash Flow | 1.00B | 970.00M | 1.29B | 1.37B | 975.00M | 1.62B |
| Investing Cash Flow | -435.00M | -462.00M | -534.00M | -432.00M | 392.00M | -29.00M |
| Financing Cash Flow | -332.00M | -797.00M | -454.00M | -888.00M | -1.32B | -1.69B |
Eastman Chemical Technical Analysis
Positive
73.78
Price Trends
72.62
Positive
71.98
Positive
66.76
Positive
Market Momentum
-0.31
Positive
53.60
Neutral
66.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMN, the sentiment is Positive. The current price of 73.78 is above the 20-day moving average (MA) of 73.28, above the 50-day MA of 72.62, and above the 200-day MA of 66.76, indicating a bullish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMN.
Eastman Chemical Risk Analysis
Eastman Chemical disclosed 16 risk factors in its most recent earnings report. Eastman Chemical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eastman Chemical Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $20.24B | 16.58 | -2.35% | 1.10% | 7.87% | 69.44% | |
65 Neutral | $8.48B | 20.33 | 6.77% | 5.33% | -7.41% | -56.10% | |
65 Neutral | $6.79B | 12.75 | 24.12% | 1.59% | -3.47% | -12.95% | |
64 Neutral | $9.93B | 37.13 | 5.56% | 1.25% | 13.00% | -48.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $5.54B | 30.69 | -9.59% | ― | -1.99% | -176.82% | |
46 Neutral | $11.35B | -22.61 | -17.68% | 2.88% | -8.63% | -524.43% |
* Basic Materials Sector Average
EMN
Eastman Chemical
74.12
-2.65
-3.45%
ALB
Albemarle
171.58
114.96
203.06%
NEU
Newmarket
737.72
107.88
17.13%
WLK
Westlake Corporation
88.60
18.50
26.39%
ESI
Element Solutions
40.75
19.61
92.77%
AVTR
Avantor
8.12
-4.57
-36.01%
Eastman Chemical Corporate Events
Executive/Board ChangesShareholder Meetings
Eastman Chemical shareholders back directors, auditor and pay plan
Positive
May 12, 2026
Eastman Chemical Company held its 2026 Annual Meeting of Stockholders on May 7, 2026, with approximately 88% of outstanding shares represented, and stockholders elected all eleven director nominees to serve until the 2027 meeting. Investors also r...
Business Operations and StrategyPrivate Placements and Financing
Eastman Chemical Issues $600 Million Senior Notes Offering
Positive
Feb 20, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.