Want to see EMN full AI Analyst Report?
Top Page
Eastman Chemical
(NYSE:EMN)
Select Model
Select Model
Rating:70Outperform
Price Target:
$79.00
▲(15.84% Upside)
Action:Upgraded
Date:08/04/26
EMN scores well on forward-looking operational execution and improved outlook from the latest earnings call (pricing, cost reductions, and Renew/Kingsport progress), supported by a solid dividend and reasonable P/E. The score is capped by weaker current profitability versus prior years and mixed technical momentum signals, alongside ongoing cyclical/macro risks (discretionary demand softness, Chemical Intermediates spread uncertainty, and working-capital cash pressure).
Positive Factors
Pricing Power
Disciplined pricing that management estimates will add ~$500M of revenue is a durable competitive lever in specialty chemicals. It demonstrates the ability to pass through input cost inflation, protect per‑kg margins, and sustain earnings even when volumes face cyclical pressure, supporting long‑term cash generation.
Negative Factors
Profitability Compression
Margins and net income have meaningfully compressed versus 2023–2024, reducing the company’s earnings cushion. Lower profitability limits reinvestment capacity, raises sensitivity to feedstock/energy swings, and weakens return on capital, making durable growth and margin recovery more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Pricing Power
Disciplined pricing that management estimates will add ~$500M of revenue is a durable competitive lever in specialty chemicals. It demonstrates the ability to pass through input cost inflation, protect per‑kg margins, and sustain earnings even when volumes face cyclical pressure, supporting long‑term cash generation.
Read all positive factors
Eastman Chemical Key Performance Indicators (KPIs)
Any
Adjusted EBIT by Segment
Shows earnings before interest and taxes for each segment, adjusted for one-time items, providing insight into core profitability and operational efficiency.
Shows earnings before interest and taxes for each segment, adjusted for one-time items, providing insight into core profitability and operational efficiency.
Data provided by:
The Fly
The FlyEastman Chemical (EMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.00B
Dividend Yield4.79%
Average Volume (3M)1.25M
Price to Earnings (P/E)18.1
Beta (1Y)1.04
Revenue Growth-4.30%
EPS Growth-46.24%
CountryUS
Employees13,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.87
Shares Outstanding114,349,960
10 Day Avg. Volume1,236,826
30 Day Avg. Volume1,254,777
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$81.00Price Target Upside18.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.31
Revenue Forecast (FY)$9.24B
Eastman Chemical Business Overview & Revenue Model
Company Description
Eastman Chemical Company (EMN) is a global specialty materials company that manufactures and markets a range of chemicals, polymers, and fibers used in consumer, industrial, and transportation end markets. The company operates through segments tha...
How the Company Makes Money
Eastman makes money primarily by manufacturing specialty chemicals and materials and selling them to business customers under contracts and ongoing supply relationships, generating revenue based on shipment volumes and negotiated pricing that refl...
Eastman Chemical Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed several substantive operational and commercial wins — a Q2 beat, strong pricing actions (~$500M revenue uplift from pricing), Renew/circular revenue momentum (> $100M YTD, ~100% growth vs. prior year), solid methanolysis technical performance (yields >90%) and ongoing cost reduction execution — which collectively point to improving earnings momentum into the back half of the year. Offsetting these positives are persistent weak discretionary end markets, textile/Fibers pressure, receivables-driven cash use (~$370M), some capacity constraints that modestly reduced near-term revenue guidance, and uncertainty around Chemical Intermediates spreads tied to Middle East dynamics. On balance the company presented more actionable positives and clear mitigation plans than outsized negatives, though several macro and inventory/market risks remain.Positive Updates
Q2 Beat and Positive Back-Half Outlook
Management described a 'strong beat' in Q2 with confidence in a solid Q3 and a stronger back half; Q4 is expected to be the strongest revenue quarter of the year.
Negative Updates
Weak Discretionary End Markets and Economic Headwinds
Management reiterated that discretionary end markets (auto, building & construction, consumer durables/aftermarket) remain weak, with a slow economy causing customers to be highly cost-disciplined and moderating demand/ramp rates.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Beat and Positive Back-Half Outlook
Management described a 'strong beat' in Q2 with confidence in a solid Q3 and a stronger back half; Q4 is expected to be the strongest revenue quarter of the year.
Read all positive updates
Company Guidance
Management said the outlook is better than in April after a strong Q2 and expects a stronger back half: Advanced Materials volumes grew ~5% in Q2 and are expected to be flat sequential into Q3 but substantially higher year‑over‑year, Renew sales increased by >$100M in H1 (roughly double vs. prior year) and roughly half of AM’s growth, and Q4 should be the strongest quarter for Kingsport methanolysis (about $100M this year, annualizing into 2027). Key operational metrics cited include methanolysis yields >90%, ~30% debottleneck potential at Kingsport, polymer capacity target up to ~130,000 tonnes (~130% of design), and prior Renew asset utilization of ~50% with room to reach 100%. Financial drivers and guidance items: pricing actions are expected to add roughly $500M of revenue this year, a cost‑reduction program of $125–150M (net of inflation), a Q2 turnaround headwind of ~$40–45M (now expected to swing to a ~$10–20M sequential benefit vs. the original plan), YTD receivables use of ~$370M and a working‑capital target moving from about $970M toward ~$900M (~$75M improvement), plus management remains on track for the Renew platform’s first‑asset target of ~$200M EBITDA — while noting Chemical Intermediates spreads are uncertain given Middle East dynamics.Eastman Chemical Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.87B | 8.75B | 9.38B | 9.20B | 10.54B | 10.48B |
| Gross Profit | 1.76B | 1.84B | 2.29B | 2.06B | 2.06B | 2.52B |
| EBITDA | 1.27B | 1.29B | 1.80B | 1.81B | 1.64B | 1.81B |
| Net Income | 442.00M | 474.00M | 905.00M | 894.00M | 793.00M | 857.00M |
Balance Sheet | ||||||
| Total Assets | 15.42B | 14.86B | 15.21B | 14.63B | 14.67B | 15.52B |
| Cash, Cash Equivalents and Short-Term Investments | 691.00M | 566.00M | 837.00M | 548.00M | 493.00M | 459.00M |
| Total Debt | 5.22B | 5.08B | 5.26B | 5.14B | 5.15B | 5.52B |
| Total Liabilities | 9.25B | 8.82B | 9.36B | 9.10B | 9.43B | 9.73B |
| Stockholders Equity | 6.10B | 5.96B | 5.78B | 5.46B | 5.15B | 5.70B |
Cash Flow | ||||||
| Free Cash Flow | 539.00M | 424.00M | 688.00M | 546.00M | 364.00M | 1.04B |
| Operating Cash Flow | 991.00M | 970.00M | 1.29B | 1.37B | 975.00M | 1.62B |
| Investing Cash Flow | -387.00M | -462.00M | -534.00M | -432.00M | 392.00M | -29.00M |
| Financing Cash Flow | -342.00M | -797.00M | -454.00M | -888.00M | -1.32B | -1.69B |
Eastman Chemical Technical Analysis
Positive
68.20
Price Trends
70.56
Positive
71.14
Positive
68.03
Positive
Market Momentum
0.36
Negative
66.08
Neutral
87.95
Negative
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 68.2 is below the 20-day moving average (MA) of 68.67, below the 50-day MA of 70.56, and above the 200-day MA of 68.03, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 87.95 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.82B | 44.07 | 24.63% | 1.51% | -1.31% | -7.93% | |
70 Outperform | $8.00B | 18.07 | 7.42% | 4.91% | -4.30% | -46.24% | |
64 Neutral | $9.32B | -16.43 | -10.34% | ― | -1.57% | -183.83% | |
62 Neutral | $8.95B | 49.96 | 6.57% | 0.85% | 26.61% | -25.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $13.87B | -34.60 | -2.35% | 1.41% | 7.87% | 69.44% | |
48 Neutral | $9.03B | -5.53 | -17.68% | 2.87% | -8.63% | -524.43% |
* Basic Materials Sector Average
EMN
Eastman Chemical
73.90
15.42
26.38%
ALB
Albemarle
120.82
53.48
79.42%
NEU
Newmarket
889.04
191.51
27.45%
WLK
Westlake Corporation
80.63
-0.31
-0.38%
ESI
Element Solutions
38.89
15.56
66.72%
AVTR
Avantor
13.68
2.04
17.53%
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...
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.