Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $7.85B
• Dividend Yield: 5.33%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 11.5
• 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): 1.14
• Shares Outstanding: 114,069,800
• 10 Day Avg. Volume: 1,267,349
• 30 Day Avg. Volume: 1,518,682
• PEG Ratio: 4.23
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 15.49
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $72.00
• Price Target Upside: 4.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.19
• Revenue Forecast (FY): $8.86B

• Rating: 72 Outperform
• Price Target: $70.00 ▲(1.77% Upside)

Eastman Chemical's overall stock score reflects a balanced view of its financial stability, attractive valuation, and positive technical indicators. The company's strategic focus on cost savings and innovation is promising, but trade challenges and weak demand pose near-term risks. The strong dividend yield and low P/E ratio enhance its appeal.

Positive Factors

Cost Management

Effective cost management enhances profitability and financial stability, allowing Eastman to reinvest in growth and innovation.

Dividend Increase

A consistent dividend increase reflects strong cash generation and commitment to shareholder value, supporting investor confidence.

Innovation in Operations

AI integration can drive long-term operational efficiency and innovation, positioning Eastman for competitive advantage.

Negative Factors

Declining Revenue Growth

Declining revenue growth can limit future profitability and market share expansion, challenging Eastman's long-term growth prospects.

Cash Flow Challenges

Weak cash flow growth may constrain Eastman's ability to fund new projects or manage debt, impacting financial flexibility.

Trade and Market Pressures

Trade and market pressures can hinder revenue and profit margins, posing risks to Eastman's market position and growth strategy.

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

Eastman Chemical shows strong operational efficiency with healthy EBIT and EBITDA margins. However, 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. 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	9.02B	9.38B	9.20B	10.54B	10.48B	8.46B
Gross Profit	2.06B	2.29B	2.06B	2.06B	2.52B	2.00B
EBITDA	1.45B	1.80B	1.81B	1.64B	1.81B	1.31B
Net Income	699.00M	905.00M	894.00M	793.00M	857.00M	478.00M
Balance Sheet
Total Assets	14.98B	15.21B	14.63B	14.67B	15.52B	16.08B
Cash, Cash Equivalents and Short-Term Investments	489.00M	837.00M	548.00M	493.00M	459.00M	564.00M
Total Debt	5.08B	5.02B	4.85B	5.15B	5.16B	5.62B
Total Liabilities	9.14B	9.36B	9.10B	9.43B	9.73B	9.97B
Stockholders Equity	5.77B	5.78B	5.46B	5.15B	5.70B	6.02B
Cash Flow
Free Cash Flow	399.00M	688.00M	546.00M	364.00M	1.04B	1.06B
Operating Cash Flow	1.01B	1.29B	1.37B	975.00M	1.62B	1.46B
Investing Cash Flow	-547.00M	-534.00M	-432.00M	392.00M	-29.00M	-394.00M
Financing Cash Flow	-596.00M	-454.00M	-888.00M	-1.32B	-1.69B	-704.00M

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 68.78 is above the 20-day moving average (MA) of 64.45, above the 50-day MA of 61.51, and above the 200-day MA of 68.68, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 67.61 is Neutral, neither overbought nor oversold. The STOCH value of 80.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMN.

Eastman Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	72 Outperform	$7.85B	11.47	12.24%	5.33%	-3.33%	-19.59%
NEU	68 Neutral	$6.71B	15.28	29.23%	1.59%	-1.11%	5.15%
ESI	65 Neutral	$6.67B	28.43	9.40%	1.25%	3.87%	-10.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	58 Neutral	$18.98B	-99.14	-0.21%	1.10%	-23.92%	90.47%
WLK	56 Neutral	$10.20B	-10.71	-9.48%	2.88%	-5.32%	-1108.29%
AVTR	48 Neutral	$8.22B	-99.01	-1.48%	―	-3.59%	-126.16%