NYSE
EMN
Last Price
US $66.98
KEY FIGURES
MKT CAP
$8.1B
EPS
TTM
$3.50
PEG
TTM
N/M
P/E
TTM
20.26x
P/S
TTM
0.92x
YIELD
4.74%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
6.77%
Return on equity
ROIC: 5.41%
Valuation History
20.3X
Price to Earnings
EV/EBITDA: 10.8X
Cash flow
Profit margin
0.67%
(FY vs FY)
EBITDA Y/Y
-0.31%
(FY vs FY)
Cash flow Y/Y
-16.73%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $66.98
—
Default assumptions
EBITDA Multiple
Fair Value
Market $66.98
-41.09%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Eastman Chemical Company cash flow to debt ratio of 19.11% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Eastman Chemical Company's free cash flow has decreased -38.37% from $688.00M last year to $424.00M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Eastman Chemical Company's debt to equity ratio is 0.89, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Eastman Chemical Company's debt has decreased relative to shareholder equity from 0.91 last year to 0.89 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Eastman Chemical Company has a net debt to EBITDA ratio of 3.50x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Eastman Chemical Company's interest coverage ratio of 3.79 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Eastman Chemical Company's profit margin has decreased (-52.12%) in the last year from 9.65% to 4.62%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Eastman Chemical Company's short-term assets of $3.65G exceed its short-term liabilities of $2.65G
Decreasing performance - ROA.
Eastman Chemical Company's return on assets of 2.62% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Eastman Chemical Company's return on equity of 6.77%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Eastman Chemical Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Eastman Chemical Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Eastman Chemical Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Eastman Chemical Company has a free cash flow yield of 5.24%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Eastman Chemical Company's yearly earnings has decreased -47.62% since last year from $905.00M to $474.00M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Eastman Chemical Company's yearly revenue has decreased -6.64% since last year from $9.37G to $8.75G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 5.41% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
Eastman Chemical Company's 3-year revenue CAGR of -5.99% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
Eastman Chemical Company had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Eastman Chemical Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Eastman Chemical Company has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Eastman Chemical Company has an earnings yield of 4.95%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Eastman Chemical Company is overvalued relative to its fair value price of 39.46 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Eastman Chemical Company has an EV/EBITDA ratio of 10.78x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Eastman Chemical Company has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Eastman Chemical Company has a price-to-book ratio of 1.34x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Eastman Chemical Company has a price-to-sales ratio of 0.94x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue