Eastman Chemical Co

Industrials
Major Chemicals
www.eastman.com

Earnings Score
Moat Score
Safety Score

Market Cap $11.37B
PE 13
Debt $5.02B
Cash $837.00M
EV $15.55B
FCF $688.00M

Earnings

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Sales & Net Margins

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Earnings	$905.00M
EBIT	$1.08B
ROE	15%
ROA	7%
FCF	$688.00M
Equity	$5.85B
Growth Stability	44%
PE	12.56
PEG	0.97
PB	1.94
P/FCF	16.53
P/S	1.21
Price/Cash	0.07
Debt/Equity	0.86
Debt/FCF	7.29
Net Margins	10%
Gross Margins	24%
Op. Margins	11%
Earnings CAGR	-4%
Sales Growth YoY	2%
Sales Growth QoQ	-9%
Sales CAGR	0%
FCF CAGR	-7%
Equity CAGR	3%
Earnings Stability	0.08
Earnings Growth YoY	6%
Earnings Growth QoQ	83%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	1%
FCF CAGR 5Y	-21%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	-7%
Sales CAGR 3Y	-7%
FCF CAGR 3Y	9%
Equity CAGR 3Y	2%
Market Cap	$11.37B
Revenue	$9.38B
Dividend Yield	3%
Payout Ratio	42%
Assets	$15.21B
Total Debt	$5.02B
Cash	$837.00M
Shares Outstanding	115.17M
EV	15.55B
Earnings Score	5%
Moat Score	88%
Safety Score	53%
Final Score	49%
Working Capital	1.39B
Current Ratio	1.51
Gross Profit	$2.29B
Shares Growth 3y	-3%
Equity Growth QoQ	2%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2021 revenues of approximately $10.

SEC Filings

Direct access to Eastman Chemical Co (EMN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Eastman Chemical Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Eastman Chemical Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -4%

Stability 8%

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Eastman Chemical Co Discounted Cash Flow

Fully customizable DCF calculator online for Eastman Chemical Co.

Years

Calculation mode

= $4.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$688M	$637M	$591M	$547M	$507M	$470M	$435M	$403M	$373M	$346M	$321M	$3.2B
DCF		$579M	$488M	$411M	$346M	$292M	$246M	$207M	$174M	$147M	$124M	$1.2B
Value	$4.2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	9%	9%	14%	11%	8%	6%	8%	7%	10%	10%	10%
ROA	-	9%	10%	8%	6%	3%	7%	7%	7%	7%	7%
ROE	-	19%	25%	18%	13%	8%	15%	15%	16%	15%	15%

Net Margins (9.65%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	8.69	6.49	6.08	5.36	5.24	4.85	14.15	8.88	7.29	7.29
Debt over Equity	1.75	1.43	1.19	1.05	0.96	0.92	0.89	0.98	0.88	0.86	0.86
Growth Stability	-	-	-	100%	69%	44%	100%	100%	100%	100%	44%

Bad Debt/FCF ratio (7.29)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.86)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (44%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-7%	6%	6%	-9%	-9%	24%	1%	-13%	2%	1%
Earnings YoY growth	-	1%	62%	-22%	-30%	-37%	79%	-7%	13%	1%	13%
Equity YoY growth	-	15%	19%	7%	3%	1%	-5%	-10%	6%	6%	-3%
FCF YoY growth	-	-21%	33%	1%	6%	-1%	-1%	-66%	50%	26%	-21%