Eastman Chemical Co
EMN
Plastic Materials, Synth Resins & Nonvulcan Elastomers
Mkt Cap
$11.87BPE
12.83Debt
$5.08BCash
$499MEV
$16.45BFCF
$521MP/E Ratio
12.83Debt
$5.08BCash
$499MEV
$16.45BFCF
$521MCharts data: {"Earnings":[{"time":"2014-12-30","value":751000000},{"time":"2015-12-30","value":848000000},{"time":"2016-12-30","value":854000000},{"time":"2017-12-30","value":1384000000},{"time":"2018-12-30","value":1080000000},{"time":"2019-12-30","value":759000000},{"time":"2020-12-30","value":478000000},{"time":"2021-12-30","value":857000000},{"time":"2022-12-30","value":793000000},{"time":"2023-12-30","value":894000000}],"Sales":[{"time":"2014-12-30","value":9527000000},{"time":"2015-12-30","value":9648000000},{"time":"2016-12-30","value":9008000000},{"time":"2017-12-30","value":9549000000},{"time":"2018-12-30","value":10151000000},{"time":"2019-12-30","value":9273000000},{"time":"2020-12-30","value":8473000000},{"time":"2021-12-30","value":10476000000},{"time":"2022-12-30","value":10580000000},{"time":"2023-12-30","value":9210000000}],"Net Margins":[{"time":"2014-12-30","value":0.07882859242153878},{"time":"2015-12-30","value":0.087893864013267},{"time":"2016-12-30","value":0.09480461811722914},{"time":"2017-12-30","value":0.14493664258037492},{"time":"2018-12-30","value":0.10639345877253473},{"time":"2019-12-30","value":0.08185053380782918},{"time":"2020-12-30","value":0.056414493095715806},{"time":"2021-12-30","value":0.08180603283696067},{"time":"2022-12-30","value":0.07495274102079395},{"time":"2023-12-30","value":0.09706840390879479}],"Assets":[{"time":"2014-12-30","value":16072000000},{"time":"2015-12-30","value":15611000000},{"time":"2016-12-30","value":15457000000},{"time":"2017-12-30","value":15999000000},{"time":"2018-12-30","value":15995000000},{"time":"2019-12-30","value":16008000000},{"time":"2020-12-30","value":16083000000},{"time":"2021-12-30","value":15519000000},{"time":"2022-12-30","value":14667000000},{"time":"2023-12-30","value":14633000000}],"Stockholders Equity":[{"time":"2014-12-30","value":3590000000},{"time":"2015-12-30","value":4021000000},{"time":"2016-12-30","value":4608000000},{"time":"2017-12-30","value":5480000000},{"time":"2018-12-30","value":5878000000},{"time":"2019-12-30","value":6032000000},{"time":"2020-12-30","value":6108000000},{"time":"2021-12-30","value":5788000000},{"time":"2022-12-30","value":5236000000},{"time":"2023-12-30","value":5530000000}],"ROE":[{"time":"2014-12-30","value":0.20919220055710305},{"time":"2015-12-30","value":0.21089281273315097},{"time":"2016-12-30","value":0.1853298611111111},{"time":"2017-12-30","value":0.25255474452554744},{"time":"2018-12-30","value":0.18373596461381422},{"time":"2019-12-30","value":0.1258289124668435},{"time":"2020-12-30","value":0.07825802226588081},{"time":"2021-12-30","value":0.14806496199032482},{"time":"2022-12-30","value":0.1514514896867838},{"time":"2023-12-30","value":0.1616636528028933}],"ROA":[{"time":"2014-12-30","value":0.07229965156794425},{"time":"2015-12-30","value":0.08865543527000193},{"time":"2016-12-30","value":0.08947402471372194},{"time":"2017-12-30","value":0.09575598474904681},{"time":"2018-12-30","value":0.08190059393560488},{"time":"2019-12-30","value":0.056346826586706644},{"time":"2020-12-30","value":0.03295405086115774},{"time":"2021-12-30","value":0.06972098717700882},{"time":"2022-12-30","value":0.06661212245176246},{"time":"2023-12-30","value":0.07428415225859358}]}
Eastman Chemical Company operates as a specialty materials company in the United States and internationally. The company's Additives & Functional Products segment offers hydrocarbon 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 sheets, and window and protective films 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, and higher amines and solvents; Olefin and acetyl derivatives, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and agrochemicals markets. 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.
DCF
Discounted Cash Flow Valuation of Eastman Chemical Co
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $521M | $483.5M | $448.7M | $416.3M | $386.4M | $358.5M | $332.7M | $308.7M | $286.5M | $265.9M | $246.7M | $2.467B |
| DCF | $420.4M | $339.2M | $273.7M | $220.9M | $178.2M | $143.8M | $116.1M | $93.66M | $75.58M | $60.98M | $609.8M | |
| Value | $2.533B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -3.4%
Earnings Stability 7.3%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 8.8% | 9.5% | 14% | 11% | 8.2% | 5.6% | 8.2% | 7.5% | 9.7% | 10% |
| ROA | 8.9% | 8.9% | 9.6% | 8.2% | 5.6% | 3.3% | 7% | 6.7% | 7.4% | 7.5% |
| ROE | 21% | 19% | 25% | 18% | 13% | 7.8% | 15% | 15% | 16% | 16% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.31%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.12%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +6.36%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.08%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +14.15%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +0.1%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 7.33 | 8.69 | 6.49 | 6.08 | 5.36 | 5.24 | 4.85 | 14.15 | 8.88 | 9.75 |
| Debt Equity | 1.75 | 1.43 | 1.19 | 1.05 | 0.96 | 0.92 | 0.89 | 0.98 | 0.88 | 0.91 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 69% | 44% | 100% | 100% | 100% | 44% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 9.75.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.14.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.44.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 0.32% | -1.9% | 2.8% | -13% | -0.23% |
| Net Income | 0.66% | -3.7% | 23% | 13% | -0.097% |
| Stockholders Equity | 2.6% | -1.2% | -3.3% | 5.6% | -2.5% |
| FCF | -4.6% | -12% | -20% | 50% | -1.2% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -1.93%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.23%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -3.71%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -0.1%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -1.21%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -2.54%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -11.66%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -1.24%.