Eastman Chemical (EMN) AI Stock Analysis

• Market Cap: $9.56B
• Dividend Yield: 3.96%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.96
• Revenue Growth: 2.78%
• EPS Growth: 1.50%
• Country: US
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals - Specialty
• EPS (TTM): 1.91
• Shares Outstanding: 115,460,150
• 10 Day Avg. Volume: 1,429,150
• 30 Day Avg. Volume: 1,681,010
• PEG Ratio: 4.47
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.53
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $96.36
• Price Target Upside: 16.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Eastman Chemical's stock receives a score of 68.25. The company demonstrates strong financial performance with efficient cost management and operational efficiency. However, technical indicators point to a bearish trend, which could pose risks in the short term. The stock is attractively valued with a low P/E ratio and a high dividend yield, making it appealing for long-term investors seeking income. Despite strong operational performance, the earnings call revealed challenges from tariffs and destocking, which may impact future growth. Overall, while Eastman Chemical shows potential, there are notable risks and uncertainties to consider.

Positive Factors

Balance Sheet Strength

The company has one of the best balance sheets in the group with net debt/EBITDA expected to remain at 2.4x by year-end.

Cost Reduction

Cost cutting is expected to generate $75m in net savings.

Financial Stability

Eastman is seen as a defensive play within commodity chemicals, given its business portfolio, track record of end-market outgrowth, and idiosyncratic earnings drivers.

Negative Factors

Market Demand

Demand from auto, consumer durable, and construction end markets likely remains soft through the end of the year.

Project Risks

There is increased risk that the flow of funds for the Longview project slows down or the government decides against continuing its financial support.

Tariff Concerns

There are concerns about the impact of tariffs and the uncertainty surrounding the potential impact if current levies remain in place.

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 makes money primarily through the manufacture and sale of specialty chemicals and advanced materials. The company operates through several business segments, including Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers. Revenue is generated from selling products like coatings, adhesives, specialty plastics, and fibers to various industries, including automotive, consumer goods, electronics, and textiles. Significant earnings are derived from long-term supply agreements, research and development partnerships, and a focus on innovation in sustainable and high-performance materials. The company leverages its global production and distribution network to serve a diverse customer base, contributing to consistent revenue streams.

Eastman Chemical Financial Statement Overview

Summary

Eastman Chemical displays strong profitability and operational efficiency, supported by healthy profit margins and a balanced capital structure. The company demonstrates effective use of equity to generate returns, although a slight revenue decline and free cash flow contraction highlight areas for improvement. Maintaining revenue growth and enhancing cash generation will be crucial for sustaining financial health and supporting future investments.

Income Statement

Eastman Chemical's TTM (Trailing-Twelve-Months) gross profit margin stands at 25.06%, indicating solid profitability. The net profit margin is 9.85%, which reflects consistent earnings relative to revenue. Although the revenue has slightly declined by 0.25% from the previous year, the EBIT and EBITDA margins remain strong at 15.30% and 18.84% respectively. These figures suggest effective cost management and operational efficiency. However, the slight revenue decline is a concern that could impact future profitability if not addressed.

Balance Sheet

The company's debt-to-equity ratio is 0.86, which indicates a balanced capital structure with a manageable level of debt. The return on equity (ROE) is 15.70%, reflecting effective use of shareholders' capital to generate profits. Additionally, the equity ratio is 39.22%, suggesting a strong equity position relative to total assets. Overall, the balance sheet demonstrates financial stability with room for leveraging opportunities if needed.

Cash Flow

Eastman Chemical's TTM operating cash flow to net income ratio is 1.23, showing strong cash conversion from profits. The free cash flow to net income ratio is 0.62, indicating a solid ability to generate cash after capital expenditures. However, the free cash flow growth rate declined by 16.28% from the previous period, suggesting potential challenges in maintaining cash reserves. The company needs to focus on improving its free cash flow generation to ensure long-term financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.36B	9.38B	9.21B	10.58B	10.48B	8.47B
	Gross Profit
2.35B	2.29B	2.06B	2.14B	2.50B	1.98B
	EBIT
1.43B	1.30B	1.09B	1.25B	1.88B	968.00M
	EBITDA
1.88B	1.80B	1.81B	1.73B	2.42B	1.54B
	Net Income Common Stockholders
922.00M	905.00M	894.00M	793.00M	857.00M	478.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
418.00M	837.00M	548.00M	493.00M	459.00M	564.00M
	Total Assets
14.97B	15.21B	14.63B	14.67B	15.52B	16.08B
	Total Debt
5.02B	5.02B	4.97B	5.15B	5.16B	5.62B
	Net Debt
4.60B	4.18B	4.42B	4.66B	4.70B	5.05B
	Total Liabilities
9.03B	9.36B	9.10B	9.43B	9.73B	9.97B
	Stockholders Equity
5.87B	5.78B	5.46B	5.15B	5.70B	6.02B
Cash Flow		Free Cash Flow
576.00M	688.00M	541.00M	351.00M	1.04B	1.07B
	Operating Cash Flow
1.14B	1.29B	1.37B	975.00M	1.62B	1.46B
	Investing Cash Flow
-486.00M	-534.00M	-432.00M	392.00M	-29.00M	-394.00M
	Financing Cash Flow
-726.00M	-454.00M	-888.00M	-1.32B	-1.69B	-704.00M

Eastman Chemical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 82.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMN, the sentiment is Neutral. The current price of 82.39 is above the 20-day moving average (MA) of 77.69, below the 50-day MA of 83.56, and below the 200-day MA of 94.87, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EMN.

Eastman Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	68 Neutral	$9.56B	10.54	16.16%	3.96%	2.78%	1.50%
AVTR	66 Neutral	$8.86B	12.69	12.52%	―	-2.64%	173.69%
PPG	63 Neutral	$25.93B	19.35	18.47%	2.35%	-7.67%	-0.58%
WLK	56 Neutral	$10.98B	28.80	3.71%	2.42%	-1.27%	48.34%
ALB	51 Neutral	$7.24B	―	-10.58%	2.62%	-39.34%	-500.52%
Sector *	49 Neutral	$1.98B	-1.10	-21.24%	3.61%	1.31%	-31.23%
SQM	49 Neutral	$9.86B	―	-7.56%	3.79%	-39.35%	-120.09%

Eastman Chemical Corporate Events

Eastman Chemical Announces Leadership Transition Plan

In January 2025, Eastman Chemical‘s Steve Crawford transitioned to Executive Vice President, Methanolysis Operations and Worldwide Engineering and Construction Transformation to oversee the Kingsport Methanolysis facility’s startup. With the successful completion of this project, the company decided to eliminate his position as part of succession planning, effective June 2, 2025. Crawford’s responsibilities will be reassigned to other executives, and he will receive severance benefits for his 41 years of service.

Spark’s Take on EMN Stock

According to Spark, TipRanks’ AI Analyst, EMN is a Neutral.

Eastman Chemical’s stock receives a score of 68.25. The company demonstrates strong financial performance with efficient cost management and operational efficiency. However, technical indicators point to a bearish trend, which could pose risks in the short term. The stock is attractively valued with a low P/E ratio and a high dividend yield, making it appealing for long-term investors seeking income. Despite strong operational performance, the earnings call revealed challenges from tariffs and destocking, which may impact future growth. Overall, while Eastman Chemical shows potential, there are notable risks and uncertainties to consider.

To see Spark’s full report on EMN stock, click here.

Eastman Chemical Announces Severance Agreement with Executive

On March 10, 2025, Eastman Chemical Company entered into a severance agreement with Brad A. Lich, outlining severance benefits in the event of certain employment terminations. The agreement includes a $2 million cash severance payment and up to four months of healthcare coverage, contingent on compliance with restrictive covenants and a release of claims.