Eastman Chemical Company (EMN) 10-Year Financial Performance & Capital Metrics

EMN • • Industrial / General

Basic MaterialsSpecialty ChemicalsSpecialty Polymers & PlasticsEngineered Polymers & Composites

AboutEastman 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.Show more

Revenue $9.38B +2.0%
EBITDA $1.89B +18.3%
Net Income $905M +1.2%
EPS (Diluted) 7.67 +2.4%
Gross Margin 24.41% +8.9%
EBITDA Margin 20.09% +15.9%
Operating Margin 14.67% +23.1%
Net Margin 9.65% -0.8%
ROE 15.9% -4.2%
ROIC 10.39% +24.7%
Debt/Equity 0.86 -2.2%
Interest Coverage 6.37 +30.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓11 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 15.6%
✓Healthy dividend yield of 4.6%
✓Trading at only 1.4x book value

✗Weaknesses

✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-0.14%

5Y0.29%

3Y-3.63%

TTM1.58%

Profit (Net Income) CAGR

10Y1.88%

5Y3.58%

3Y1.83%

TTM-5.78%

EPS CAGR

10Y4.43%

5Y6.96%

3Y7.06%

TTM-4.17%

ROCE

10Y Avg10.32%

5Y Avg9.72%

3Y Avg9.86%

Latest11.2%

Peer Comparison

Engineered Polymers & Composites

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
WLKWestlake Corporation	11.33B	88.30	19.03	-3.24%	-8.34%	-9.63%	2.7%	0.48
CMTCore Molding Technologies, Inc.	161.9M	18.91	12.52	-15.47%	3.09%	5.19%	14.59%	0.16
LYBLyondellBasell Industries N.V.	16.38B	50.88	12.26	-1.96%	-3.69%	-11.2%	12.09%	1.03
EMNEastman Chemical Company	8.01B	70.23	9.16	2%	8.96%	14.09%	8.59%	0.86
TSETrinseo PLC	19.8M	0.55	-0.06	-4.41%	-13.15%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	9.56B	8.95B	9.51B	10.12B	9.25B	8.46B	10.48B	10.54B	9.2B	9.38B
Revenue Growth %	0%	-0.06%	0.06%	0.06%	-0.09%	-0.08%	0.24%	0%	-0.13%	0.02%
Cost of Goods Sold+	6.85B	6.49B	7.03B	7.69B	7B	6.46B	7.96B	8.48B	7.14B	7.09B
COGS % of Revenue	0.72%	0.73%	0.74%	0.76%	0.76%	0.76%	0.76%	0.8%	0.78%	0.76%
Gross Profit+	2.71B	2.46B	2.48B	2.43B	2.25B	2B	2.52B	2.06B	2.06B	2.29B
Gross Margin %	0.28%	0.27%	0.26%	0.24%	0.24%	0.24%	0.24%	0.2%	0.22%	0.24%
Gross Profit Growth %	0.22%	-0.09%	0.01%	-0.02%	-0.07%	-0.11%	0.26%	-0.18%	0%	0.11%
Operating Expenses+	985M	913M	956M	956M	925M	880M	1.05B	972M	966M	914M
OpEx % of Revenue	0.1%	0.1%	0.1%	0.09%	0.1%	0.1%	0.1%	0.09%	0.11%	0.1%
Selling, General & Admin	743M	694M	729M	721M	691M	654M	795M	708M	727M	664M
SG&A % of Revenue	0.08%	0.08%	0.08%	0.07%	0.07%	0.08%	0.08%	0.07%	0.08%	0.07%
Research & Development	251M	217M	214M	235M	234M	226M	254M	264M	239M	250M
R&D % of Revenue	0.03%	0.02%	0.02%	0.02%	0.03%	0.03%	0.02%	0.03%	0.03%	0.03%
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	1.72B	1.54B	1.53B	1.47B	1.32B	1.13B	1.47B	1.08B	1.1B	1.38B
Operating Margin %	0.18%	0.17%	0.16%	0.15%	0.14%	0.13%	0.14%	0.1%	0.12%	0.15%
Operating Income Growth %	0.35%	-0.1%	-0.01%	-0.04%	-0.1%	-0.15%	0.31%	-0.26%	0.01%	0.26%
EBITDA+	2.29B	2.12B	2.11B	2.07B	1.93B	1.7B	2.01B	1.56B	1.59B	1.89B
EBITDA Margin %	0.24%	0.24%	0.22%	0.2%	0.21%	0.2%	0.19%	0.15%	0.17%	0.2%
EBITDA Growth %	0.33%	-0.07%	-0.01%	-0.02%	-0.07%	-0.12%	0.18%	-0.22%	0.02%	0.18%
D&A (Non-Cash Add-back)	571M	580M	584M	601M	610M	574M	538M	477M	498M	509M
EBIT	1.41B	1.33B	1.53B	1.54B	1.12B	735M	1.27B	1.16B	1.31B	1.29B
Net Interest Income+	-263M	-255M	-241M	-235M	-218M	-201M	-189M	-182M	-215M	-200M
Interest Income	3M	3M	3M	3M	3M	4M	3M	6M	10M	16M
Interest Expense	266M	258M	244M	238M	221M	205M	192M	188M	225M	216M
Other Income/Expense	-593M	-493M	-238M	-163M	-421M	-595M	-387M	-107M	-9M	-298M
Pretax Income+	1.13B	1.07B	1.3B	1.31B	902M	530M	1.08B	977M	1.09B	1.08B
Pretax Margin %	0.12%	0.12%	0.14%	0.13%	0.1%	0.06%	0.1%	0.09%	0.12%	0.11%
Income Tax+	275M	199M	-177M	226M	140M	41M	215M	181M	191M	170M
Effective Tax Rate %	0.75%	0.81%	1.13%	0.82%	0.84%	0.9%	0.79%	0.81%	0.82%	0.84%
Net Income+	848M	866M	1.47B	1.08B	759M	478M	857M	793M	894M	905M
Net Margin %	0.09%	0.1%	0.15%	0.11%	0.08%	0.06%	0.08%	0.08%	0.1%	0.1%
Net Income Growth %	0.13%	0.02%	0.7%	-0.27%	-0.3%	-0.37%	0.79%	-0.07%	0.13%	0.01%
Net Income (Continuing)	854M	859M	1.39B	1.08B	762M	489M	867M	796M	896M	908M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	80M	76M	77M	75M	74M	85M	84M	83M	72M	73M
EPS (Diluted)+	5.66	5.84	10.09	7.56	5.48	3.50	6.25	6.35	7.49	7.67
EPS Growth %	0.14%	0.03%	0.73%	-0.25%	-0.28%	-0.36%	0.79%	0.02%	0.18%	0.02%
EPS (Basic)	5.71	5.88	10.18	7.65	5.52	3.53	6.35	6.42	7.54	7.75
Diluted Shares Outstanding	149.8M	148.4M	146.1M	142.9M	138.5M	136.5M	137.1M	124.9M	119.4M	117.9M
Basic Shares Outstanding	148.6M	147.3M	144.8M	141.2M	137.4M	135.5M	134.9M	123.5M	118.6M	116.7M
Dividend Payout Ratio	0.28%	0.31%	0.2%	0.29%	0.45%	0.75%	0.44%	0.48%	0.42%	0.42%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	2.88B	2.87B	3.14B	3.37B	3.32B	3.54B	4.65B	3.78B	3.48B	4.1B
Cash & Short-Term Investments	293M	181M	191M	226M	204M	564M	459M	493M	548M	837M
Cash Only	293M	181M	191M	226M	204M	564M	459M	493M	548M	837M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	1.04B	1.21B	1.39B	1.48B	1.38B	1.51B	1.58B	1.28B	1.15B	1.17B
Days Sales Outstanding	39.64	49.41	53.17	53.48	54.27	65.33	55.01	44.24	45.79	45.6
Inventory	1.48B	1.4B	1.51B	1.58B	1.66B	1.38B	1.5B	1.89B	1.68B	1.99B
Days Inventory Outstanding	78.8	78.96	78.34	75.11	86.67	77.93	68.92	81.53	86.08	102.32
Other Current Assets	68M	70M	57M	73M	80M	83M	1.1B	114M	96M	104M
Total Non-Current Assets+	12.73B	12.59B	12.86B	12.63B	12.69B	12.54B	10.87B	10.89B	11.15B	11.11B
Property, Plant & Equipment	5.13B	5.28B	5.61B	5.6B	5.57B	5.55B	5B	5.16B	5.55B	5.62B
Fixed Asset Turnover	1.86x	1.70x	1.70x	1.81x	1.66x	1.53x	2.10x	2.04x	1.66x	1.67x
Goodwill	4.52B	4.46B	4.53B	4.47B	4.43B	4.46B	3.64B	3.66B	3.65B	3.63B
Intangible Assets	2.65B	2.47B	2.37B	2.19B	2.01B	1.79B	1.36B	1.21B	1.14B	1.03B
Long-Term Investments	-928M	-1.21B	-893M	-884M	0	0	0	0	0	0
Other Non-Current Assets	435M	385M	349M	378M	674M	736M	874M	855M	820M	833M
Total Assets+	15.61B	15.46B	16B	15.99B	16.01B	16.08B	15.52B	14.67B	14.63B	15.21B
Asset Turnover	0.61x	0.58x	0.59x	0.63x	0.58x	0.53x	0.68x	0.72x	0.63x	0.62x
Asset Growth %	-0.03%	-0.01%	0.04%	-0%	0%	0%	-0.04%	-0.05%	-0%	0.04%
Total Current Liabilities+	2.06B	1.79B	1.98B	1.85B	1.79B	2.04B	2.97B	3.25B	2.58B	2.71B
Accounts Payable	699M	704M	842M	914M	890M	799M	1.23B	1.32B	1.17B	1.31B
Days Payables Outstanding	37.24	39.59	43.71	43.37	46.41	45.15	56.27	56.78	59.84	67.37
Short-Term Debt	431M	283M	393M	243M	171M	349M	747M	1.13B	541M	450M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	0	0	0	0	0	0
Other Current Liabilities	579M	502M	548M	417M	373M	390M	446M	391M	451M	428M
Current Ratio	1.40x	1.60x	1.59x	1.82x	1.86x	1.74x	1.56x	1.16x	1.35x	1.51x
Quick Ratio	0.68x	0.81x	0.82x	0.96x	0.93x	1.06x	1.06x	0.58x	0.70x	0.78x
Cash Conversion Cycle	81.19	88.78	87.8	85.22	94.53	98.11	67.66	69	72.03	80.54
Total Non-Current Liabilities+	9.53B	9.05B	8.54B	8.27B	8.19B	7.94B	6.76B	6.18B	6.53B	6.65B
Long-Term Debt	6.61B	6.31B	6.15B	5.92B	5.61B	5.27B	4.41B	4.03B	4.3B	4.57B
Capital Lease Obligations	0	0	5M	0	0	0	0	0	0	0
Deferred Tax Liabilities	928M	1.21B	893M	884M	915M	848M	810M	671M	601M	533M
Other Non-Current Liabilities	1.97B	1.54B	1.49B	1.46B	1.66B	1.82B	1.54B	1.48B	1.62B	1.55B
Total Liabilities	11.59B	10.85B	10.52B	10.12B	9.98B	9.97B	9.73B	9.43B	9.1B	9.36B
Total Debt+	7.04B	6.59B	6.54B	6.17B	5.78B	5.62B	5.16B	5.15B	4.85B	5.02B
Net Debt	6.75B	6.41B	6.35B	5.94B	5.58B	5.05B	4.7B	4.66B	4.3B	4.18B
Debt / Equity	1.75x	1.43x	1.17x	1.05x	0.96x	0.92x	0.89x	0.98x	0.88x	0.86x
Debt / EBITDA	3.07x	3.11x	3.10x	2.97x	2.99x	3.31x	2.57x	3.30x	3.04x	2.66x
Net Debt / EBITDA	2.94x	3.02x	3.01x	2.86x	2.89x	2.97x	2.34x	2.98x	2.70x	2.22x
Interest Coverage	6.47x	5.98x	6.26x	6.19x	5.99x	5.49x	7.65x	5.77x	4.87x	6.37x
Total Equity+	4.02B	4.62B	5.57B	5.88B	6.03B	6.11B	5.79B	5.24B	5.53B	5.85B
Equity Growth %	0.12%	0.15%	0.21%	0.06%	0.03%	0.01%	-0.05%	-0.1%	0.06%	0.06%
Book Value per Share	26.84	31.14	38.13	41.13	43.55	44.75	42.22	41.92	46.31	49.64
Total Shareholders' Equity	3.94B	4.54B	5.49B	5.8B	5.96B	6.02B	5.7B	5.15B	5.46B	5.78B
Common Stock	2M	2M	2M	2M	2M	2M	2M	2M	2M	2M
Retained Earnings	5.15B	5.72B	6.8B	7.57B	7.96B	8.08B	8.56B	8.97B	9.49B	10.01B
Treasury Stock	-2.68B	-2.83B	-3.17B	-3.58B	-3.9B	-3.96B	-4.86B	-5.93B	-6.08B	-6.38B
Accumulated OCI	-390M	-281M	-209M	-245M	-214M	-273M	-182M	-205M	-319M	-314M
Minority Interest	80M	76M	77M	75M	74M	85M	84M	83M	72M	73M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.62B	1.39B	1.66B	1.54B	1.5B	1.46B	1.62B	975M	1.37B	1.29B
Operating CF Margin %	0.17%	0.15%	0.17%	0.15%	0.16%	0.17%	0.15%	0.09%	0.15%	0.14%
Operating CF Growth %	0.13%	-0.15%	0.2%	-0.07%	-0.03%	-0.03%	0.11%	-0.4%	0.41%	-0.06%
Net Income	854M	859M	1.39B	1.08B	762M	489M	867M	796M	896M	908M
Depreciation & Amortization	571M	580M	587M	604M	611M	574M	538M	477M	498M	509M
Stock-Based Compensation	0	0	0	0	0	0	0	0	0	0
Deferred Taxes	107M	177M	-394M	-51M	23M	-111M	-38M	-136M	-102M	-52M
Other Non-Cash Items	76M	-138M	-67M	-21M	134M	338M	279M	-175M	-209M	-49M
Working Capital Changes	16M	-93M	143M	-73M	-26M	165M	-27M	13M	291M	-29M
Change in Receivables	114M	-29M	-53M	16M	170M	-31M	-281M	93M	126M	28M
Change in Inventory	-26M	55M	-71M	-224M	-80M	291M	-389M	-430M	201M	-344M
Change in Payables	-102M	7M	123M	90M	-27M	-100M	554M	60M	-190M	188M
Cash from Investing+	-693M	-655M	-643M	-463M	-480M	-394M	-29M	392M	-432M	-534M
Capital Expenditures	-652M	-626M	-649M	-528M	-425M	-383M	-555M	-611M	-828M	-599M
CapEx % of Revenue	0.07%	0.07%	0.07%	0.05%	0.05%	0.05%	0.05%	0.06%	0.09%	0.06%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	-3M	10M	68M	-7M	-10M	-27M	6M	17M	27M
Cash from Financing+	-844M	-838M	-1.01B	-1.04B	-1.04B	-704M	-1.69B	-1.32B	-888M	-454M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-238M	-272M	-296M	-318M	-343M	-358M	-375M	-381M	-376M	-379M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	2M	7M	9M	-6M	-5M	21M	35M	-14M	-24M	27M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	972M	759M	1.01B	1.01B	1.07B	1.06B	1.04B	364M	546M	688M
FCF Margin %	0.1%	0.08%	0.11%	0.1%	0.12%	0.13%	0.1%	0.03%	0.06%	0.07%
FCF Growth %	0.16%	-0.22%	0.33%	0.01%	0.06%	-0.01%	-0.02%	-0.65%	0.5%	0.26%
FCF per Share	6.49	5.11	6.90	7.10	7.75	7.76	7.59	2.91	4.57	5.84
FCF Conversion (FCF/Net Income)	1.92x	1.60x	1.12x	1.43x	1.98x	3.04x	1.89x	1.23x	1.54x	1.42x
Interest Paid	0	0	0	0	0	0	0	0	214M	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	22.28%	20.04%	28.92%	18.87%	12.75%	7.87%	14.41%	14.39%	16.61%	15.9%
Return on Invested Capital (ROIC)	11.91%	10.61%	9.98%	9.31%	8.47%	7.41%	10.18%	7.98%	8.34%	10.39%
Gross Margin	28.32%	27.45%	26.1%	24%	24.31%	23.69%	24.02%	19.52%	22.42%	24.41%
Net Margin	8.87%	9.68%	15.49%	10.67%	8.21%	5.65%	8.18%	7.53%	9.72%	9.65%
Debt / Equity	1.75x	1.43x	1.17x	1.05x	0.96x	0.92x	0.89x	0.98x	0.88x	0.86x
Interest Coverage	6.47x	5.98x	6.26x	6.19x	5.99x	5.49x	7.65x	5.77x	4.87x	6.37x
FCF Conversion	1.92x	1.60x	1.12x	1.43x	1.98x	3.04x	1.89x	1.23x	1.54x	1.42x
Revenue Growth	0.48%	-6.41%	6.36%	6.39%	-8.64%	-8.47%	23.85%	0.5%	-12.69%	2%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Advanced Materials	2.41B	2.46B	2.57B	2.75B	2.69B	2.52B	3.03B	3.21B	2.93B	3.05B
Advanced Materials Growth	-	1.78%	4.68%	7.12%	-2.43%	-6.10%	19.93%	5.95%	-8.57%	4.02%
Additives And Functional Products	2.37B	2.98B	3.34B	3.65B	3.27B	3.02B	3.7B	3.17B	2.83B	2.86B
Additives And Functional Products Growth	-	25.80%	12.22%	9.09%	-10.26%	-7.67%	22.44%	-14.46%	-10.46%	0.99%
Chemical Intermediates	2.39B	2.53B	2.73B	2.83B	2.44B	2.09B	2.85B	3.03B	2.14B	2.13B
Chemical Intermediates Growth	-	6.11%	7.66%	3.78%	-13.71%	-14.45%	36.32%	6.21%	-29.18%	-0.42%
Fibers	1.22B	992M	852M	918M	869M	837M	900M	1.02B	1.29B	1.32B
Fibers Growth	-	-18.62%	-14.11%	7.75%	-5.34%	-3.68%	7.53%	13.56%	26.71%	1.78%
Adhesives And Plasticizers	1.21B	-	-	-	-	-	-	-	-	-
Adhesives And Plasticizers Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
All Foreign Countries	5.55B	5.21B	5.55B	6.03B	5.55B	5.04B	6.08B	5.84B	4.44B	4.54B
All Foreign Countries Growth	-	-6.25%	6.63%	8.70%	-7.96%	-9.31%	20.71%	-3.90%	-23.96%	2.12%
UNITED STATES	4.1B	3.8B	4B	4.12B	3.72B	3.44B	4.4B	4.74B	3.79B	3.77B
UNITED STATES Growth	-	-7.15%	5.15%	2.98%	-9.66%	-7.61%	27.93%	7.76%	-19.92%	-0.55%
Asia Pacific	-	-	-	-	-	-	-	-	974M	1.07B
Asia Pacific Growth	-	-	-	-	-	-	-	-	-	10.16%

Frequently Asked Questions

Valuation & Price

Eastman Chemical Company (EMN) has a price-to-earnings (P/E) ratio of 9.2x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Eastman Chemical Company (EMN) reported $9.29B in revenue for fiscal year 2024. This represents a 29% increase from $7.18B in 2011.

Eastman Chemical Company (EMN) grew revenue by 2.0% over the past year. Growth has been modest.

Yes, Eastman Chemical Company (EMN) is profitable, generating $832.0M in net income for fiscal year 2024 (9.6% net margin).

Dividend & Returns

Yes, Eastman Chemical Company (EMN) pays a dividend with a yield of 4.58%. This makes it attractive for income-focused investors.

Eastman Chemical Company (EMN) has a return on equity (ROE) of 15.9%. This is reasonable for most industries.

Eastman Chemical Company (EMN) generated $409.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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