Quick Update for Eastman Chemical Company (EMN) Investors

Now trading at a price of $84.15, Eastman Chemical Company has moved -0.2% so far today. In contrast, the S&P 500 index moved 0.0%. Read below for a basic value analysis of Eastman Chemical Company.

Eastman Chemical Company shares moved -24.4% over the last 52 weeks, with a high of $113.34 and a low of $69.91. During this time, the stock lagged the S&P 500 index by -14.0%. As of January 2022, the company's 50-day average price is $85.31. Eastman Chemical Company operates as a specialty materials company in the United States and internationally. The large-cap Industrials company has 14,500 full time employees and is based in Kingsport, TN. It has returned a 3.6% dividend yield over the last 12 months.

Good EPS Growth with Reasonable Leverage Levels:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue $9,273,000 $8,473,000 $10,476,000 $10,580,000
Gross Margins 24.1% 23.3% 23.9% 20.2%
Operating Margins 14.1% 12.9% 13.8% 10.8%
Net Income $759,000 $478,000 $857,000 $793,000
Net Margins 8.19% 5.64% 8.18% 7.5%
Earnings Per Share $5.48 $3.5 $6.25 $6.35
Diluted Shares 138,500 136,500 137,100 119,138
Free Cash Flow $1,079,000 $1,072,000 $1,041,000 $351,000
Capital Expenditures -$425,000 -$383,000 -$578,000 -$624,000
Net Current Assets -$6,655,000 -$6,434,000 -$5,085,000 -$5,653,000
Current Ratio 1.86 1.74 1.56 1.16
Long Term Debt $5,611,000 $5,269,000 $4,412,000 $4,025,000
Net Debt / EBITDA 2.98 3.24 1.95 2.69

Eastman Chemical Company Is Fairly Priced at Current Levels:

Compared to the Industrials sector's average of 20.49, Eastman Chemical Company has a trailing twelve month P/E ratio of 13.3 and, according to its EPS guidance of 8.85, an expected P/E ratio of 9.5. Eastman Chemical Company's PEG ratio is 0.63 based on its 21.0% annual average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.

Furthermore, Eastman Chemical Company is likely undervalued in terms of its equity because its P/B ratio is 1.9 compared to its sector average of 3.78. The company's shares are currently trading 16.0% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 5.39 * 43.395) = $72.54

Eastman Chemical Company Is the Subject of Mixed Market Indicators:

21 analysts are following Eastman Chemical Company and have set target prices ranging from $80.0 to $115.0 per share. On average, they have given the company a rating of buy. At the current price of $84.15, EMN is trading -11.82% away from its average analyst target price of $95.43 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.9% of the company's shares are tied to short positions. Institutions own 86.4% of Eastman Chemical Company's shares, while the insider ownership rate stands at 0.69%. The biggest shareholder is the Vanguard Group, Inc. with a 13% stake in the company worth approximately $1,261,766,076.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.