Eastman Chemical Company logged a -0.8% change during today's afternoon session, and is now trading at a price of $80.11 per share.
Eastman Chemical Company returned losses of -20.9% last year, with its stock price reaching a high of $112.78 and a low of $69.91. Over the same period, the stock underperformed the S&P 500 index by -24.0%. As of April 2023, the company's 50-day average price was $82.12. Eastman Chemical Company operates as a specialty materials company in the United States and internationally. Based in Kingsport, TN, the large-cap Industrials company has 14,500 full time employees. Eastman Chemical Company has offered a 3.8% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $9,273 | $8,473 | $10,476 | $10,580 |
| Gross Margins | 24.1% | 23.3% | 23.9% | 20.2% |
| Operating Margins | 14.1% | 12.9% | 13.8% | 10.8% |
| Net Margins | 8.19% | 5.64% | 8.18% | 7.5% |
| Net Income (MM) | $759 | $478 | $857 | $793 |
| Net Interest Income | -$218,000 | -$210,000 | -$198,000 | -$182,000 |
| Depreciation & Amort. | -$611,000 | -$574,000 | -$538,000 | -$477,000 |
| Earnings Per Share | $5.48 | $3.5 | $6.25 | $5.67 |
| EPS Growth | n/a | -36.13% | 78.57% | -9.28% |
| Diluted Shares (MM) | 138 | 136 | 137 | 119 |
| Free Cash Flow (MM) | $1,079 | $1,072 | $1,041 | $351 |
| Capital Expenditures (MM) | -$425 | -$383 | -$578 | -$624 |
| Net Current Assets (MM) | -$6,655 | -$6,434 | -$5,085 | -$5,653 |
| Current Ratio | 1.86 | 1.74 | 1.56 | 1.16 |
| Long Term Debt (MM) | $5,611 | $5,269 | $4,412 | $4,025 |
| Net Debt / EBITDA | 3.23 | 3.88 | 2.6 | 2.85 |
Eastman Chemical Company has growing revenues and increasing reinvestment in the business, wider gross margins than its peer group, and average operating margins with a negative growth trend. However, Eastman Chemical Company has EPS growth acheived by reducing the number of outstanding shares, a deteriorating pattern of cash flows, and a highly leveraged balance sheet. Finally, we note that Eastman Chemical Company has just enough current assets to cover current liabilities.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Eastman Chemical Company has a trailing twelve month P/E ratio of 14.5, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $9.04, the company has a forward P/E ratio of 9.1. The 10.5% compound average growth rate of Eastman Chemical Company's historical and projected earnings per share yields a PEG ratio of 1.38. This implies that the shares are fairly valued. In contrast, the market is likely undervaluing Eastman Chemical Company in terms of its equity because its P/B ratio is 1.84 while the sector average is 3.78. The company's shares are currently trading 12.0% above their Graham number.
Eastman Chemical Company Has an Average Rating of Buy:
The 21 analysts following Eastman Chemical Company have set target prices ranging from $80.0 to $115.0 per share, for an average of $95.67 with a buy rating. As of April 2023, the company is trading -14.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Eastman Chemical Company has a very low short interest because 1.9% of the company's shares are sold short. Institutions own 86.2% of the company's shares, and the insider ownership rate stands at 0.69%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 13% stake in the company is worth $1,201,189,296.
