Why Are People Talking About Investing in Eastman Chemical Company (EMN)?

Large-cap industrials company Eastman Chemical Company has moved 1.9% this overnight, reaching $80.16 per share. In contrast, the average analyst target price for the stock is $95.67.

Eastman Chemical Company operates as a specialty materials company in the United States and internationally. The company is based in the United States. Eastman Chemical Company currently returns an annual dividend yield of 3.9%.

What to Consider if You Are Thinking of Buying Eastman Chemical Company:

  • Eastman Chemical Company has moved -25.0% over the last year.

  • EMN has a forward P/E ratio of 8.9 based on its EPS guidance of 9.04.

  • Over the last 4 years, earnings per share (EPS) have been growing at a compounded average rate of 0.9%.

  • The company has a price to earnings growth (PEG) ratio of 1.11.

  • Its Price to Book (P/B) ratio is 1.84

Eastman Chemical Company Has a Deteriorating Pattern of Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cashflow ($ k) YoY Growth (%)
2022-12-31 975,000 -624,000 351,000 -66.28
2021-12-31 1,619,000 -578,000 1,041,000 -2.89
2020-12-31 1,455,000 -383,000 1,072,000 -0.65
2019-12-31 1,504,000 -425,000 1,079,000 n/a

Eastman Chemical Company's free cash flows may average out to $885.75 Million over the last 4 years, but its persistently negative year-on-year growth could be a red flag. Indeed, its free cash flow CAGR is -24.5% and its coefficient of variability is 40.3%.

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.