One-glance verdict
Within fair range
$53.69 our estimate vs market $67.09
Wall Street consensus: $83.00 (54.6% higher than our fair-value estimate)
25% above our estimate
Fundamentals snapshot
Eastman Chemical Company
EMN · NYQ · Basic Materials · Specialty Chemicals
Current price
$67.09
52-week range
$56.11 - $83.47
Market cap
$7.67B
Balance sheet
Watch
4.37x Stretched
Net debt $4.79B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 6.6% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 48.3% above its 5-year average P/E.
- Risk Operating margin compressed from 11.8% to 9.8% over 3 years.
What this company does
Eastman Chemical Company
Eastman Chemical makes specialty chemicals and advanced materials that are used as ingredients in thousands of products, from car parts and electronics to paint and cigarette filters. The company's main business is being a critical part of the supply chain (the network of companies that get a product from raw material to the final customer) for many different industries. Because its customers are so diverse, Eastman's sales are not overly reliant on the success of any single market, which can help make its business more stable.
How the company got here
Eastman Chemical was started in 1920 by George Eastman, the founder of Eastman Kodak, to provide a steady supply of chemicals for his camera and film business. For decades, it operated as a part of Kodak, developing deep expertise in chemicals. In 1994, it was spun off to become its own independent, publicly traded company. Since then, it has grown by acquiring other companies, like Solutia in 2012 and Taminco in 2014, which expanded its offerings into more specialized and higher-value materials.
What it actually does
Eastman is a specialty materials company, which means it creates the advanced ingredients that other companies use to make everyday products. You won't find the Eastman name on a store shelf, but their materials are in things you use daily, like reusable water bottles (made with their Tritan™ plastic), car dashboards, eyeglasses, and even the filters in cigarettes. They essentially take basic raw materials and use complex science to turn them into high-performance materials with specific properties, like being extra tough, clear, or heat-resistant.
Additives & Functional Products
This segment creates specialty ingredients that improve the performance of other products. Think of these as the 'secret sauce' that makes a final product better, even in small amounts. For example, they make additives for paints to make them more durable, chemicals that help tires last longer, and ingredients for personal care products like lotions and cosmetics. This part of the business serves a huge variety of markets, from farming and construction to beauty and wellness.
Advanced Materials
This is where Eastman makes high-performance plastics and films that are used in demanding applications. A well-known product from this division is Tritan™, a tough, clear plastic used in things like blender jars and medical devices. This segment also produces interlayers for safety glass in cars and buildings (under the brand name Saflex™) and protective films for windows. Customers in the transportation, electronics, and medical industries pay for these materials because of their superior strength, clarity, and durability.
Chemical Intermediates
This segment produces more basic chemicals that are often used by Eastman's other divisions or sold to other industrial companies. These are foundational chemical building blocks made at a very large scale. For example, they produce chemicals derived from raw materials like natural gas, which then go into making everything from plasticizers (chemicals that make plastics flexible) to solvents used in industrial processes. This business is important because it provides a reliable supply for Eastman's more specialized businesses.
Fibers
The Fibers segment has a long history and primarily makes cellulose acetate, a material derived from wood pulp. Its biggest use is in making filters for cigarettes. This division also produces specialty acetate yarns for clothing and home furnishings, sold under brands like Naia™, which are valued for their silk-like feel and sustainable origins. While a mature business, it provides a steady stream of revenue for the company.
What management is betting on now
Eastman's biggest bet for the future is on the 'circular economy,' which means reusing and recycling materials instead of throwing them away. They have invested heavily in a new technology called molecular recycling, which can break down hard-to-recycle plastics and turn them back into brand-new materials. The company is also focused on creating more specialty materials for high-growth markets like electric vehicles and medical devices. Their strategy is to sell more high-value, innovative products that solve problems for their customers and are better for the environment.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$252.00M
FY2024 Q3
$276.00M
FY2024 Q4
$361.00M
FY2025 Q1
$-314.00M
FY2025 Q2
$83.00M
FY2025 Q3
$265.00M
FY2025 Q4
$390.00M
FY2026 Q1
$-240.00M
Revenue
$2.18B
Net income
$107.00M
Diluted EPS
0.93
Operating cash flow
$-137.00M
Free cash flow
$-240.00M
Fetching…
Sources
Revenue
$1.97B
Net income
$105.00M
Diluted EPS
0.93
Operating cash flow
$502.00M
Free cash flow
$390.00M
Fetching…
Sources
Revenue
$2.20B
Net income
$47.00M
Diluted EPS
0.40
Operating cash flow
$402.00M
Free cash flow
$265.00M
Fetching…
Sources
Revenue
$2.29B
Net income
$140.00M
Diluted EPS
1.20
Operating cash flow
$233.00M
Free cash flow
$83.00M
Fetching…
Sources
Revenue
$2.29B
Net income
$182.00M
Diluted EPS
1.57
Operating cash flow
$-167.00M
Free cash flow
$-314.00M
Fetching…
Sources
Revenue
$2.25B
Net income
$330.00M
Diluted EPS
2.81
Operating cash flow
$540.00M
Free cash flow
$361.00M
Fetching…
Sources
Revenue
$2.46B
Net income
$180.00M
Diluted EPS
1.53
Operating cash flow
$396.00M
Free cash flow
$276.00M
Fetching…
Sources
Revenue
$2.36B
Net income
$230.00M
Diluted EPS
1.94
Operating cash flow
$367.00M
Free cash flow
$252.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $53.69 vs current price $67.09
Wall Street consensus is the average analyst price target: $83.00 (54.6% higher than our fair-value estimate).
Our most-likely fair value is $53.69 a share — about 20.0% away from today's price of $67.09, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $4.8B. Interest coverage 4.4x.
Net debt
$4.79B
Interest coverage
4.37x
Eastman Chemical Company's profit covers its interest bill about 4.4 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
EMN
BASELINE
Eastman Chemical Company
Total debt $5.45B Interest coverage 4.37x This is the baseline the peer rows are being compared against.
Total debt $12.90B Interest coverage 1.09x -75% vs EMN Carries about 4.0x less debt cushion than EMN.
Total debt $3.22B Interest coverage 2.75x -37% vs EMN Carries about 1.6x less debt cushion than EMN.
Total debt $6.38B Interest coverage -1.23x -100% vs EMN This peer has almost no interest-payment cushion compared with EMN.
Total debt $1.92B Interest coverage 2.06x -53% vs EMN Carries about 2.1x less debt cushion than EMN.
Total debt $3.15B Interest coverage 4.18x -4% vs EMN Has roughly the same debt cushion as EMN.
What you should know
The case for and against EMN
3 Rewards
2 Risks
Rewards
-
Returns 6.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 19.4x P/E vs peer median 21.4x (9.4% cheaper).
Risks
-
Stock trades 48.3% above its 5-year average P/E.
-
Operating margin compressed from 11.8% to 9.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.39x
Forward P/E
9.62x
P/B
1.28x
P/S
0.89x
EV/EBITDA
9.15x
PEG ratio
0.57x
Profitability
How much profit each dollar creates
Gross margin
19.8%
Operating margin
9.8%
Net margin
4.6%
ROE
6.6%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.90x
Current ratio
1.47x
Quick ratio
0.68x
Total debt
$5.45B
Total cash
$666.00M
Growth
How the business has been compounding
Revenue TTM
$8.64B
Revenue 5Y CAGR
-4.4%
EPS TTM
3.46
EPS 5Y CAGR
-13.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.00B
Free CF TTM
$424.00M
FCF margin
4.9%
Dividend
Shareholder payout
Yield
5.0%
Payout ratio
96.5%
Last ex-div date
2026-06-15