One-glance verdict
Within fair range
$64.70 our estimate vs market $62.33
Wall Street consensus: $75.44 (16.6% higher than our fair-value estimate)
4% below our estimate
Fundamentals snapshot
Eastman Chemical Company
EMN · NYQ · Basic Materials · Specialty Chemicals
Current price
$62.33
52-week range
$56.11 - $83.47
Market cap
$7.13B
Balance sheet
Watch
4.37x Stretched
Net debt $4.77B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.3% last year.
- Reward Returns 7.3% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 24.5% above its 5-year average P/E.
What this company does
Eastman Chemical Company
Eastman Chemical Company makes special materials like plastics and chemicals that go into everyday things such as cars, cosmetics, and even cigarette filters. Their money mostly comes from selling these specialized products to businesses in many different industries, which matters because it shows they have a wide reach and aren't dependent on just one type of customer. They are a big player in areas like making paint ingredients and materials for electronics, providing essential components that other companies need to create their final products.
How the company got here
Eastman Chemical Company was founded in 1920 by George Eastman, the founder of Eastman Kodak, to ensure a steady supply of chemicals for Kodak's photographic film. Initially focused on chemicals for photography, Eastman has since evolved into a global specialty materials company. A significant turning point was its spin-off from Eastman Kodak in 1994, allowing it to pursue a broader range of chemical applications beyond photography. Over the decades, Eastman has strategically expanded its portfolio through innovation and acquisitions, transforming into a diversified chemical producer serving numerous industries worldwide.
What it actually does
Eastman Chemical Company creates a wide array of specialty materials that are essential components in countless everyday products. Think of the plastics that make car parts lighter, the coatings that protect surfaces, the ingredients in personal care items, and the fibers used in textiles. These materials are not typically sold directly to consumers but are vital ingredients that other manufacturers use to make the goods we rely on, from electronics and buildings to clothing and food packaging.
Advanced Materials
This segment focuses on high-performance materials that add significant value to end products. It includes specialized plastics like copolyesters and biopolymers, as well as films used in applications such as automotive components, durable goods, and protective coatings for windows. These materials are designed to offer unique properties like durability, clarity, or specific functionalities, catering to industries that require advanced solutions for demanding uses.
Additives & Functional Products
This part of Eastman produces a variety of chemicals that enhance the performance of other products. Examples include ingredients for paints and coatings that improve their application and durability, fluids used in transportation and industrial processes, and components for personal care and agricultural products. These additives are crucial for improving the quality, efficiency, and specific characteristics of a wide range of manufactured goods.
Chemical Intermediates
This segment is a foundational part of Eastman's operations, producing large-volume chemicals that serve as building blocks for many other industries. They supply essential chemicals like solvents and plasticizers, which are used in manufacturing processes for plastics, coatings, and various industrial applications. This business provides the basic chemical components that enable the production of a vast array of other materials and finished goods.
Fibers
Eastman's Fibers segment is primarily known for producing cellulose acetate, a material derived from wood pulp. This segment supplies cellulose acetate tow, which is a key component in cigarette filters, as well as acetate yarns and fibers used in textiles and nonwoven materials. These products find applications in filtration, apparel, and various industrial and consumer goods where specific fiber properties are required.
What management is betting on now
Eastman's management is focused on leveraging its innovation capabilities to drive growth in its specialty businesses, particularly in areas like advanced materials and additives. A key strategy involves expanding its portfolio of sustainable products and solutions, responding to increasing market demand for environmentally friendly materials. The company is also investing in enhancing its manufacturing efficiency and optimizing its operations to improve profitability and maintain a competitive edge in the global chemical market.
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 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
FY2026 Q2
$124.00M
Revenue
$2.51B
Net income
$183.00M
Diluted EPS
1.59
Operating cash flow
$224.00M
Free cash flow
$124.00M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $64.70 vs current price $62.33
Wall Street consensus is the average analyst price target: $75.44 (16.6% higher than our fair-value estimate).
Our most-likely fair value is $64.70 a share — about 3.8% away from today's price of $62.33, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $4.8B. Interest coverage 4.4x.
Net debt
$4.77B
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 2 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 $5.47B Interest coverage 4.37x This is the baseline the peer rows are being compared against.
Total debt $12.40B Interest coverage 1.09x -75% vs EMN Carries about 4.0x less debt cushion than EMN.
Total debt $19.44B Interest coverage 0.18x -96% vs EMN Carries about 23.9x less debt cushion than EMN.
Total debt $3.18B Interest coverage 2.75x -37% vs EMN Carries about 1.6x less debt cushion than EMN.
Total debt $14.33B Interest coverage 1.71x -61% vs EMN Carries about 2.6x less debt cushion than EMN.
Total debt $2.50B Interest coverage -0.27x -100% vs EMN This peer has almost no interest-payment cushion compared with EMN.
What you should know
The case for and against EMN
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.3% last year.
-
Returns 7.3% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 24.5% above its 5-year average P/E.
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)
16.27x
Forward P/E
9.35x
P/B
1.17x
P/S
0.80x
EV/EBITDA
8.60x
PEG ratio
0.59x
Profitability
How much profit each dollar creates
Gross margin
19.7%
Operating margin
12.9%
Net margin
5.0%
ROE
7.3%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.89x
Current ratio
1.50x
Quick ratio
0.72x
Total debt
$5.47B
Total cash
$693.00M
Growth
How the business has been compounding
Revenue TTM
$8.87B
Revenue 5Y CAGR
-4.4%
EPS TTM
3.83
EPS 5Y CAGR
-13.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$991.00M
Free CF TTM
$424.00M
FCF margin
4.8%
Dividend
Shareholder payout
Yield
5.4%
Payout ratio
87.5%
Last ex-div date
2026-09-15