Eastman Chemical Co (EMN) Stock Analysis
Verdict: WATCH (do not buy)
Cyclical revenue headwinds and 3.20x leverage drag on sentiment, but cheap 11.6x P/E and a 3.86% dividend limit downside.
Investment score: 58/100
Analysis as of
Is Eastman Chemical Co stock worth reviewing? The TradeMates thesis
The TradeMates model evaluates Eastman Chemical as a value candidate constrained by cyclical end-market soft demand and balance sheet leverage. While its 3.86% yield and 11.57x TTM P/E offer downside cushion, top-line contraction requires clear signs of volume recovery before entering a position.
7-factor investment score
- Valuation: 75/100 (weight 20%)
- Financial Health: 52/100 (weight 15%)
- Technical Momentum: 48/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 60/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 58/100 (weight 15%)
Eastman Chemical Co opportunities and risks
What speaks for EMN
- Deep relative valuation discount at 11.57x TTM P/E compared to sector peers like RPM (18.99x) and AXTA (23.34x).
What speaks against EMN
- Elevated balance sheet leverage with Net Debt/EBITDA of 3.20x and 5.08B USD in total debt.
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| EMN | 11.6x | 0.8x | 8.6x | 20.6% | 7.2% | 6.3% |
| RPM | 19.0x | 1.7x | 12.3x | 41.2% | 8.7% | 5.4% |
| ALB | 21.8x | 1.8x | 8.2x | 25.9% | 11.1% | 12.9% |
| SOLS | 32.4x | 2.5x | 13.2x | 30.9% | 7.8% | 4.1% |
| ESI | 39.4x | 2.3x | 21.3x | 36.6% | 5.9% | 2.2% |
| AXTA | 23.3x | 1.5x | 10.6x | 32.6% | 6.5% | 6.4% |
| Peer median | 23.3x | 1.8x | 12.3x | 32.6% | 7.8% | 5.4% |
Frequently asked questions about Eastman Chemical Co (EMN)
Is EMN stock a good investment?
The TradeMates model rates Eastman Chemical Co as WATCH (do not buy) with an investment score of 58/100. The TradeMates model evaluates Eastman Chemical as a value candidate constrained by cyclical end-market soft demand and balance sheet leverage. While its 3.86% yield and 11.57x TTM P/E offer downside cushion, top-line contraction requires clear signs of volume recovery before entering a position. This is algorithmic model output, not personal investment advice.
Is EMN stock a buy?
The TradeMates model verdict for EMN is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.