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EMNEastman Chemical Company
$68.90$7.9B
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  4. Financial Ratios

Eastman Chemical Company (EMN) Financial Ratios

Latest Ratios: P/E Ratio 16.8x · EV/EBITDA 8.6x · ROE 8.0%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

EMN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$7.9B$7.4B$10.8B$10.7B$10.2B$16.6B$13.7B$11.0B$10.4B$13.5B$11.2B
Enterprise Value$12.4B$11.9B$15.2B$15.3B$14.8B$21.6B$18.7B$16.6B$16.4B$19.9B$17.6B
P/E Ratio →16.8015.5711.9111.9912.8319.3528.6514.469.679.1812.88
P/S Ratio0.900.841.151.170.971.581.621.191.031.421.25
P/B Ratio1.321.221.841.941.942.862.241.821.782.432.42
P/FCF18.5817.4015.6519.6427.9415.9212.9310.2310.2913.4314.71
P/OCF8.127.618.377.8110.4310.249.417.306.778.178.06

P/E links to full P/E history page with 30-year chart

EMN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.361.621.661.412.062.211.791.622.091.96
EV / EBITDA8.588.238.069.619.5010.7811.038.567.909.428.28
EV / EBIT13.3115.3211.7411.7012.8016.9925.5014.8210.6213.0113.17
EV / FCF—28.0422.0828.0540.7420.7917.7015.4316.1519.7323.15

EMN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin21.1%21.1%24.4%22.4%19.5%24.0%23.7%24.3%24.0%26.1%27.4%
Operating Margin10.6%10.6%14.7%11.9%10.3%14.0%13.3%14.3%14.6%16.1%17.2%
Net Profit Margin5.4%5.4%9.6%9.7%7.5%8.2%5.6%8.2%10.7%15.5%9.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE8.0%8.0%15.9%16.6%14.4%14.4%7.9%12.7%18.9%28.9%20.0%
ROA3.2%3.2%6.1%6.1%5.3%5.4%3.0%4.7%6.8%9.4%5.6%
ROIC6.7%6.7%10.1%8.2%7.8%10.0%7.4%8.5%9.3%10.0%10.6%
ROCE7.5%7.5%11.2%9.3%9.0%11.0%8.0%9.3%10.5%11.0%11.3%

EMN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.840.840.900.930.980.950.920.961.051.171.43
Debt / EBITDA3.523.522.793.223.302.753.312.992.973.103.11
Net Debt / Equity—0.750.760.830.890.870.830.921.011.141.39
Net Debt / EBITDA3.123.122.352.882.982.522.972.892.863.013.02
Debt / FCF—10.646.438.4112.804.864.775.205.856.308.45
Interest Coverage3.733.735.995.826.166.643.595.056.486.265.17

EMN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.371.371.511.351.161.561.741.861.821.591.60
Quick Ratio0.630.630.780.700.581.061.060.930.960.820.81
Cash Ratio0.210.210.310.210.150.150.280.110.120.100.10
Asset Turnover—0.590.620.630.720.680.530.580.630.590.58
Inventory Turnover3.493.493.574.244.485.304.684.214.864.664.62
Days Sales Outstanding—41.6645.6045.7944.2455.0165.3354.2753.4853.1749.41

EMN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield4.8%5.2%3.5%3.5%3.7%2.3%2.6%3.1%3.0%2.2%2.4%
Payout Ratio80.4%80.4%41.9%42.1%48.0%43.8%74.9%45.2%29.4%20.1%31.4%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield6.0%6.4%8.4%8.3%7.8%5.2%3.5%6.9%10.3%10.9%7.8%
FCF Yield5.4%5.7%6.4%5.1%3.6%6.3%7.7%9.8%9.7%7.4%6.8%
Buyback Yield1.3%1.4%2.8%1.4%9.9%6.0%0.4%3.0%3.8%2.6%1.3%
Total Shareholder Yield6.1%6.5%6.3%4.9%13.6%8.3%3.1%6.1%6.9%4.8%3.7%
Shares Outstanding—$116M$118M$119M$125M$137M$137M$139M$143M$146M$148M

Key Metrics

Growth RegimeDecelerating
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Cyclical volume and margin compression

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Market Pricing Reflects Cyclical Uncertainty

According to current market data, EMN trades at a forward P/E of 11.07, which, when compared to its TTM P/E of 17.25, suggests that investors are pricing in a recovery in earnings that may be contingent on the successful scaling of its circular economy initiatives.

The current P/S ratio of 0.92 indicates that the market is valuing the company closer to a commodity-linked producer than a high-margin specialty chemical firm. This valuation gap warrants further investigation into whether the market is correctly discounting the long-term potential of the Tritan brand against the cyclical headwinds currently impacting the broader chemical sector.

Capital Efficiency Under Cyclical Pressure

Based on reported financial statements, EMN's ROIC has trended downward to 1.8% in 2026Q1, a significant contraction from historical levels that highlights the difficulty of generating adequate returns on invested capital during periods of high capital expenditure and softening demand for specialty polymers.

The decline in ROIC appears to be driven by both margin compression and the heavy capital intensity required for the company's molecular recycling facilities. Investors should monitor whether these returns can rebound as the Kingsport facility moves from the construction phase into full-scale revenue generation.

Working Capital Volatility Hinders Efficiency

As indicated by quarterly data, the company's DIO has remained elevated at 105 days in 2026Q1, which, when compared to historical averages, suggests that inventory management remains a significant challenge in the current environment of persistent revenue contraction and shifting demand for specialty materials.

The fluctuation in the cash conversion cycle reflects the company's struggle to align production volumes with volatile end-market demand. This inefficiency in working capital management may continue to weigh on free cash flow until the company can better synchronize its supply chain with the cyclical nature of its core segments.

Liquidity Buffer Supports Operational Resilience

Based on EMN's reported figures, the current ratio of 1.47 in 2026Q1 provides a stable liquidity cushion, which appears sufficient to navigate the current period of revenue volatility and the ongoing financial requirements of its large-scale capital projects in the circular economy space.

While the quick ratio of 0.71 suggests a reliance on inventory to meet short-term obligations, the company's overall liquidity position remains healthy relative to its peers. This buffer is critical for maintaining operational continuity during planned maintenance turnarounds and periods of raw material price volatility.

Misapplication of Debt-to-Equity Ratios

The reported debt-to-equity ratio of 0.84% is frequently misapplied by analysts as a sign of extreme balance sheet strength, yet this figure likely obscures the true leverage profile of a capital-intensive industrial firm when legacy pension and post-retirement obligations are excluded from the calculation.

Investors should instead focus on net debt-to-EBITDA or interest coverage ratios to gain a more accurate picture of the company's financial flexibility. Relying solely on the D/E ratio may lead to an underestimation of the risks associated with the company's significant long-term liabilities and capital-intensive growth strategy.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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EMN — Frequently Asked Questions

Quick answers to the most common questions about buying EMN stock.

What is Eastman Chemical Company's P/E ratio?

Eastman Chemical Company's current P/E ratio is 16.8x. The historical average is 18.2x. This places it at the 71th percentile of its historical range.

What is Eastman Chemical Company's EV/EBITDA?

Eastman Chemical Company's current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.

What is Eastman Chemical Company's ROE?

Eastman Chemical Company's return on equity (ROE) is 8.0%. The historical average is 16.1%.

Is EMN stock overvalued?

Based on historical data, Eastman Chemical Company is trading at a P/E of 16.8x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Eastman Chemical Company's dividend yield?

Eastman Chemical Company's current dividend yield is 4.78% with a payout ratio of 80.4%.

What are Eastman Chemical Company's profit margins?

Eastman Chemical Company has 21.1% gross margin and 10.6% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Eastman Chemical Company have?

Eastman Chemical Company's Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.