# Eastman Chemical (EMN.US)

Canonical: https://gigainvestors.com/s/EMN

Analysis as of: 2026-10-16T07:28:15.815Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $63.87 per share; close as of 2026-10-15.

Estimated value: low $58.79 per share, central $66.27 per share, high $76.24 per share. Buy at or below the central value $66.27 per share. Valuation as of 2026-10-16T07:28:15.815Z; scenarios are not confidence intervals.

Expected annual return: 10.3% at the stated quote. About 10.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.14×

- FY2020: 0.13×

- FY2021: 0.14×

- FY2022: 0.10×

- FY2023: 0.12×

- FY2024: 0.15×

- FY2025: 0.11×

- LTM to Mar 2026: 0.09×

### moat: pass

- ROIC, median of available years: 16.1%

- ROIC, second-lowest year: 14.1%

- Typical minus recent gross margin: 2.9 pp

- Typical gross margin (annual median): 24.0%

- Recent gross margin (lower of latest and 3-year median): 21.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.1%

- ROIC including acquisitions, ten-year median: 7.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 21.1%

- FY2018: 16.7%

- FY2019: 15.7%

- FY2020: 15.7%

- FY2021: 16.5%

- FY2022: 14.4%

- FY2023: 14.1%

- FY2024: 17.6%

- FY2025: 11.4%

- LTM to Mar 2026: 10.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.4B

- Net income, five-year total: $3.9B

- Return on incremental invested capital: -213.9%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.1 pp

- Working capital / revenue, final three-year average: 19.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.85×

- FY2023: 0.63×

- FY2024: 1.00×

- FY2025: 0.93×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.4% vs 14.1%

- Per-share earnings: 5.84 to 7.49 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.6%

- Ordinary dilution, 5-year annual growth: -3.3%

- Market cap gain: -$2.1B

- Cumulative retained earnings: $4.4B

- Diluted shares, 10-year annual growth: -2.6%

- Diluted shares, 5-year annual growth: -3.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.2%

- Per-share value change: $1.65

- Per-share value, starting three-year median: $5.84

- Per-share value, ending three-year median: $7.49

- Buybacks concentrated in cheaper years (correlation): 0.19

- Average buyback yield: 1.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $0

- Cumulative net income, 10 years: $8.6B

- ROIC, first three-year median: 19.4%

- ROIC, last three-year median: 14.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.84

- FY2017: $10.09

- FY2018: $7.56

- FY2019: $5.48

- FY2020: $3.50

- FY2021: $6.25

- FY2022: $6.35

- FY2023: $7.49

- FY2024: $7.68

- FY2025: $4.10

### accounting: pass

- Sloan accruals: -3.3%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.05×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.78×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.4%

- FY2017: -1.1%

- FY2018: -2.9%

- FY2019: -4.7%

- FY2020: -6.1%

- FY2021: -4.9%

- FY2022: -1.2%

- FY2023: -3.3%

- FY2024: -2.5%

- FY2025: -3.3%

## Holders

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 47% since Dec 2021 · "Eastman Chemical cuts global workforce, sees annual profit below estimates on tariff woes" (ca.finance.yahoo.com, Nov 2025) · sales -1.3%

Story as of 2026-10-16T09:58:41.585Z; price observation 2026-10-15.

Price needs cash profits to grow 0.4% a year for ten years

- 2025-04-24: Eastman Chemical forecasts quarterly profit below expectations, cuts spending amid market uncertainty ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/eastman-chemical-forecasts-quarterly-profit-222009941.html))

- 2025-11-03: Eastman Chemical cuts global workforce, sees annual profit below estimates on tariff woes ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/eastman-chemical-cuts-global-workforce-233824964.html))

- 2025-12-04: Should Eastman Chemical’s Weaker Demand Yet Reaffirmed Outlook Reshape EMN’s Risk Narrative for Investors? ([finance.yahoo.com](https://finance.yahoo.com/news/eastman-chemical-weaker-demand-yet-151217316.html))

- 2026-01-30: Eastman Chemical's Q4 Earnings and Sales Lag on Weak Demand ([finance.yahoo.com](https://finance.yahoo.com/news/eastman-chemicals-q4-earnings-sales-125000587.html))

- 2026-05-01: EMN Q1 Earnings Beat Estimates, Revenues Miss on Lower Y/Y Volume ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/emn-q1-earnings-beat-estimates-122900511.html))

- 2026-07-31: EMN Q2 Earnings Beat on Volume Growth and Higher Pricing ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/emn-q2-earnings-beat-volume-152000202.html))

### Sales · FY2025–2026

sales -1.3%; source https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm; observed 2026-02-13.

- FY2017: $9.5B 

- FY2018: $10B 

- FY2019: $9.2B 

- FY2020: $8.5B 

- FY2021: $10B 

- FY2022: $11B 

- FY2023: $9.2B 

- FY2024: $9.4B 

- FY2025: $8.8B 

- FY2026: $8.6B 

### Gross margin · FY2025

gross margin 21.1%; source https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm; observed 2026-02-13.

- FY2016: 27.4% 

- FY2017: 26.1% 

- FY2018: 24.0% 

- FY2019: 24.3% 

- FY2020: 23.7% 

- FY2021: 24.0% 

- FY2022: 19.5% 

- FY2023: 22.4% 

- FY2024: 24.4% 

- FY2025: 21.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 8.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm (filed 2026-02-13); FY2025: revenue 8752000000; grossProfit 1844000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EMN.US: Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, polyvinyl butyral sheets, polyester films and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables end-markets. The company's Chemical Intermediates segment offers olefin and acetyl derivatives, methylamines and salts, higher amines and solvents, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. Eastman Chemical Company was founded in 1920 and is headquartered in Kingsport, Tennessee.

### Why customers stay

Margins ranged from 21.1% to 24.4% during 2023–25; it earns 16.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 22.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 24.4%.

- Source: https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 21.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2016,0.19358680173194118],[2017,0.21134948096885814],[2018,0.1674744970201947],[2019,0.15730560440400643],[2020,0.1569830154436188],[2021,0.16516076040010302],[2022,0.14367611398591887],[2023,0.1411150551791112],[2024,0.1764624795771481],[2025,0.11437713248789046]]; median 0.16123318240205473. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 100 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 626000000; owner earnings 820000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 62000000; upkeep 587000000; owner earnings 1474000000. Growth capex / owner earnings = 0.04206241519674356.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 528000000; owner earnings 1156000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 425000000; owner earnings 945000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 383000000; owner earnings 669000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 40000000; upkeep 538000000; owner earnings 857000000. Growth capex / owner earnings = 0.046674445740956826.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 28888009.79043317; upkeep 595111990.2095668; owner earnings 674888009.7904332. Growth capex / owner earnings = 0.042804153239295956.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 828000000; owner earnings 564000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 90000000; upkeep 509000000; owner earnings 905000000. Growth capex / owner earnings = 0.09944751381215469.

- Source: https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm (filed 2026-02-13); FY2025: growth capex 0; upkeep 546000000; owner earnings 441000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,272000000],[2017,296000000],[2018,318000000],[2019,343000000],[2020,358000000],[2021,375000000],[2022,381000000],[2023,376000000],[2024,379000000],[2025,381000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm (filed 2026-02-13); FY2025: cash repurchases 100000000 USD.

### Are managers owners

Insiders own 0.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EMN.US SharesStats.PercentInsiders = 0.9259999999999999 percentage points; cache date 2026-10-16.

### What could break it

Restrictions on exports to China could cut sales.

- Source: https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm (filed 2026-02-13); ows. Although the Company employs a variety of techniques to mitigate the impact of exchange rate fluctuations, there cannot be a guarantee that such hedging and risk management strategies will be effective, and Eastman's results of operations could be adversely affected.

The U.S. and foreign countries may also adopt or increase restrictions on foreign trade or investment, including currency exchange controls, tariffs or other taxes, or limitations on imports or exports (including recent and proposed changes in U.S. trade policy and resulting retaliatory actions by other countries, including China, which may increasingly reduce demand for and increase costs of impacted products or result in U.S.-based trade counterparties limiting trade with U.S.-based companies or non-U.S. customers limiting their purchases from U.S.-based companies). Certain legal and political risks are also inherent in the operation of a company with Eastman's global scope. For example, it may be more difficult for Eastman to enforce its agreements or collect receivables through foreign legal systems. There is also a risk that foreign governments may nationalize private enterprises in certain countries where Eastman operates. Also, changes in general economic and political conditions in countries where Eastman operates are a risk to the Company's financial performance. As Eastman continues to operate its business globally, its success will depend, in part, on its ability to anticipate and effectively manage and mitigate these and other related risks. There can be no assurance that the consequences of these and other factors relating to its multinational operations will not have an adverse impact on Eastman's business, financial condition, or results of operations.

21

Table of Contents

Risks Related to the Company's Business and Strategy

The Company's business is subject to operating risks common to chemical and specialty materials manufacturing businesses, any of which could disrupt manufacturing operations or related infrastructure and adversely impact results of operations.

As a global specialty materials company, Eastman's business is subject to operating risks common to chemical manufacturing, storage, handling, and transportation, including explosions, fires, inclement weather, natural disasters, mechanical failure, unscheduled downtime, transportation and supply chain interruptions, remediation, chemical spills, and discharges or releases of toxic or hazardous substances or gases. Significant limitation on the Company's ability to manufacture products due to disruption of manufacturing operations or related infrastructure could have a material adverse impact on the Company's sales revenue, costs, results of operations, credit ratings, and financial condition. Disruptions could occur due to internal factors such as computer or equipment malfunction (accidental or int

### What the price says

The price assumes cash profits grow 0.4% yearly over ten years; actual decline was 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate -0.0070580257902383425. Price 63.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.272548581314787 → FY2025 3.814878892733564. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $71.91 per share

- 2016-11: $75.12 per share

- 2016-12: $75.21 per share

- 2017-01: $77.50 per share

- 2017-02: $80.25 per share

- 2017-03: $80.80 per share

- 2017-04: $79.75 per share

- 2017-05: $80.11 per share

- 2017-06: $83.99 per share

- 2017-07: $83.16 per share

- 2017-08: $86.20 per share

- 2017-09: $90.49 per share

- 2017-10: $90.81 per share

- 2017-11: $92.37 per share

- 2017-12: $92.64 per share

- 2018-01: $99.18 per share

- 2018-02: $101.08 per share

- 2018-03: $105.58 per share

- 2018-04: $102.08 per share

- 2018-05: $104.31 per share

- 2018-06: $99.96 per share

- 2018-07: $103.62 per share

- 2018-08: $97.03 per share

- 2018-09: $95.72 per share

- 2018-10: $78.35 per share

- 2018-11: $78.82 per share

- 2018-12: $73.11 per share

- 2019-01: $80.62 per share

- 2019-02: $82.69 per share

- 2019-03: $75.88 per share

- 2019-04: $78.88 per share

- 2019-05: $64.92 per share

- 2019-06: $77.83 per share

- 2019-07: $75.35 per share

- 2019-08: $65.37 per share

- 2019-09: $73.83 per share

- 2019-10: $76.04 per share

- 2019-11: $78.37 per share

- 2019-12: $79.26 per share

- 2020-01: $71.27 per share

- 2020-02: $61.51 per share

- 2020-03: $46.58 per share

- 2020-04: $60.51 per share

- 2020-05: $68.08 per share

- 2020-06: $69.64 per share

- 2020-07: $74.63 per share

- 2020-08: $73.11 per share

- 2020-09: $78.12 per share

- 2020-10: $80.84 per share

- 2020-11: $97.40 per share

- 2020-12: $100.28 per share

- 2021-01: $98.35 per share

- 2021-02: $109.26 per share

- 2021-03: $110.12 per share

- 2021-04: $115.39 per share

- 2021-05: $125.40 per share

- 2021-06: $116.75 per share

- 2021-07: $112.72 per share

- 2021-08: $113.16 per share

- 2021-09: $100.74 per share

- 2021-10: $104.03 per share

- 2021-11: $104.29 per share

- 2021-12: $120.91 per share

- 2022-01: $118.93 per share

- 2022-02: $118.47 per share

- 2022-03: $112.06 per share

- 2022-04: $102.67 per share

- 2022-05: $110.16 per share

- 2022-06: $89.77 per share

- 2022-07: $95.93 per share

- 2022-08: $91.00 per share

- 2022-09: $71.05 per share

- 2022-10: $76.81 per share

- 2022-11: $86.62 per share

- 2022-12: $81.44 per share

- 2023-01: $88.17 per share

- 2023-02: $85.20 per share

- 2023-03: $84.34 per share

- 2023-04: $84.27 per share

- 2023-05: $77.09 per share

- 2023-06: $83.72 per share

- 2023-07: $85.58 per share

- 2023-08: $85.01 per share

- 2023-09: $76.72 per share

- 2023-10: $74.73 per share

- 2023-11: $83.83 per share

- 2023-12: $89.82 per share

- 2024-01: $83.55 per share

- 2024-02: $87.74 per share

- 2024-03: $100.22 per share

- 2024-04: $94.44 per share

- 2024-05: $101.33 per share

- 2024-06: $97.97 per share

- 2024-07: $103.33 per share

- 2024-08: $102.37 per share

- 2024-09: $111.95 per share

- 2024-10: $105.09 per share

- 2024-11: $104.72 per share

- 2024-12: $91.32 per share

- 2025-01: $99.65 per share

- 2025-02: $97.85 per share

- 2025-03: $88.11 per share

- 2025-04: $77.00 per share

- 2025-05: $78.37 per share

- 2025-06: $74.66 per share

- 2025-07: $72.61 per share

- 2025-08: $70.34 per share

- 2025-09: $63.05 per share

- 2025-10: $59.52 per share

- 2025-11: $62.08 per share

- 2025-12: $63.83 per share

- 2026-01: $69.32 per share

- 2026-02: $75.51 per share

- 2026-03: $76.32 per share

- 2026-04: $73.09 per share

- 2026-05: $75.87 per share

- 2026-06: $66.98 per share

- 2026-07: $69.95 per share

- 2026-08: $72.44 per share

- 2026-09: $64.84 per share

- 2026-10: $63.87 per share

## Annual estimated value (USD per share)

- FY2016: low $54.46 per share, central $61.96 per share, high $71.96 per share

- FY2017: low $68.51 per share, central $82.04 per share, high $95.54 per share

- FY2018: low $74.59 per share, central $89.20 per share, high $103.85 per share

- FY2019: low $80.12 per share, central $98.09 per share, high $114.34 per share

- FY2020: low $72.16 per share, central $81.71 per share, high $94.42 per share

- FY2021: low $90.70 per share, central $107.29 per share, high $124.58 per share

- FY2022: low $81.62 per share, central $97.60 per share, high $113.30 per share

- FY2023: low $69.69 per share, central $78.88 per share, high $91.11 per share

- FY2024: low $74.26 per share, central $83.73 per share, high $96.35 per share

- FY2025: low $56.39 per share, central $63.70 per share, high $73.43 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:57.381Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/915389/000091538926000013/emn-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.