Eastman Chemical CompanyEMN
NYSE•Basic Materials•Specialty Chemicals
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.
Eastman Chemical Company (EMN) reported trailing twelve months revenue of $8.64B as of March 2026, a 7.7% decline year-over-year. Quarterly revenue reached $2.18B, reflecting a contraction in sales.
Eastman Chemical Company generated $399.00M in TTM net income, with quarterly EBITDA of $324.00M. The operating margin contracted from 13.9% to 8.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (8.9%) and net margin (4.9%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 7.9% a year ago, reflecting increased costs or interest expense.
EMN trades at a P/E of 21.5x (in line with broad market averages) and a P/S of 1.0x. The price-to-book ratio of 1.4x reflects a moderate premium to book value.
The company reported negative free cash flow of $-240.00M, indicating cash consumption over the period. The balance sheet shows $15.22B in total assets with $4.45B in long-term debt against $6.01B in stockholders equity for a debt-to-equity ratio of 0.7. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~11.8% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~13.0% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 35.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.7 — conservative capital structure with low financial risk.
Revenue declined in 5 of the last 7 quarters — persistent contraction signals a fundamental problem.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares decreased 2.6% — net buybacks are reducing shares outstanding and boosting per-share value.