$106.71
arrow_drop_up1.18%Is EMN a Buy or Sell based on AI Analysis?
Fundamental Analysis
Eastman Chemical Co (EMN) has a solid dividend yield of 3.72%, which is attractive for income investors. The company also has a low price-to-book ratio of 1.87, indicating that the stock may be undervalued compared to its book value. Additionally, Eastman Chemical Co has a healthy return on equity of 16.65%, showing effective management of shareholder funds. On the flip side, the company's price-to-cashflow ratio of 7.53 suggests that it may be generating less cash flow relative to its market value. Finally, the company's debt-to-equity ratio of 0.92 indicates a moderate level of leverage, which could be a potential risk factor for investors. Overall, Eastman Chemical Co's fundamental analysis presents a mixed picture. While the company's strong dividend yield, low price-to-book ratio, and healthy return on equity are positive indicators, the lower price-to-cashflow ratio and moderate debt-to-equity ratio suggest some areas of concern. Investors may want to consider these factors alongside market conditions and industry trends before making investment decisions in Eastman Chemical Co.
Positive Development
Eastman Chemical Company has seen a consistent increase in its stock price over the past few months, indicating a positive sentiment among investors. The company has announced an off-list price increase for some of its products, which could indicate a positive outlook for future sales and revenue growth. The company has also increased its EODs prices on March 1, 2024, which could further boost sales and revenue.
Negative Development
Eastman Chemical Company's stock has underperformed in comparison to its competitors, indicating potential weakness in the company's market position. The company's stock price has shown volatility, with significant fluctuations in recent weeks. The company's basic financials indicate a relatively high level of long-term debt, which could be a concern for investors.
Technical Analysis
Eastman Chemical Co (EMN) has a technical rating of "NEUTRAL" based on various indicators such as ATR, RSI, MACD, CCI, ADX, WILLR, and ROC. The stock has a beta of 1.54 and a trailing PE ratio of 11.63. The stock's price has shown a positive trend over the past seven days with a price change of 2.38% and is currently trading at $88.21. The company's fifty-two-week price change percent is 4.99%, with a high of $91.38 and a low of $68.89. Additionally, the stock sector is categorized as "Basic Materials" with a stock sector change of 28.55% in the past year. On the technical front, Eastman Chemical Co's technical analysis indicates a mixed sentiment among analysts and investors. While there is one technical buy indicator (ATR), there are six technical hold indicators (RSI, MACD, CCI, ADX, WILLR, and ROC) and one technical sell indicator (STOCHRSI) for the month. The company's market scores are average, with a market score of 58 and benchmark scores ranging from 39 to 53. Despite this, the stock has a strong market ownership score of 86 and industry ownership score of 86, indicating a high level of institutional and insider ownership. Overall, Eastman Chemical Co presents a balanced technical outlook with room for potential growth based on market and industry metrics.
Conclusion and recommendation
Based on the data provided, Eastman Chemical Co (EMN) appears to be a solid investment opportunity. With a market capitalization of $10.35 billion and a dividend yield of 3.72%, the company offers a stable dividend income for investors. Furthermore, Eastman Chemical Co has a strong financial position, reflected in its low debt-to-equity ratio of 0.92 and healthy free cash flow margin of 5.88%. The company also has a respectable return on equity of 16.65% and a solid operating margin of 7.57%. Additionally, Eastman Chemical Co's stock has shown steady growth over the years, with a one-month price change percent of 6.89% and a five-year price change percent of 6.15%. In conclusion, Eastman Chemical Co presents a promising investment opportunity for investors looking for stable income and long-term growth potential. The company's strong financial position, healthy dividend yield, and consistent stock performance make it an attractive option in the basic materials sector. With its solid fundamentals and positive market outlook, Eastman Chemical Co is well-positioned to deliver value to shareholders in the long run. Investors may want to consider adding Eastman Chemical Co to their portfolio for diversification and potential capital appreciation.