Eastman Chemical Company Common Stock (EMN)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Eastman Chemical is a cyclical specialty materials company, not a wide-moat franchise. Its products serve transportation, personal care, agriculture and other end markets, which gives diversification but also ties results to the economic cycle. FairStock's Lynch category is CYCLICAL — Specialty Chemicals, and that fits: earnings follow the economic cycle. The filed numbers show why I am cautious: in FY2025, revenue was $8.8B, net income $474.0M and diluted EPS $4.10, down from FY2024 revenue of $9.4B, net income $905.0M and diluted EPS $7.67. Yet the most recent filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $2.5B, net income of $183.0M and diluted EPS of $1.59, better than fiscal Q2 2025 revenue of $2.3B, net income of $140.0M and diluted EPS of $1.20. So there may be an upturn, but one quarter does not make a trend. Financial quality is mixed. FairStock calculates ROE of 7.33% and ROCE of 3.55%, both modest, with debt-to-equity of 0.89 and an Altman Z-Score of 1.69, which is not a fortress balance sheet. The Piotroski F-Score is 4/9. On valuation, at the 2026-10-13 close of $63, the P/E is 16.41, P/B is 1.18 and EV/EBITDA is 9.89. The Graham Number is $67.38, leaving only a 6.50% margin of safety. Free cash flow was $498.0M, a 6.9% FCF yield, and the dividend yield is 5.11%, which offers some support. I would want a wider discount and evidence that returns on capital are recovering before calling this a compelling value. It is a fair-weather cyclical at a fair-to-slightly-cheap price.

In plain English: Eastman Chemical makes specialty chemicals and materials used in transportation, personal care, agriculture, and other industries. Sales and profits fell in fiscal 2025, and the balance sheet looks only moderate, but the latest reported quarter was stronger than the year-earlier quarter. At the 2026-10-13 close of $63, the shares look roughly fair to mildly cheap against the company's earnings and book value, assuming the chemical cycle improves.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer