Skip to Content
Morningstar
Get 14 Days Free

Eastman Chemical Co EMN

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Maintaining $125 FVE as Eastman Reports Solid Q3 Results; Shares Slightly Undervalued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

Eastman reported solid third-quarter results with adjusted EBIT up 44% versus the prior-year quarter. The results were consistent with our outlook for 2021 that Eastman will benefit from strong demand and higher pricing. Amid rising input costs, management narrowed its 2021 adjusted EPS guidance from a range of $8.80-$9.20 per share to a range of $8.80-$9.00. However, we had expected Eastman's 2021 adjusted EPS to come in closer to $9.00 due to rising input costs. As such, our outlook is largely unchanged. Having updated our model to incorporate third-quarter results, we maintain our Eastman fair value estimate of $125 per share. Our narrow-moat rating also is intact.

Read Full Analysis

Company Profile

Business Description

Established in 1920 to produce chemicals for Eastman Kodak, Eastman Chemical has grown into a global specialty chemicals with manufacturing sites around the world. The company generates the majority of its sales outside of the United States, with a strong presence in Asian markets. During the past several years, Eastman has sold noncore businesses, choosing to focus on higher-margin specialty product offerings.

Contact
200 South Wilcox Drive
Kingsport, TN, 37662
T +1 423 229-2000
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 14,500

Related

Stock Strategist Industry Reports
Demand for Electric Vehicles Accelerates
Cost and performance parity will drive consumer interest.
Laura Lallos
Market Update
Which Sectors Saw the Biggest Valuation Boosts?
Three sectors saw the most fair value increases after the first-quarter earnings season.
Jakir Hossain
Premium Article
32 High-Quality Stocks Now in Buying Range
These names all slid into 4-star range after yesterday’s stock-market sell-off.
Susan Dziubinski
Credit Insights
Credit Market Weakness Exacerbated by Gross' Departure From PIMCO
Widening high-yield spreads will start to attract investors.
David Sekera
Quarter-End Insights
Our Outlook for Basic Materials Stocks
The prospect of Chinese fiscal stimulus has taken center stage for basic materials shares, but we doubt anything on the scale of the 2008-09 package is in the cards.
Daniel Rohr
Quarter-End Insights
Our Outlook for Basic Materials Stocks
Basic materials have fallen down the rabbit hole.
Elizabeth Collins
Quarter-End Insights
Our Outlook for Basic Materials Stocks
With demand weakening, input cost relief is the only hope for many basic materials companies in the first quarter of 2012.
Elizabeth Collins
Quarter-End Insights
Our Outlook for Basic Materials Stocks
The near term will surely be bumpy, but valuations look prettier today than they have in years.
Elizabeth Collins
Stock Strategist Industry Reports
The Curious Chemistry of the Chemicals Business
Economic moats are tough to come by in this capital-intensive industry.
Morningstar Analysts
Quarter-End Insights
Look Forward to More Buying Opportunities in Basic Materials
As second-quarter earnings season starts, we'll be on the lookout for more profit warnings and disappointments on a host of issues.
Elizabeth Collins
Quarter-End Insights
Our Outlook for Basic Materials Stocks
Supply and demand should eventually respond to today's high commodity prices.
Elizabeth Collins
Stock Strategist Industry Reports
Rising Commodity Prices Help Agriculture, Harm Chemicals
With commodity prices rising, agriculture companies benefit and chemical firms get squeezed.
Jeffrey Stafford
Stock Strategist Industry Reports
What Do Earnings Tell Us About Chemicals and Agriculture?
Strengthening demand and improved cost structures boost profitability for many players.
Elizabeth Collins
Stock Strategist Industry Reports
Chemical Industry's 2010 Outlook Mixed
Recovering demand will likely be overshadowed by new capacity coming on line.
Elizabeth Collins
Stock Strategist Industry Reports
The Chemical Industry Is under Pressure
Will the chemical industry survive both a glut in supply and a terrible economy?
Annie Sorich
Stock Strategist
Eighteen Five-Star Stocks from World-Class Investors
We uncover gems in the public filings of Alleghany and Leucadia National.
Justin Fuller