Eastman Chemical Current Valuation vs. Return On Asset
| EMN Stock | USD 105.59 1.99 1.92% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.25 | 0.2238 |
|
| |||||
| Operating Profit Margin | 0.088 | 0.1189 |
|
| |||||
| Pretax Profit Margin | 0.069 | 0.118 |
|
|
For Eastman Chemical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eastman Chemical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eastman Chemical utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eastman Chemical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eastman Chemical over time as well as its relative position and ranking within its peers.
Eastman |
Eastman Chemical's Revenue Breakdown by Earning Segment
Check out Investing Opportunities.
Is Diversified Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Eastman Chemical. If investors know Eastman will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Eastman Chemical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.027 | Dividend Share 3.24 | Earnings Share 7.47 | Revenue Per Share 79.642 | Quarterly Revenue Growth 0.087 |
The market value of Eastman Chemical is measured differently than its book value, which is the value of Eastman that is recorded on the company's balance sheet. Investors also form their own opinion of Eastman Chemical's value that differs from its market value or its book value, called intrinsic value, which is Eastman Chemical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Eastman Chemical's market value can be influenced by many factors that don't directly affect Eastman Chemical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Eastman Chemical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eastman Chemical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eastman Chemical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Eastman Chemical Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eastman Chemical's current stock value. Our valuation model uses many indicators to compare Eastman Chemical value to that of its competitors to determine the firm's financial worth. Eastman Chemical is rated below average in current valuation category among its peers. It also is rated below average in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Eastman Chemical is about 333,424,220,220 . As of the 25th of November 2024, Return On Assets is likely to drop to 0.04. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Eastman Chemical's earnings, one of the primary drivers of an investment's value.Eastman Chemical's Earnings Breakdown by Geography
Eastman Current Valuation vs. Competition
Eastman Chemical is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 610.71 Billion. Eastman Chemical holds roughly 16.67 Billion in current valuation claiming about 2.73% of all equities under Materials industry.
Eastman Return On Asset vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Eastman Chemical |
| = | 16.67 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Eastman Chemical |
| = | 0.05 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Eastman Return On Asset Comparison
Eastman Chemical is currently under evaluation in return on asset category among its peers.
Eastman Chemical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eastman Chemical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eastman Chemical will eventually generate negative long term returns. The profitability progress is the general direction of Eastman Chemical's change in net profit over the period of time. It can combine multiple indicators of Eastman Chemical, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -319 M | -334.9 M | |
| Operating Income | 1.1 B | 892.5 M | |
| Income Before Tax | 1.1 B | 712.7 M | |
| Total Other Income Expense Net | -9 M | -9.4 M | |
| Net Income | 894 M | 551.5 M | |
| Income Tax Expense | 191 M | 161.8 M | |
| Net Income Applicable To Common Shares | 912 M | 672.7 M | |
| Net Income From Continuing Ops | 896 M | 849.4 M | |
| Non Operating Income Net Other | -33.3 M | -35 M | |
| Interest Income | 10 M | 9.5 M | |
| Net Interest Income | -215 M | -225.8 M | |
| Change To Netincome | 265.6 M | 173.9 M | |
| Net Income Per Share | 7.54 | 7.91 | |
| Income Quality | 1.54 | 2.88 | |
| Net Income Per E B T | 0.82 | 0.61 |
Eastman Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eastman Chemical. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Eastman Chemical position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Eastman Chemical's important profitability drivers and their relationship over time.
Use Eastman Chemical in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Eastman Chemical position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eastman Chemical will appreciate offsetting losses from the drop in the long position's value.Eastman Chemical Pair Trading
Eastman Chemical Pair Trading Analysis
The ability to find closely correlated positions to Eastman Chemical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eastman Chemical when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Eastman Chemical - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Eastman Chemical to buy it.
The correlation of Eastman Chemical is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Eastman Chemical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eastman Chemical moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Eastman Chemical can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Eastman Chemical position
In addition to having Eastman Chemical in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Basic Utilities Thematic Idea Now
Basic Utilities
Companies involved in production and distribution of electric, gas, water, and other energy utilities. The Basic Utilities theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Basic Utilities Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Investing Opportunities. To learn how to invest in Eastman Stock, please use our How to Invest in Eastman Chemical guide.You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Eastman Chemical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eastman Chemical at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Eastman Chemical's income statement, its balance sheet, and the statement of cash flows.