Eastman Chemical Company (EMN): fair value, margin of safety and Wheel Score

Is EMN undervalued?

Eastman Chemical Company (EMN) closed at 63.87 on 16 Oct 2026, close to the GLS average fair value of 64.37 (0.8% below fair value). 5 of the 9 models that produced a number sit above the price, 4 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.

The 9 models disagree widely: GLS Growth gives 2.64 while 10 Cap gives 134.63. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files EMN under High Yield Income: a dividend yield above 4%.

Nine valuation models for EMN

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health EMN scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 4.3%, ROE 8.0%, ROA 3.2% - with debt at 0.85 times equity and a free-cash-flow yield of 7.4%.

The dividend yield is high at 5.26% (payout ratio 86%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Advanced Materials 33%, Additives And Functional Products 32%, Chemical Intermediates 26% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 7 Oct 2026.

Wheel Score 73: Good

EMN scores 73 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 13/25), Piotroski health (16/20), the GLS moat (5/15), the option premium on offer (20/20) and how easily the stock trades (19/20). Moat (5/15) is the part holding the score back.

Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 13,957 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 2.3M shares a day on a market cap of $7.3B, with a beta of 1.08; the Stability part of the Wheel Score gives that 19 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Eastman Chemical Company reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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The 12 companies below are the closest to Eastman Chemical Company by market cap within the Chemicals - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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