Stock fact sheet · data as of
Eastman Chemical Company (EMN): fair value, margin of safety and Wheel Score
Ticker symbol EMN · Basic Materials · Chemicals - Specialty · United States · Value Income
Is EMN undervalued?
Eastman Chemical Company (EMN) closed at 67.61 on 5 Nov 2026, close to the GLS average fair value of 72.53 (6.8% 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 4.31 while Graham Growth gives 148.43. 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.
Ranked against every other company we cover, EMN is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 57, growth score 6, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
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.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 78.21 | +16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 83.63 | +24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 148.43 | +120% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 51.84 | -23% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.31 | -94% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 104.28 | +54% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 69.76 | +3% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 49.44 | -27% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 62.89 | -7% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -45.28 | -167% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 76.56 | +13% | Analysts' average 12-month price target. Not in the average |
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 4.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
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 6.1%.
The dividend yield is high at 4.97% (payout ratio 59%). 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 Additives And Functional Products 33%, Advanced Materials 32%, Chemical Intermediates 24% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 4.3% |
|---|---|---|---|
| GLS Moat | 4.9 / 10 | ROE | 8.0% |
| Debt / equity | 0.85 | ROA | 3.2% |
| Free-cash-flow yield | 6.1% | Payout ratio | 59% |
| Institutions | 10 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 41: Weak
EMN scores 41 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 5, can repay its debt - 4.5 years to repay its debt (over 3), and the parts are thin too - value weak, premium strong, moat fair, health good, red flags good, option trading fair, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 16,325 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.7M shares a day on a market cap of $7.7B, with a beta of 1.08; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 4.5 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 7% below fair value | |
| Premium | Strong | implied volatility 34% | |
| Moat | Fair | moat 4.9/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Fair | 448 contracts a day, 16,325 open interest | |
| Stability | Good | beta 1.08, $7.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for EMN in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Chemicals - Specialty
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.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AXTA Axalta Coating Systems Ltd. | 37.45 | 47.41 | +21% | 45Weak | $8.0B |
| ESI Element Solutions Inc | 33.44 | 14.06 | -138% | 35Weak | $8.1B |
| WLK Westlake Corporation | 67.90 | 64.66 | -5% | 33Weak | $8.7B |
| NEU NewMarket Corporation | 725.11 | 1,258.36 | +42% | 83Good | $6.7B |
| SOLS Solstice Advanced Materials Inc. | 57.70 | 66.43 | +13% | 47Weak | $9.2B |
| BCPC Balchem Corp | 182.58 | 85.49 | -114% | 30Weak | $5.8B |
| SXT Sensient Technologies Corporation | 125.82 | 89.74 | -40% | 37Weak | $5.4B |
| ALB Albemarle Corporation | 94.97 | 108.03 | +12% | 78Good | $11.2B |
| PRM Perimeter Solutions, Inc. | 28.13 | 1.20 | -2253% | 25Weak | $4.6B |
| AVNT Avient Corporation | 47.86 | 34.80 | -38% | 38Weak | $4.4B |
| RPM RPM International Inc. | 109.05 | 94.12 | -16% | 36Weak | $13.9B |
| CBT Cabot Corp. | 75.10 | 77.10 | +3% | 70Good | $3.9B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about EMN
Is EMN undervalued right now?
Not meaningfully: at 67.61 the stock trades within a few percent of the GLS average fair value of 72.53 (6.8% below fair value, data as of 5 Nov 2026).
What is the Wheel Score of EMN and what does it mean?
EMN scores 41 out of 100 (Weak) - it fails Wheel Trade Filter 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for EMN?
72.53 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Eastman Chemical Company report earnings next?
No upcoming earnings date is recorded for EMN in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does EMN have listed options, and how liquid are they?
Yes. The nightly snapshot found 66 listed contracts with 16,325 open interest across all expiries and implied volatility of 34% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.