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EMN vs ESI

EMN
Eastman Chemical Company
BEARISH
Price
$72.00
Market Cap
$8.23B
Sector
Basic Materials
AI Confidence
85%
ESI
Element Solutions Inc
BEARISH
Price
$40.34
Market Cap
$9.83B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
EMN
17.56
ESI
51.06
Forward P/E
EMN
10.52
ESI
20.16
P/B Ratio
EMN
1.38
ESI
3.66
P/S Ratio
EMN
0.94
ESI
3.85
EV/EBITDA
EMN
8.71
ESI
22.17

Profitability

Gross Margin
EMN
21.09%
ESI
41.96%
Operating Margin
EMN
7.2%
ESI
10.31%
Profit Margin
EMN
5.42%
ESI
7.48%
ROE
EMN
7.99%
ESI
7.51%
ROA
EMN
3.98%
ESI
4.29%

Growth

Revenue Growth
EMN
-12.1%
ESI
8.3%
Earnings Growth
EMN
-67.5%
ESI
-88.8%

Financial Health

Debt/Equity
EMN
0.84
ESI
0.64
Current Ratio
EMN
1.37
ESI
3.68
Quick Ratio
EMN
0.59
ESI
2.66

Dividends

Dividend Yield
EMN
4.64%
ESI
0.79%
Payout Ratio
EMN
81.22%
ESI
40.51%

AI Verdict

EMN BEARISH

Eastman Chemical Company exhibits significant fundamental deterioration, highlighted by a Piotroski F-Score of 4/9 (Stable but weak) and a severe earnings collapse of -67.5% YoY. While the current price of $72.00 sits near the Graham Number ($69.44), it trades at a massive premium to its growth-based intrinsic value of $28.70. The combination of negative revenue growth, a high dividend payout ratio (81.22%), and a bearish technical trend (0/100) suggests the stock is overvalued relative to its current trajectory.

Strengths
Current price is trading close to the Graham Number defensive fair value
Reasonable Debt/Equity ratio of 0.84
Healthy Current Ratio of 1.37
Risks
Severe earnings contraction (-67.5% YoY) and revenue decline (-12.1% YoY)
Unsustainable dividend payout ratio (81.22%) given the earnings crash
Extremely high PEG ratio (3.51) indicating overvaluation relative to growth
ESI BEARISH

ESI presents a stark disconnect between market sentiment and deterministic fundamentals, characterized by a stable Piotroski F-Score of 4/9 but severe overvaluation. The current price of $40.34 trades at a massive premium to both the Graham Number ($13.99) and the growth-based Intrinsic Value ($5.53). While analyst consensus remains a 'strong_buy' and price momentum is high, heavy insider selling by the CEO and CFO, combined with a trailing P/E of 51.06, suggests the stock is significantly overpriced.

Strengths
Exceptional liquidity with a Current Ratio of 3.68 and Quick Ratio of 2.66
Strong 1-year price performance (+98.9%) indicating high market demand
Consistent track record of beating quarterly earnings estimates (3/4 last 4 quarters)
Risks
Extreme valuation gap between current price ($40.34) and Graham Number ($13.99)
Bearish insider sentiment with $25.74M in sales by C-suite executives
Severe YoY earnings contraction (-88.80%)

Compare Another Pair

EMN vs ESI: Head-to-Head Comparison

This page compares Eastman Chemical Company (EMN) and Element Solutions Inc (ESI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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