Is EMN a high-quality business?

AlphaMadera's AlphaQuality grade scores Eastman Chemical Company on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how EMN compares to a Buffett-style quality bar.

What is Eastman Chemical Company's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to EMN based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes EMN a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

EMN - Eastman Chemical Company

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $79.89 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 53.3 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C- 50.0

5yr Avg ROIC 8.8% 54/100
Operating Margin Trend -0.24 pp/yr 41/100

Capital Efficiency

Weight: 15%

A- 82.3

5yr Avg ROE 13.2% 74/100
5yr Share-Count CAGR -4.2% 98/100

Growth Quality

Weight: 15%

F 17.0

5yr Revenue CAGR -4.4% 11/100
5yr EPS CAGR -10.0% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

B- 65.7

5yr FCF Margin 6.3% 55/100
5yr FCF/NI Conversion 0.79x 78/100

Balance Sheet

Weight: 20%

C- 46.4

Net Debt / EBITDA 3.50x 40/100
Interest Coverage (EBIT/Int) 3.73x 52/100
Altman Z-Score 2.30 51/100

Stability

Weight: 15%

C+ 61.3

EPS Volatility (σ/μ) 0.29 58/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 1 added; 2 trimmed.

Holders: 3
Avg Δ position: -21.6%
New buys: 0
Full exits: 0

Dalio decreased -53%
Cooperman decreased -31%
Greenblatt increased +19%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.