Eastman Chemical Company: An Underappreciated ESG Investment

Oct. 20, 2022 8:11 AM ETEastman Chemical Company (EMN)4 Comments
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Summary

  • Eastman developed technologies to recycle plastics that are typically incinerated or disposed in a landfill.
  • Companies across industries are signing supply agreements with Eastman to fulfill their ESG commitments.
  • These new sources of revenue will augment a variety of other sustainable products that have already increased revenue, margins, and cash flow.
  • In the past few months, Eastman has experienced a variety of setbacks and the stock price has declined significantly as a result.
  • The current valuation does not reflect the growth, margin expansion, and free cash flow prospects of the firm.

recycling symbol on grass

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Company Background

In some ways, Eastman (NYSE:EMN) is a difficult company to understand. The 2021 Annual Report describes Eastman as a "global specialty materials company." The company originally produced chemicals as part of Kodak for photographic applications and

Price Return

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Disclosure: I/we have a beneficial long position in the shares of EMN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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