Today's stock selection:
EMN
Focus: Growth and income.
If your main focus is to establish a team of dividend paying stocks that will generate income and growth. EMN is probably part of that core. The investor should be less concerned about price fluctuation than with the dividend prospects.
EMN manufactures and markets chemicals, fibers and plastics worldwide. The company produces 1,200 products in 23 countries.
On Apr 24, Eastman Chemical reported first quarter earnings that increased 24% to $1.48 from $1.19 per share in the first-quarter of 2007.
Revenue rose 6% to $1.7 billion over the first-quarter 2007. Higher prices offset a fall of 2% in sales volume in the quarter. The Coatings, Adhesives, Specialty Polymers and Inks segment saw revenues increase by 13%, due to higher selling prices and favorable exchange rates.
Despite a weakening U.S. economy and the continued high raw material and energy costs, the company expects second quarter earnings per share to be slightly above the first quarter's earning per share of $1.48, excluding charges.
Eastman's forward P/E is 12.39. Its price-to-book is 2.90. The company has a stellar five-year average return on equity (ROE) of 20.24%. As an added bonus, EMN also has a current dividend yield of 2.40%.
Reference:
http://www.zacks.com/rank/zcommentary/?id=7935
Overall, I rate this stock a buy:
The stock has been outperforming the market
Wall street analysts have been increasing earnings projections
Stellar return on equity(ROE)
Other key fundamentals:
| Profit Margin (ttm): | 5.14% |
| Operating Margin (ttm): | 9.88% |
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| Management Effectiveness | | Return on Assets (ttm): | 7.17% | | Return on Equity (ttm): | 17.15% | |
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| Income Statement | | Revenue (ttm): | 6.92B | | Revenue Per Share (ttm): | 85.038 | | Qtrly Revenue Growth (yoy): | 5.50% | | Gross Profit (ttm): | 1.19B | | EBITDA (ttm): | 943.00M | | Net Income Avl to Common (ttm): | 343.00M | | Diluted EPS (ttm): | 4.32 | | Qtrly Earnings Growth (yoy): | 72.70% | |
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| Balance Sheet |
| Total Cash (mrq): | 793.00M |
| Total Cash Per Share (mrq): | 10.413 |
| Total Debt (mrq): | 1.69B |
| Total Debt/Equity (mrq): | 0.89 |
$70.98 (06/26/08)
