Eastman Chemical CoSTU:EAC +0.34%75 Pretax Margin % is 6.25% as of Mar. 2026, which is 43% below its 10-year median of 10.91. GuruFocus rates STU:EAC with a GF Score™ of 75/100 and a GF Value™ of €68.74 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,579 Chemicals companies, Eastman Chemical Co ranks worse than 50.35% on this metric.
The historical rank and industry rank for Eastman Chemical Co's Pretax Margin % or its related term are showing as below:
STU:EAC'
s Pretax Margin % Range Over the Past 10 Years
Min: 5.22 Med: 10.91 Max: 13.5
Current: 5.22
STU:EAC's Pretax Margin % is ranked worse than 50.35% of 1579
companies
in the Chemicals industry
Industry Median: 5.33
vs STU:EAC: 5.22
Eastman Chemical Co (STU:EAC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Eastman Chemical Co Pretax Margin % Related Terms
Eastman Chemical Co Pretax Margin % Historical Data
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The historical data trend for Eastman Chemical Co's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:EAC vs AXTA, NEU, WLK: Pretax Margin % Comparison
For the Specialty Chemicals subindustry, Eastman Chemical Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eastman Chemical Co Pretax Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Eastman Chemical Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Eastman Chemical Co's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Eastman Chemical Co (STU:EAC) has a Pretax Margin % of 6.25% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Eastman Chemical Co and its competitors. This is 43% below median its historical median of 10.91. Over the past decade, Eastman Chemical Co's Pretax Margin % has ranged from 5.22 to 13.50. According to the industry distribution chart, Eastman Chemical Co ranks #795 out of 1579 companies in the Chemicals industry, placing it in the top 50.3%.
Is Eastman Chemical Co's Pretax Margin % too high?
Eastman Chemical Co's current Pretax Margin % of 6.25% is 43% below median its 10-year median of 10.91. Over the past 10 years, this metric has ranged from a low of 5.22 to a high of 13.50. The Chemicals industry median Pretax Margin % is 5.33. Eastman Chemical Co's value of 6.25% is 17.3% above this industry median. Based on the distribution chart, Eastman Chemical Co ranks #795 out of 1579 companies in the Chemicals industry, which is below the industry midpoint. Overall, Eastman Chemical Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eastman Chemical Co's Pretax Margin % compare to AXTA and NEU?
According to the Chemicals industry distribution chart, Eastman Chemical Co ranks #795 out of 1579 companies for Pretax Margin %. This places Eastman Chemical Co in the lower half of its industry. The industry median Pretax Margin % is 5.33. Eastman Chemical Co's value of 6.25% is 17.3% above this benchmark. Historically, Eastman Chemical Co's own Pretax Margin % has ranged from 5.22 to 13.50 over the past decade. While the company's 10-year median is 10.91 vs. the industry median of 5.33, Eastman Chemical Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Chemicals company?
The median Pretax Margin % among Chemicals companies is 5.33, based on 1,579 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eastman Chemical Co's current Pretax Margin % of 6.25% is 17.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Eastman Chemical Co and its competitors. For the Chemicals industry, the median Pretax Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eastman Chemical Co's current Pretax Margin % is 6.25%, which is 43% below median its own 10-year median of 10.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eastman Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Eastman Chemical Co (STU:EAC) is currently considered Modestly Undervalued. The stock's GF Value™ is €68.74, compared to a current price of €58.52 — trading 14.9% below its estimated fair value. The current Pretax Margin % is 6.25%, which is 43% below median its 10-year median of 10.91 and 17.3% above the Chemicals industry median of 5.33. Eastman Chemical Co's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Eastman Chemical Co (STU:EAC), the current Pretax Margin % is 6.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eastman Chemical Co (STU:EAC) Overvalued in 2026?
Based on GuruFocus' analysis, Eastman Chemical Co stock appears to be undervalued.
The current stock price of €58.52 is trading 14.9% below its estimated GF Value™ of €68.74.
GuruFocus considers Eastman Chemical Co to be Modestly Undervalued.
Key valuation signals for STU:EAC:
Pretax Margin %: 6.25% (43% below median its 10-year median of 10.91)
GF Value™: €68.74 vs. price of €58.52 (14.9% below fair value)
Industry Position: 17.3% above the Chemicals median (#795 of 1579)
No single metric tells the full story. See the STU:EAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1920 to produce chemicals for Eastman Kodak, Eastman Chemical has grown into a global specialty chemical company with manufacturing sites around the world. The company generates the majority of its sales outside of the United States, with a strong presence in Asian markets. During the past several years, Eastman has sold noncore businesses, choosing to focus on higher-margin specialty product offerings.
75GF Score
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