EMN - Eastman Chemical: Going For Growth In The Recycling Economy

2024-05-10 11:11:56 ET

Summary

• Eastman Chemical has successfully started operations at one of three planned new facilities for polymer recycling.
• The long-term opportunity in specialized treatment to chemically convert used plastics into new products represents a growth edge in an otherwise mature sector of the economy.
• However, shares are fairly valued at the moment on an earnings basis, and the dividend yield is not attractive enough on its own for income-seeking investors.

One of my kids is taking high school chemistry this year, and with the good fortune of having a teacher that makes the content understandable and engaging, my kid is now, all of a sudden, considering pursuing chemistry or related majors in college. As a dad looking to pay for college, this has sent me down a bit of a rabbit hole, looking into the differences between majoring in chemistry, biochemistry, chemical engineering, etc., with the goal of better understanding what sort of job prospects a bachelor's degree in those areas might look like. To that end, I have looked at the job postings at assorted chemical and materials manufacturers (amongst other possible employers), including a company whose shares I've been invested in since September 2022, the Eastman Chemical Company ( EMN ). I currently consider the shares a "hold" as shares are fairly valued. They have done very well for me on a total return basis, but I have paused adding to my position over the last 6 months....

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