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Huntsman (HUN)
:HUN
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Huntsman
(NYSE:HUN)
46Neutral
Positive Factors
Dividend Yield
HUN’s stock offers an almost 6% dividend yield which is estimated to be fully covered by post-NCI FCF.
Market Recovery
A gradual recovery seems likely with US construction stable, China trough, and energy costs in Europe supporting insulation demand.
MDI Market Structure
MDI's market structure is helping mitigate the weak volume environment and bolster margins.
Negative Factors
Dividend Coverage Concern
Free cash flow is not expected to cover the dividend, projecting a deficit of $60 million.
MDI Business Challenges
The current macro backdrop is still a net negative for Huntsman's MDI business due to an MDI glut in Asia and downward price pressure.
Volume Decline
Volume declined in Performance Products due to maleic anhydride outages.
Huntsman (HUN) vs. S&P 500 (SPY)
Market Cap
$2.32B
Dividend Yield7.5%
Average Volume (3M)3.95M
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth-1.23%
EPS Growth-277.52%
CountryUS
Employees6,300
SectorBasic Materials
Sector Strength61
IndustryChemicals
Share Statistics
EPS (TTM)-0.94
Shares Outstanding173,747,480
10 Day Avg. Volume3,986,793
30 Day Avg. Volume3,952,302
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.47
Price to Cash Flow (P/CF)4.60
P/FCF Ratio6.90
Enterprise Value/Market Cap2.25
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.01
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.82Price Target Upside33.68% Upside
Rating ConsensusHold
Number of Analyst Covering12
Huntsman Business Overview & Revenue Model
Company DescriptionHuntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals. The company operates across several sectors, including polyurethanes, performance products, advanced materials, and textile effects. Its core products include polyols, methylene diphenyl diisocyanate (MDI), epoxy-based polymer formulations, textile chemicals, and additives, which serve various industries such as automotive, construction, textiles, and consumer goods.
How the Company Makes MoneyHuntsman Corporation generates revenue primarily through the sale of its chemical products across its four main business divisions: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes division is the largest revenue contributor, producing materials used in insulation, adhesives, and coatings. Performance Products offers amines, surfactants, and other chemicals for industrial and consumer applications. Advanced Materials provides epoxy-based formulations and systems for industries like aerospace and electronics. The Textile Effects division supplies dyes and chemicals to the textile industry. Huntsman also forms strategic partnerships and joint ventures to enhance its market reach and production capabilities. The company's earnings are influenced by global economic conditions, raw material costs, and demand fluctuations in the end markets it serves.
Huntsman Financial Statement Overview
Summary
Huntsman's financial performance reflects significant operational and financial challenges. The income statement shows declining revenue and profitability, while the balance sheet indicates moderate leverage but declining equity. Cash flow is inconsistent, with some improvements. Overall, the financial position requires careful management to address declining profitability and stabilize cash flow.Income Statement
The income statement reveals several challenges, notably a negative EBIT and EBITDA in the most recent year, indicating operational difficulties. The gross profit margin decreased from previous years, and the net profit margin turned negative, reflecting struggles in maintaining profitability. Revenue has also declined over the past three years, suggesting a downward growth trend.40
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, which improved recently due to reduced total debt. However, the decrease in stockholders' equity is a concern. The equity ratio indicates stable reliance on equity financing, but shrinking total assets and equity reflect potential risks to financial stability.55
Neutral
Cash Flow
Cash flow analysis highlights volatile free cash flow, with recent improvement but inconsistent past performance. The operating cash flow to net income ratio is strong, showing effective cash generation despite negative net income. However, fluctuations in free cash flow growth suggest underlying cash management issues.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.04B | 6.11B | 8.02B | 8.45B | 6.02B | Gross Profit |
| 866.00M | 906.00M | 1.55B | 1.77B | 1.10B | EBIT |
| -25.00M | 84.00M | 672.00M | 795.00M | 277.00M | EBITDA |
| 329.00M | 442.00M | 1.09B | 1.65B | 560.00M | Net Income Common Stockholders |
| -189.00M | 101.00M | 460.00M | 1.04B | 291.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 340.00M | 540.00M | 654.00M | 1.04B | 1.59B | Total Assets |
| 7.11B | 7.25B | 8.22B | 9.39B | 8.71B | Total Debt |
| 727.00M | 2.07B | 1.74B | 1.55B | 2.12B | Net Debt |
| 387.00M | 1.53B | 1.08B | 509.00M | 528.00M | Total Liabilities |
| 3.95B | 3.77B | 4.38B | 4.83B | 5.04B | Stockholders Equity |
| 2.96B | 3.25B | 3.62B | 4.38B | 3.52B |
| Cash Flow | Free Cash Flow | |||
| 79.00M | -21.00M | 642.00M | 610.00M | 4.00M | Operating Cash Flow |
| 263.00M | 209.00M | 914.00M | 952.00M | 253.00M | Investing Cash Flow |
| -126.00M | 305.00M | -260.00M | -524.00M | 1.46B | Financing Cash Flow |
| -326.00M | -620.00M | -994.00M | -977.00M | -655.00M |
Huntsman Technical Analysis
Negative
13.33
Price Trends
15.61
Negative
16.59
Negative
18.95
Negative
Market Momentum
-0.77
Negative
41.52
Neutral
44.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUN, the sentiment is Negative. The current price of 13.33 is below the 20-day moving average (MA) of 13.74, below the 50-day MA of 15.61, and below the 200-day MA of 18.95, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 44.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUN.
Huntsman Risk Analysis
Huntsman disclosed 21 risk factors in its most recent earnings report. Huntsman reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Huntsman Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $565.64M | 13.03 | 5.83% | 3.03% | -1.05% | -16.57% | |
60 Neutral | $21.13B | 75.03 | 1.60% | 9.33% | -2.08% | -76.11% | |
58 Neutral | $887.39M | ― | -2.60% | 8.93% | 7.82% | 84.90% | |
49 Neutral | $1.95B | -1.61 | -21.88% | 3.78% | 0.55% | -26.94% | |
48 Neutral | $4.86B | 6.84 | -24.69% | 4.89% | -6.03% | -177.29% | |
46 Neutral | $2.32B | ― | -5.22% | 7.50% | -1.23% | -277.52% | |
43 Neutral | $1.59B | ― | -8638.28% | ― | 1.97% | -121.00% |
* Basic Materials Sector Average
Performance Comparison
HUN
Huntsman
13.33
-9.96
-42.77%
CE
Celanese
43.53
-112.32
-72.07%
BAK
Braskem SA
3.95
-4.87
-55.22%
TROX
TRONOX
5.60
-11.41
-67.08%
ASIX
AdvanSix
21.10
-4.54
-17.71%
DOW
Dow
30.02
-24.44
-44.88%
Huntsman Earnings Call Summary
Earnings Call Date:Feb 17, 2025
(Q4-2024)
| % Change Since: -36.94%|
Next Earnings Date:May 01, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Huntsman has made significant progress in cost savings and optimizing its asset footprint, challenges remain, particularly in Europe. Positive market trends in MDI and strategic growth initiatives in Performance Products provide a hopeful outlook, but uncertainties in European operations and specific facilities like the maleic anhydride plant pose risks. The sentiment is balanced between cautious optimism and ongoing challenges.Q4-2024 Updates
Positive Updates
Cost Savings Initiatives
Huntsman successfully implemented cost-saving measures, resulting in more than $150 million offset against global inflationary costs since 2022, and a reduction in SG&A by more than 6%.
Strategic Asset Footprint Optimization
The company closed or sold several locations and opened global business service hubs in San José, Costa Rica, and Kraków, Poland, expanding the Kuala Lumpur site to approximately 600 positions.
Positive MDI Market Trends
Huntsman reports early signs of recovery in MDI pricing and margins, with MDI prices in China at a three-year high and announced price increases in North America.
New Opportunities in Performance Products
Expansion in Conroe, Texas, with new facilities servicing the chip industry and other sectors, indicating potential growth in Performance Products throughout the year.
Negative Updates
Challenges in European Markets
Continued industrial decline and overcapacity in Europe, with ongoing challenges related to higher energy prices and competition from imports.
Maleic Anhydride Facility Uncertainty
Uncertainty surrounds the Moers, Germany maleic anhydride facility due to competitive pressures and the potential need for restructuring or divestment.
First Quarter 2025 EBITDA Decline in Performance Products
Projected decline in EBITDA for Performance Products by 30% year-over-year, primarily due to reduced profitability in European operations.
Company Guidance
During the Huntsman Corporation Fourth Quarter 2024 Earnings Call, the company provided guidance focused on short-term market conditions and strategic cost management. They reported achieving over $150 million in cost savings since 2022 and a 6% reduction in SG&A expenses. The guidance highlighted a cautious outlook, emphasizing a reluctance to offer annual forecasts due to geopolitical uncertainties and market volatility. In terms of operational adjustments, Huntsman announced the closure of several facilities and the expansion of others, such as their Kuala Lumpur site, which now employs approximately 600 people. Additionally, they are focusing on margin expansion and asset optimization, with plans to leverage early signs of recovery in MDI pricing and demand. The company also discussed the potential impact of tariffs on their operations, indicating that recent tariff changes might benefit their earnings due to a low volume of transoceanic trade. Looking ahead to 2025, Huntsman aims to continue minimizing costs while capitalizing on market forces and potential price increases in North America.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.