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Huntsman Corp (HUN)
NYSE:HUN

Huntsman (HUN) AI Stock Analysis

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HU

Huntsman

(NYSE:HUN)

Rating:54Neutral
Price Target:
Huntsman Corporation is currently facing significant challenges with declining financial performance and negative market momentum. While strategic advantages like domestic production and high dividend yield provide some positives, the company needs to navigate supply chain disruptions and trade tariff impacts effectively. The overall score reflects the need for cautious optimism with a focus on strategic improvements.
Positive Factors
Tariffs
US-expanded tariffs provide a material tailwind for Huntsman's US MDI business.
Negative Factors
Earnings Guidance
Huntsman's performance, guidance, and commentary point to a major demand slowdown and continued earnings declines.
Market Exposure
Significant exposure to cyclical end-markets such as construction, automotive, and apparel limits volume growth and margin expansion.

Huntsman (HUN) vs. SPDR S&P 500 ETF (SPY)

Huntsman Business Overview & Revenue Model

Company DescriptionHuntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals. The company operates through four business segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. Huntsman serves a diverse range of industries, including automotive, aerospace, textiles, and construction, delivering innovative and sustainable solutions that enhance the performance of its customers' products.
How the Company Makes MoneyHuntsman makes money primarily through the sale of its chemical products across its four main business segments. The Polyurethanes segment generates revenue by supplying polyurethanes and related products used in various applications such as insulation, furniture, and automotive components. The Performance Products segment earns income from the production and sale of amines and surfactants used in detergents, personal care, and industrial applications. The Advanced Materials segment contributes to revenue through the provision of high-performance thermoset resins and adhesives, which are used in electronics, coatings, and construction materials. Lastly, the Textile Effects segment generates income by providing dyes, chemicals, and digital inks to the textile industry. Huntsman also benefits from strategic partnerships and collaborations that enhance its market reach and product offerings, as well as from its focus on innovation and sustainability, which help drive demand for its products.

Huntsman Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -14.96%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Huntsman Corporation is navigating a challenging environment with significant supply chain disruptions and uncertainties due to trade tariffs. While there are strategic advantages from domestic production and tariff impacts on competitors, the company faces notable challenges in aligning supply with demand and managing costs in Europe.
Q1-2025 Updates
Positive Updates
MDI Tariff Impact
North American MDI tariffs have significantly reduced imports from China, dropping by 75% by the end of Q1. This allows Huntsman, which produces MDI domestically, to benefit from reduced competition and potential price stabilization.
Cost Management and Structural Adjustments
Huntsman announced consolidation efforts such as the closure of their Boisbriand, Canada facility, and right-sizing their European operations to adapt to market conditions and reduce costs.
Local Production Advantage
Huntsman's strategy of producing MDI domestically in both the Americas and China provides a competitive advantage amidst international trade uncertainties.
Negative Updates
Supply Chain and Demand Disconnect
The company is experiencing a significant disconnect between orders and actual downstream demand, leading to double-digit drops in some order patterns.
Volatility in Global Markets
The company faces ongoing uncertainties in macroeconomic conditions, tariffs, and supply chain issues, which are impacting their ability to forecast and stabilize operations.
European Market Challenges
High energy costs, taxes, and regulatory burdens in Europe are causing difficulties, leading to a need for cost reduction and structural adjustments in the region.
Impact of Trade Tariffs
Trade tariffs are causing significant disruptions and uncertainties in supply chains, impacting customer confidence and order patterns.
Company Guidance
During the Huntsman Corporation First Quarter 2025 Earnings Call, CEO Peter Huntsman highlighted the company's decision to focus on quarterly rather than yearly guidance due to the current volatile economic landscape. He noted significant disruptions in supply chains, with automotive build rates dropping by low single-digit percentages, yet resulting in double-digit reductions in order patterns. Huntsman emphasized that tariffs, especially on North American MDI, have led to a dramatic decrease in imports, particularly from China, and anticipated continued impacts in the second quarter. The company sees potential for margin expansion due to stabilizing MDI prices and falling raw material costs, despite ongoing challenges in Europe related to industrial policy and high energy costs. The call also addressed plans to double cost savings to $100 million, with further details to be provided later, and a focus on maintaining a strong balance sheet and shareholder value amidst market uncertainties.

Huntsman Financial Statement Overview

Summary
Huntsman faces challenges with declining revenue and profitability, reflected in a weak income statement. While the balance sheet shows a high equity ratio, increased leverage and declining return on equity raise concerns. Cash flow management is under pressure, necessitating strategic adjustments to regain financial health and growth.
Income Statement
45
Neutral
The income statement shows declining revenue and profitability. The TTM (Trailing-Twelve-Months) revenue decreased compared to the previous year, with a significant drop in net income leading to negative net profit margin. EBIT and EBITDA margins have also been impacted by reduced operational efficiency.
Balance Sheet
60
Neutral
The balance sheet reflects a strong equity position with a high equity ratio, suggesting financial stability. However, the debt-to-equity ratio has increased, indicating higher leverage. Return on equity has declined due to recent losses, posing a risk to future profitability.
Cash Flow
55
Neutral
Cash flow analysis indicates challenges in maintaining free cash flow growth with recent declines. The operating cash flow to net income ratio remains positive, suggesting some operational cash generation stability, though the free cash flow to net income ratio highlights pressure on free cash flow relative to profitability.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.98B6.04B6.11B8.02B8.45B6.02B
Gross Profit
866.00M866.00M906.00M1.55B1.77B1.10B
EBIT
55.00M-25.00M84.00M672.00M795.00M277.00M
EBITDA
392.00M329.00M442.00M1.09B1.65B560.00M
Net Income Common Stockholders
-142.00M-189.00M101.00M460.00M1.04B291.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
334.00M340.00M540.00M654.00M1.04B1.59B
Total Assets
7.23B7.11B7.25B8.22B9.39B8.71B
Total Debt
2.35B2.24B2.07B1.74B1.55B2.12B
Net Debt
2.02B1.90B1.53B1.08B509.00M528.00M
Total Liabilities
4.06B3.95B3.77B4.38B4.83B5.04B
Stockholders Equity
2.95B2.96B3.25B3.62B4.38B3.52B
Cash FlowFree Cash Flow
76.00M79.00M-21.00M642.00M610.00M4.00M
Operating Cash Flow
254.00M263.00M209.00M914.00M952.00M253.00M
Investing Cash Flow
-90.00M-126.00M305.00M-260.00M-524.00M1.46B
Financing Cash Flow
-374.00M-326.00M-620.00M-994.00M-977.00M-655.00M

Huntsman Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.37
Price Trends
50DMA
12.80
Negative
100DMA
14.84
Negative
200DMA
17.61
Negative
Market Momentum
MACD
-0.47
Negative
RSI
41.17
Neutral
STOCH
56.53
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 11.37 is below the 20-day moving average (MA) of 11.85, below the 50-day MA of 12.80, and below the 200-day MA of 17.61, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 56.53 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$640.02M7.6511.26%2.68%6.03%5079.05%
DODOW
61
Neutral
$20.18B71.361.60%9.81%-2.08%-76.11%
CECE
56
Neutral
$6.07B6.84-26.94%2.63%-5.98%-183.27%
HUHUN
54
Neutral
$1.98B-4.46%8.79%0.02%-43.65%
51
Neutral
$930.17M-8.44%8.52%4.15%57.25%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
BABAK
48
Neutral
$1.54B-8638.28%0.81%-34.74%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HUN
Huntsman
11.37
-11.89
-51.12%
CE
Celanese
55.46
-87.78
-61.28%
BAK
Braskem SA
3.69
-2.98
-44.68%
TROX
TRONOX
5.87
-12.53
-68.10%
ASIX
AdvanSix
23.87
0.70
3.02%
DOW
Dow Inc
28.55
-23.61
-45.26%

Huntsman Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Huntsman Amends Credit Agreement for Financial Flexibility
Neutral
May 27, 2025

On May 23, 2025, Huntsman International LLC amended its 2022 Revolving Credit Agreement to adjust financial covenants, specifically increasing the maximum permitted leverage ratio through December 31, 2026. This amendment aims to provide financial flexibility by reducing general debt and liens baskets and limiting restricted payments during the Covenant Relief Period, impacting the company’s financial operations and stakeholder interests.

The most recent analyst rating on (HUN) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Huntsman stock, see the HUN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Huntsman Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 2, 2025

Huntsman Corporation held its Annual Meeting on April 30, 2025, where stockholders voted on several key proposals. The stockholders re-elected the company’s director nominees, approved executive compensation, ratified Deloitte & Touche LLP as the independent auditor for 2025, and approved the 2025 Stock Incentive Plan.

Executive/Board ChangesBusiness Operations and Strategy
Huntsman Announces Leadership Change in Polyurethanes Division
Neutral
May 2, 2025

On April 28, 2025, Huntsman Corporation announced that Tony Hankins, the Division President of its Polyurethanes business unit, will step down from his role effective June 1, 2025, to transition to a new position within the company. Steen Weien Hansen, who has been with Huntsman since 1999, will succeed Hankins as the Division President. Hankins, who has significantly contributed to the company over his long career, will continue to provide transition services until the end of the year. This leadership change is expected to ensure continuity and leverage Hansen’s strategic capabilities to address global operational challenges.

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.