HUNTSMAN CORP (HUN) Stock Fundamental Analysis
NYSE:HUN - New York Stock Exchange, Inc. - US4470111075 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HUN. HUN was compared to 85 industry peers in the Chemicals industry. HUN has a bad profitability rating. Also its financial health evaluation is rather negative. HUN has a expensive valuation and it also scores bad on growth. HUN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HUN has reported negative net income.
In the past year HUN had a positive cash flow from operations.
HUN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HUN had a positive operating cash flow.
1.2 Ratios
HUN's Return On Assets of -2.17% is on the low side compared to the rest of the industry. HUN is outperformed by 67.06% of its industry peers.
Looking at the Return On Equity, with a value of -5.37%, HUN is doing worse than 65.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.19%, HUN is doing worse than 74.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HUN is below the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -5.37% | ||
| ROIC | 1.19% |
ROA(3y)1.44%
ROA(5y)5.47%
ROE(3y)3.16%
ROE(5y)12.59%
ROIC(3y)3.85%
ROIC(5y)4.46%
1.3 Margins
Looking at the Operating Margin, with a value of 1.44%, HUN is doing worse than 76.47% of the companies in the same industry.
HUN's Operating Margin has declined in the last couple of years.
The Gross Margin of HUN (14.49%) is worse than 72.94% of its industry peers.
HUN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.44% | ||
| PM (TTM) | N/A | ||
| GM | 14.49% |
OM growth 3Y-50.02%
OM growth 5Y-28.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.43%
GM growth 5Y-6.74%
2. Health
2.1 Basic Checks
HUN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HUN has more shares outstanding
Compared to 5 years ago, HUN has less shares outstanding
HUN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that HUN is in the distress zone and has some risk of bankruptcy.
HUN's Altman-Z score of 1.67 is on the low side compared to the rest of the industry. HUN is outperformed by 60.00% of its industry peers.
The Debt to FCF ratio of HUN is 25.71, which is on the high side as it means it would take HUN, 25.71 years of fcf income to pay off all of its debts.
HUN has a Debt to FCF ratio of 25.71. This is comparable to the rest of the industry: HUN outperforms 44.71% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that HUN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, HUN is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 25.71 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.15
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.48 indicates that HUN should not have too much problems paying its short term obligations.
HUN has a worse Current ratio (1.48) than 68.24% of its industry peers.
HUN has a Quick Ratio of 1.48. This is a bad value and indicates that HUN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HUN (0.82) is worse than 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
HUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -220.00%.
Looking at the last year, HUN shows a small growth in Revenue. The Revenue has grown by 0.02% in the last year.
HUN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.35% yearly.
EPS 1Y (TTM)-220%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-83.33%
Revenue 1Y (TTM)0.02%
Revenue growth 3Y-7.68%
Revenue growth 5Y-2.35%
Sales Q2Q%-4.08%
3.2 Future
Based on estimates for the next years, HUN will show a very strong growth in Earnings Per Share. The EPS will grow by 143.43% on average per year.
The Revenue is expected to grow by 2.54% on average over the next years.
EPS Next Y-450.45%
EPS Next 2Y138.41%
EPS Next 3Y143.43%
EPS Next 5YN/A
Revenue Next Year-1.4%
Revenue Next 2Y1.8%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HUN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 42.89, HUN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, HUN is valued a bit more expensive than 69.41% of the companies in the same industry.
HUN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUN is valued a bit cheaper than 63.53% of the companies in the same industry.
65.88% of the companies in the same industry are more expensive than HUN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.29 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HUN's earnings are expected to grow with 143.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y138.41%
EPS Next 3Y143.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.57%, HUN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.69, HUN pays a better dividend. On top of this HUN pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
5.2 History
On average, the dividend of HUN grows each year by 9.05%, which is quite nice.
HUN has paid a dividend for at least 10 years, which is a reliable track record.
HUN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.05%
Div Incr Years4
Div Non Decr Years17
5.3 Sustainability
The earnings of HUN are negative and hence is the payout ratio. HUN will probably not be able to sustain this dividend level.
The dividend of HUN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-110.83%
EPS Next 2Y138.41%
EPS Next 3Y143.43%
11.06
+0.64 (+6.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change2.15%
Ins Owners5.31%
Ins Owner Change4.6%
Market Cap1.92B
Analysts64.76
Price Target14.36 (29.84%)
Short Float %5.1%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
Yearly Dividend1.01
Dividend Growth(5Y)9.05%
DP-110.83%
Div Incr Years4
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-76.47%
Min EPS beat(2)-152.09%
Max EPS beat(2)-0.84%
EPS beat(4)1
Avg EPS beat(4)-37.63%
Min EPS beat(4)-152.09%
Max EPS beat(4)4.35%
EPS beat(8)1
Avg EPS beat(8)-27.85%
EPS beat(12)3
Avg EPS beat(12)-20.94%
EPS beat(16)7
Avg EPS beat(16)-13.35%
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-6.25%
Max Revenue beat(2)-0.41%
Revenue beat(4)0
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-6.25%
Max Revenue beat(4)-0.41%
Revenue beat(8)1
Avg Revenue beat(8)-2.39%
Revenue beat(12)2
Avg Revenue beat(12)-2.31%
Revenue beat(16)3
Avg Revenue beat(16)-3.03%
PT rev (1m)-2.66%
PT rev (3m)-30.94%
EPS NQ rev (1m)-94.27%
EPS NQ rev (3m)-227.06%
EPS NY rev (1m)-62.02%
EPS NY rev (3m)-447.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.65%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.89 | ||
| P/S | 0.32 | ||
| P/FCF | 25.29 | ||
| P/OCF | 7.57 | ||
| P/B | 0.66 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 9.15 |
EPS(TTM)-0.12
EYN/A
EPS(NY)0.26
Fwd EY2.33%
FCF(TTM)0.44
FCFY3.95%
OCF(TTM)1.46
OCFY13.22%
SpS34.39
BVpS16.83
TBVpS11.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -5.37% | ||
| ROCE | 1.51% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 1.55% | ||
| OM | 1.44% | ||
| PM (TTM) | N/A | ||
| GM | 14.49% | ||
| FCFM | 1.27% |
ROA(3y)1.44%
ROA(5y)5.47%
ROE(3y)3.16%
ROE(5y)12.59%
ROIC(3y)3.85%
ROIC(5y)4.46%
ROICexc(3y)4.26%
ROICexc(5y)5.51%
ROICexgc(3y)5.21%
ROICexgc(5y)6.86%
ROCE(3y)4.87%
ROCE(5y)5.65%
ROICexcg growth 3Y-54.19%
ROICexcg growth 5Y-26.52%
ROICexc growth 3Y-53.71%
ROICexc growth 5Y-28.3%
OM growth 3Y-50.02%
OM growth 5Y-28.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.43%
GM growth 5Y-6.74%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 25.71 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 61.59% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 1.18 | ||
| Cash Conversion | 67.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.67 |
F-Score5
WACC8.03%
ROIC/WACC0.15
Cap/Depr(3y)81.07%
Cap/Depr(5y)89.35%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-220%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-83.33%
EPS Next Y-450.45%
EPS Next 2Y138.41%
EPS Next 3Y143.43%
EPS Next 5YN/A
Revenue 1Y (TTM)0.02%
Revenue growth 3Y-7.68%
Revenue growth 5Y-2.35%
Sales Q2Q%-4.08%
Revenue Next Year-1.4%
Revenue Next 2Y1.8%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
EBIT growth 1Y115%
EBIT growth 3Y-53.86%
EBIT growth 5Y-29.79%
EBIT Next Year154.68%
EBIT Next 3Y67.52%
EBIT Next 5YN/A
FCF growth 1Y-82.16%
FCF growth 3Y-49.41%
FCF growth 5Y-33.84%
OCF growth 1Y-62.37%
OCF growth 3Y-34.87%
OCF growth 5Y-21.76%