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 is valued expensive and it does not seem to be growing. Finally 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.
In the past 5 years HUN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HUN (-2.17%) is worse than 68.24% of its industry peers.
HUN has a Return On Equity of -5.37%. This is in the lower half of the industry: HUN underperforms 61.18% of its industry peers.
The Return On Invested Capital of HUN (1.19%) is worse than 74.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HUN is below the industry average of 7.01%.
| 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
HUN has a worse Operating Margin (1.44%) than 75.29% of its industry peers.
In the last couple of years the Operating Margin of HUN has declined.
The Gross Margin of HUN (14.49%) is worse than 72.94% of its industry peers.
In the last couple of years the Gross Margin of HUN has declined.
| 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
The debt/assets ratio for HUN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that HUN is in the distress zone and has some risk of bankruptcy.
HUN's Altman-Z score of 1.73 is in line compared to the rest of the industry. HUN outperforms 42.35% 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 (25.71) which is in line with its industry peers.
A Debt/Equity ratio of 0.57 indicates that HUN is somewhat dependend on debt financing.
HUN has a Debt to Equity ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 25.71 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.15
WACC8.05%
2.3 Liquidity
HUN has a Current Ratio of 1.48. This is a normal value and indicates that HUN is financially healthy and should not expect problems in meeting its short term obligations.
HUN's Current ratio of 1.48 is on the low side compared to the rest of the industry. HUN is outperformed by 67.06% of its industry peers.
A Quick Ratio of 0.82 indicates that HUN may have some problems paying its short term obligations.
The Quick ratio of HUN (0.82) is worse than 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for HUN have decreased strongly by -220.00% in the last year.
The Revenue has been growing slightly by 0.02% in the past year.
Measured over the past years, HUN shows a decrease in Revenue. The Revenue has been decreasing by -2.35% on average per year.
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 184.04% on average per year.
Based on estimates for the next years, HUN will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y116.23%
EPS Next 2Y230.39%
EPS Next 3Y184.04%
EPS Next 5YN/A
Revenue Next Year-0.9%
Revenue Next 2Y1.98%
Revenue Next 3Y2.82%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 20.77, HUN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HUN is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
HUN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.77 |
4.2 Price Multiples
HUN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.63 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
HUN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HUN's earnings are expected to grow with 184.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y230.39%
EPS Next 3Y184.04%
5. Dividend
5.1 Amount
HUN has a Yearly Dividend Yield of 8.32%, which is a nice return.
In the last 3 months the price of HUN has falen by -23.72%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HUN's Dividend Yield is rather good when compared to the industry average which is at 3.79. HUN pays more dividend than 90.59% of the companies in the same industry.
HUN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
5.2 History
On average, the dividend of HUN grows each year by 9.05%, which is quite nice.
HUN has been paying a dividend for at least 10 years, so it has a reliable track record.
HUN has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
HUN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-110.83%
EPS Next 2Y230.39%
EPS Next 3Y184.04%
12.96
+0.03 (+0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.6%
Inst Owner Change-4.22%
Ins Owners5.88%
Ins Owner Change4.56%
Market Cap2.25B
Analysts67.62
Price Target14.75 (13.81%)
Short Float %4.64%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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)-28.24%
PT rev (3m)-31.64%
EPS NQ rev (1m)-124.2%
EPS NQ rev (3m)-107.72%
EPS NY rev (1m)-89.76%
EPS NY rev (3m)-98.07%
Revenue NQ rev (1m)-5.68%
Revenue NQ rev (3m)-6.54%
Revenue NY rev (1m)-4.36%
Revenue NY rev (3m)-4.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.77 | ||
| P/S | 0.38 | ||
| P/FCF | 29.63 | ||
| P/OCF | 8.87 | ||
| P/B | 0.77 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 10.32 |
EPS(TTM)-0.12
EYN/A
EPS(NY)0.62
Fwd EY4.82%
FCF(TTM)0.44
FCFY3.38%
OCF(TTM)1.46
OCFY11.28%
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 | 1.73 |
F-Score5
WACC8.05%
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 Y116.23%
EPS Next 2Y230.39%
EPS Next 3Y184.04%
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-0.9%
Revenue Next 2Y1.98%
Revenue Next 3Y2.82%
Revenue Next 5YN/A
EBIT growth 1Y115%
EBIT growth 3Y-53.86%
EBIT growth 5Y-29.79%
EBIT Next Year247.32%
EBIT Next 3Y74.29%
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%