HUNTSMAN CORP (HUN)

US4470111075 - Common Stock

23.26  -0.88 (-3.65%)

After market: 23.26 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to HUN. HUN was compared to 84 industry peers in the Chemicals industry. HUN has a bad profitability rating. Also its financial health evaluation is rather negative. HUN is quite expensive at the moment. It does show a decent growth rate. Finally HUN also has an excellent dividend rating.



3

1. Profitability

1.1 Basic Checks

In the past year HUN was profitable.
HUN had a positive operating cash flow in the past year.
HUN had positive earnings in each of the past 5 years.
Each year in the past 5 years HUN had a positive operating cash flow.

1.2 Ratios

HUN has a worse Return On Assets (-1.18%) than 69.05% of its industry peers.
HUN has a Return On Equity of -2.85%. This is in the lower half of the industry: HUN underperforms 66.67% of its industry peers.
HUN's Return On Invested Capital of 0.53% is on the low side compared to the rest of the industry. HUN is outperformed by 69.05% of its industry peers.
HUN had an Average Return On Invested Capital over the past 3 years of 6.17%. This is in line with the industry average of 6.70%.
The 3 year average ROIC (6.17%) for HUN is well above the current ROIC(0.53%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.18%
ROE -2.85%
ROIC 0.53%
ROA(3y)6.04%
ROA(5y)7.35%
ROE(3y)13.28%
ROE(5y)18.1%
ROIC(3y)6.17%
ROIC(5y)5.32%

1.3 Margins

HUN's Profit Margin has declined in the last couple of years.
The Operating Margin of HUN (0.67%) is worse than 69.05% of its industry peers.
HUN's Operating Margin has declined in the last couple of years.
HUN's Gross Margin of 14.03% is on the low side compared to the rest of the industry. HUN is outperformed by 75.00% of its industry peers.
In the last couple of years the Gross Margin of HUN has declined.
Industry RankSector Rank
OM 0.67%
PM (TTM) N/A
GM 14.03%
OM growth 3Y-24.67%
OM growth 5Y-31.18%
PM growth 3Y-54.18%
PM growth 5Y-17.9%
GM growth 3Y-6.74%
GM growth 5Y-8.57%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HUN is destroying value.
The number of shares outstanding for HUN has been reduced compared to 1 year ago.
Compared to 5 years ago, HUN has less shares outstanding
HUN has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.98 indicates that HUN is not a great score, but indicates only limited risk for bankruptcy at the moment.
HUN has a Altman-Z score of 1.98. This is comparable to the rest of the industry: HUN outperforms 47.62% of its industry peers.
HUN has a debt to FCF ratio of 28.56. This is a negative value and a sign of low solvency as HUN would need 28.56 years to pay back of all of its debts.
HUN has a Debt to FCF ratio (28.56) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that HUN is somewhat dependend on debt financing.
HUN has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: HUN outperforms 58.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 28.56
Altman-Z 1.98
ROIC/WACC0.07
WACC7.41%

2.3 Liquidity

A Current Ratio of 1.55 indicates that HUN should not have too much problems paying its short term obligations.
HUN has a worse Current ratio (1.55) than 71.43% of its industry peers.
HUN has a Quick Ratio of 1.55. This is a bad value and indicates that HUN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, HUN is doing worse than 72.62% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.55
Quick Ratio 0.98

4

3. Growth

3.1 Past

The earnings per share for HUN have decreased strongly by -95.52% in the last year.
The earnings per share for HUN have been decreasing by -35.91% on average. This is quite bad
Looking at the last year, HUN shows a very negative growth in Revenue. The Revenue has decreased by -19.66% in the last year.
HUN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.28% yearly.
EPS 1Y (TTM)-95.52%
EPS 3Y-28.38%
EPS 5Y-35.91%
EPS Q2Q%-130%
Revenue 1Y (TTM)-19.66%
Revenue growth 3Y0.51%
Revenue growth 5Y-4.28%
Sales Q2Q%-8.47%

3.2 Future

The Earnings Per Share is expected to grow by 78.98% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y35.77%
EPS Next 2Y110.21%
EPS Next 3Y78.98%
EPS Next 5YN/A
Revenue Next Year3.26%
Revenue Next 2Y5.48%
Revenue Next 3Y5.32%
Revenue Next 5Y8.52%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 232.60 indicates a quite expensive valuation of HUN.
Based on the Price/Earnings ratio, HUN is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of HUN to the average of the S&P500 Index (28.39), we can say HUN is valued expensively.
A Price/Forward Earnings ratio of 14.62 indicates a correct valuation of HUN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.91, HUN is valued a bit cheaper.
Industry RankSector Rank
PE 232.6
Fwd PE 14.62

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HUN is valued a bit more expensive than 65.48% of the companies in the same industry.
HUN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HUN is more expensive than 61.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 55.89
EV/EBITDA 17.86

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HUN does not grow enough to justify the current Price/Earnings ratio.
HUN's earnings are expected to grow with 78.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.5
PEG (5Y)N/A
EPS Next 2Y110.21%
EPS Next 3Y78.98%

8

5. Dividend

5.1 Amount

HUN has a Yearly Dividend Yield of 4.22%, which is a nice return.
Compared to an average industry Dividend Yield of 3.11, HUN pays a better dividend. On top of this HUN pays more dividend than 86.90% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, HUN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.22%

5.2 History

On average, the dividend of HUN grows each year by 7.58%, 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)7.58%
Div Incr Years3
Div Non Decr Years16

5.3 Sustainability

HUN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
HUN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-189.89%
EPS Next 2Y110.21%
EPS Next 3Y78.98%

HUNTSMAN CORP

NYSE:HUN (6/14/2024, 7:14:44 PM)

After market: 23.26 0 (0%)

23.26

-0.88 (-3.65%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.02B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.22%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 232.6
Fwd PE 14.62
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.5
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.18%
ROE -2.85%
ROCE
ROIC
ROICexc
ROICexgc
OM 0.67%
PM (TTM) N/A
GM 14.03%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.55
Quick Ratio 0.98
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-95.52%
EPS 3Y-28.38%
EPS 5Y
EPS Q2Q%
EPS Next Y35.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.66%
Revenue growth 3Y0.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y