HUNTSMAN CORP (HUN) Stock Fundamental Analysis
NYSE:HUN - New York Stock Exchange, Inc. - US4470111075 - Common Stock - Currency: USD
Taking everything into account, HUN scores 3 out of 10 in our fundamental rating. HUN was compared to 85 industry peers in the Chemicals industry. Both the profitability and financial health of HUN have multiple concerns. HUN does not seem to be growing, but still is valued expensively. Finally HUN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HUN had negative earnings in the past year.
HUN had a positive operating cash flow in the past year.
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
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.
HUN's Return On Equity of -5.37% is on the low side compared to the rest of the industry. HUN is outperformed by 65.88% of its industry peers.
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
The Operating Margin of HUN (1.44%) is worse than 76.47% of its industry peers.
In the last couple of years the Operating Margin of HUN has declined.
HUN's Gross Margin of 14.49% is on the low side compared to the rest of the industry. HUN is outperformed by 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HUN is destroying value.
Compared to 1 year ago, HUN has more shares outstanding
HUN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HUN has a worse debt to assets ratio.
2.2 Solvency
HUN has an Altman-Z score of 1.66. This is a bad value and indicates that HUN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.66, HUN is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
HUN has a debt to FCF ratio of 25.71. This is a negative value and a sign of low solvency as HUN would need 25.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 25.71, HUN perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 25.71 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.15
WACC8.02%
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.
With a Current ratio value of 1.48, HUN is not doing good in the industry: 68.24% of the companies in the same industry are doing better.
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.
HUN's Quick ratio of 0.82 is on the low side compared to the rest of the industry. HUN is outperformed by 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%.
HUN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.02%.
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
HUN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 143.43% yearly.
Based on estimates for the next years, HUN will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
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
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.
A Price/Forward Earnings ratio of 39.86 indicates a quite expensive valuation of HUN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUN indicates a slightly more expensive valuation: HUN is more expensive than 69.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.29, HUN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 39.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HUN indicates a somewhat cheap valuation: HUN is cheaper than 63.53% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HUN is valued a bit cheaper than the industry average as 65.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.5 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
HUN's earnings are expected to grow with 143.43% in the coming years. This may justify a more expensive valuation.
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.
The stock price of HUN dropped by -35.02% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HUN's Dividend Yield is rather good when compared to the industry average which is at 3.75. HUN pays more dividend than 94.12% of the companies in the same industry.
HUN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.57% |
5.2 History
The dividend of HUN is nicely growing with an annual growth rate of 9.05%!
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 2Y138.41%
EPS Next 3Y143.43%
10.28
-0.36 (-3.38%)
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 Cap1.79B
Analysts64.76
Price Target14.36 (39.69%)
Short Float %5.21%
Short Ratio2.07
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)-31.72%
EPS NQ rev (1m)-94.27%
EPS NQ rev (3m)-225.74%
EPS NY rev (1m)-62.02%
EPS NY rev (3m)-205.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.59%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 39.86 | ||
| P/S | 0.3 | ||
| P/FCF | 23.5 | ||
| P/OCF | 7.03 | ||
| P/B | 0.61 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)-0.12
EYN/A
EPS(NY)0.26
Fwd EY2.51%
FCF(TTM)0.44
FCFY4.25%
OCF(TTM)1.46
OCFY14.22%
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 | 1.66 |
F-Score5
WACC8.02%
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%