HUNTSMAN CORP (HUN)
US4470111075 - Common Stock
We assign a fundamental rating of 3 out of 10 to HUN. HUN was compared to 85 industry peers in the Chemicals industry. HUN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HUN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HUN was profitable.
HUN had a positive operating cash flow in the past year.
In the past 5 years HUN has always been profitable.
HUN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HUN has a Return On Assets of 1.10%. This is in the lower half of the industry: HUN underperforms 63.53% of its industry peers.
HUN has a Return On Equity of 2.38%. This is in the lower half of the industry: HUN underperforms 63.53% of its industry peers.
HUN has a worse Return On Invested Capital (2.18%) than 69.41% of its industry peers.
HUN had an Average Return On Invested Capital over the past 3 years of 6.65%. This is in line with the industry average of 7.81%.
The 3 year average ROIC (6.65%) for HUN is well above the current ROIC(2.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.38% | ||
| ROIC | 2.18% |
ROA(3y)9.53%
ROA(5y)7.92%
ROE(3y)22.09%
ROE(5y)20.19%
ROIC(3y)6.65%
ROIC(5y)7.11%
1.3 Margins
The Profit Margin of HUN (1.27%) is worse than 65.88% of its industry peers.
HUN's Profit Margin has declined in the last couple of years.
The Operating Margin of HUN (2.64%) is worse than 72.94% of its industry peers.
HUN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 14.85%, HUN is doing worse than 75.29% of the companies in the same industry.
In the last couple of years the Gross Margin of HUN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.64% | ||
| PM (TTM) | 1.27% | ||
| GM | 14.85% |
OM growth 3Y14.48%
OM growth 5Y-3.58%
PM growth 3Y-11.49%
PM growth 5Y-9.2%
GM growth 3Y-1.77%
GM growth 5Y-4.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HUN is destroying value.
Compared to 1 year ago, HUN has less shares outstanding
Compared to 5 years ago, HUN has less shares outstanding
Compared to 1 year ago, HUN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.32 indicates that HUN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HUN (2.32) is comparable to the rest of the industry.
HUN has a debt to FCF ratio of 13.16. This is a negative value and a sign of low solvency as HUN would need 13.16 years to pay back of all of its debts.
HUN has a Debt to FCF ratio of 13.16. This is comparable to the rest of the industry: HUN outperforms 52.94% of its industry peers.
HUN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
HUN has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: HUN outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 13.16 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.26
WACC8.4%
2.3 Liquidity
HUN has a Current Ratio of 1.88. This is a normal value and indicates that HUN is financially healthy and should not expect problems in meeting its short term obligations.
HUN has a Current ratio (1.88) which is in line with its industry peers.
A Quick Ratio of 1.14 indicates that HUN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, HUN is in line with its industry, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for HUN have decreased strongly by -85.23% in the last year.
The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
The Revenue for HUN has decreased by -25.07% in the past year. This is quite bad
HUN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.23% yearly.
EPS 1Y (TTM)-85.23%
EPS 3Y21.62%
EPS 5Y2.47%
EPS growth Q2Q-78.87%
Revenue 1Y (TTM)-25.07%
Revenue growth 3Y5.68%
Revenue growth 5Y3.23%
Revenue growth Q2Q-25.11%
3.2 Future
Based on estimates for the next years, HUN will show a decrease in Earnings Per Share. The EPS will decrease by -6.87% on average per year.
Based on estimates for the next years, HUN will show a small growth in Revenue. The Revenue will grow by 0.19% on average per year.
EPS Next Y-74.87%
EPS Next 2Y-25.22%
EPS Next 3Y-6.87%
EPS Next 5YN/A
Revenue Next Year-24.05%
Revenue Next 2Y-9.23%
Revenue Next 3Y-3.43%
Revenue Next 5Y0.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.93, the valuation of HUN can be described as expensive.
HUN's Price/Earnings ratio is a bit more expensive when compared to the industry. HUN is more expensive than 69.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of HUN to the average of the S&P500 Index (24.97), we can say HUN is valued expensively.
The Price/Forward Earnings ratio is 13.87, which indicates a correct valuation of HUN.
HUN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HUN to the average of the S&P500 Index (20.05), we can say HUN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.93 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HUN is on the same level as its industry peers.
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 | 36.41 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
HUN's earnings are expected to decrease with -6.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)16.56
EPS Next 2Y-25.22%
EPS Next 3Y-6.87%
5. Dividend
5.1 Amount
HUN has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 3.89, HUN pays a better dividend. On top of this HUN pays more dividend than 81.18% of the companies listed in the same industry.
HUN's Dividend Yield is a higher than the S&P500 average which is at 2.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
On average, the dividend of HUN grows each year by 11.25%, 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)11.25%
Div Incr Years3
Div Non Decr Years16
5.3 Sustainability
207.41% of the earnings are spent on dividend by HUN. This is not a sustainable payout ratio.
HUN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP207.41%
EPS Next 2Y-25.22%
EPS Next 3Y-6.87%
HUNTSMAN CORP
NYSE:HUN (12/8/2023, 7:04:00 PM)
After market: 24.97 0 (0%)24.97
-0.18 (-0.72%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.93 | ||
| Fwd PE | 13.87 | ||
| 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)N/A
PEG (5Y)16.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.64% | ||
| PM (TTM) | 1.27% | ||
| GM | 14.85% | ||
| 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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.14 | ||
| 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)
Growth
EPS 1Y (TTM)-85.23%
EPS 3Y21.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y-74.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-25.07%
Revenue growth 3Y5.68%
Revenue growth 5Y
Revenue growth 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