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. 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.
Of the past 5 years HUN 4 years were profitable.
HUN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HUN's Return On Assets of -4.72% is on the low side compared to the rest of the industry. HUN is outperformed by 70.59% of its industry peers.
Looking at the Return On Equity, with a value of -12.03%, HUN is doing worse than 69.41% of the companies in the same industry.
With a Return On Invested Capital value of 0.72%, HUN is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for HUN is below the industry average of 6.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.72% | ||
| ROE | -12.03% | ||
| ROIC | 0.72% |
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 Operating Margin of 0.87%. This is in the lower half of the industry: HUN underperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of HUN has declined.
HUN has a worse Gross Margin (13.74%) than 75.29% of its industry peers.
HUN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.87% | ||
| PM (TTM) | N/A | ||
| GM | 13.74% |
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.
HUN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HUN has been reduced compared to 5 years ago.
HUN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that HUN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.57, HUN is doing worse than 64.71% of the companies in the same industry.
HUN has a debt to FCF ratio of 15.19. This is a negative value and a sign of low solvency as HUN would need 15.19 years to pay back of all of its debts.
HUN has a Debt to FCF ratio (15.19) which is in line with its industry peers.
HUN has a Debt/Equity ratio of 0.59. This is a neutral value indicating HUN is somewhat dependend on debt financing.
The Debt to Equity ratio of HUN (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 15.19 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.09
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.43 indicates that HUN should not have too much problems paying its short term obligations.
HUN's Current ratio of 1.43 is on the low side compared to the rest of the industry. HUN is outperformed by 70.59% of its industry peers.
A Quick Ratio of 0.85 indicates that HUN may have some problems paying its short term obligations.
HUN has a worse Quick ratio (0.85) than 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for HUN have decreased strongly by -2400.00% in the last year.
HUN shows a decrease in Revenue. In the last year, the revenue decreased by -1.56%.
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)-2400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-242.86%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y-7.68%
Revenue growth 5Y-2.35%
Sales Q2Q%-7.37%
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 139.11% on average per year.
Based on estimates for the next years, HUN will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-461.79%
EPS Next 2Y133.73%
EPS Next 3Y139.11%
EPS Next 5YN/A
Revenue Next Year-2.12%
Revenue Next 2Y1.35%
Revenue Next 3Y2.25%
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.
HUN is valuated quite expensively with a Price/Forward Earnings ratio of 38.12.
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 similar valuation than the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.12 |
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.
HUN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HUN is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HUN's earnings are expected to grow with 139.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y133.73%
EPS Next 3Y139.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.68%, HUN is a good candidate for dividend investing.
The stock price of HUN dropped by -23.32% 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.
Compared to an average industry Dividend Yield of 3.75, 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 2.40, HUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.68% |
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 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
HUN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of HUN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-51.63%
EPS Next 2Y133.73%
EPS Next 3Y139.11%
9.24
-0.28 (-2.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change0.37%
Ins Owners5.31%
Ins Owner Change4.6%
Market Cap1.61B
Analysts64.76
Price Target11.46 (24.03%)
Short Float %5.52%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.68% |
Yearly Dividend1.01
Dividend Growth(5Y)9.05%
DP-51.63%
Div Incr Years4
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.68%
Min EPS beat(2)-64.52%
Max EPS beat(2)-0.84%
EPS beat(4)1
Avg EPS beat(4)-53.28%
Min EPS beat(4)-152.09%
Max EPS beat(4)4.35%
EPS beat(8)1
Avg EPS beat(8)-32.62%
EPS beat(12)2
Avg EPS beat(12)-27.18%
EPS beat(16)6
Avg EPS beat(16)-17.7%
Revenue beat(2)0
Avg Revenue beat(2)-4.85%
Min Revenue beat(2)-6.25%
Max Revenue beat(2)-3.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-6.25%
Max Revenue beat(4)-0.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.96%
Revenue beat(12)2
Avg Revenue beat(12)-2.01%
Revenue beat(16)3
Avg Revenue beat(16)-2.37%
PT rev (1m)-7.92%
PT rev (3m)-25.11%
EPS NQ rev (1m)-4.99%
EPS NQ rev (3m)-258.93%
EPS NY rev (1m)-2.06%
EPS NY rev (3m)-3560.98%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-7.76%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-5.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.12 | ||
| P/S | 0.27 | ||
| P/FCF | 11.98 | ||
| P/OCF | 5.37 | ||
| P/B | 0.57 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)-0.46
EYN/A
EPS(NY)0.24
Fwd EY2.62%
FCF(TTM)0.77
FCFY8.35%
OCF(TTM)1.72
OCFY18.62%
SpS33.73
BVpS16.12
TBVpS10.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.72% | ||
| ROE | -12.03% | ||
| ROCE | 0.91% | ||
| ROIC | 0.72% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 0.95% | ||
| OM | 0.87% | ||
| PM (TTM) | N/A | ||
| GM | 13.74% | ||
| FCFM | 2.29% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 15.19 | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 57.69% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 0.64 | ||
| Cash Conversion | 88.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.57 |
F-Score5
WACC7.9%
ROIC/WACC0.09
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)-2400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-242.86%
EPS Next Y-461.79%
EPS Next 2Y133.73%
EPS Next 3Y139.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y-7.68%
Revenue growth 5Y-2.35%
Sales Q2Q%-7.37%
Revenue Next Year-2.12%
Revenue Next 2Y1.35%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
EBIT growth 1Y142.86%
EBIT growth 3Y-53.86%
EBIT growth 5Y-29.79%
EBIT Next Year121.13%
EBIT Next 3Y62.78%
EBIT Next 5YN/A
FCF growth 1Y-46.18%
FCF growth 3Y-49.41%
FCF growth 5Y-33.84%
OCF growth 1Y-37.71%
OCF growth 3Y-34.87%
OCF growth 5Y-21.76%