HUN  Huntsman Corporation

Exchange

NYSE

Sector

Basic Industries

Industry

Major Chemicals

Market Cap.

5.49B

Vuru Grade

24.59/100

Current Price

$23.02
+1.68 (+7.87%)

Growth Price

$23.40
Fairly valued

Company Metrics

  • P/E 16.89
  • P/S 0.53
  • P/B 3.92
  • EPS 1.36
  • Cash ROIC 3.96%
  • Cash Ratio 0.23
  • Dividend 0.5 / 2.34%
  • Avg. Vol. 2.41M
  • Shares 238.49M
  • Market Cap. 5.49B

Company Description

Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. Its products comprise a range of chemicals and formulations, which are marketed to consumer and industrial customers. The company's products are used in various applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Huntsman Receives IRS Ruling Allowing it to Retain 40% Economic Interest in ...
PR Newswire (press release) - Feb 16, 2017
THE WOODLANDS, Texas, Feb. 16, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) received today a Private Letter Ruling from the IRS allowing it to retain a 40% economic interest in the tax-free spin-off of Venator Materials Corporation.
Huntsman Corporation (HUN) Moves Higher on Volume Spike for February 21
Equities.com - Feb 21, 2017
Huntsman Corporation (HUN) traded on unusually high volume on Feb. 21, as the stock gained 7.87% to close at $23.02. On the day, Huntsman Corporation saw 4.29 million shares trade hands on 25,204 trades. Considering that the stock averages only a ...
Today's Brokerage Rating: Huntsman Corporation (HUN), The AES Corporation (AES) - StockNewsJournal
Stock for Your Case: Huntsman Corporation (NYSE:HUN) - TopChronicle
Huntsman's Pori, Finland Facility Experiences Fire
PR Newswire (press release) - Jan 31, 2017
THE WOODLANDS, Texas, Jan. 31, 2017 /PRNewswire/ -- A fire started January 30 at Huntsman Corporation's (NYSE: HUN) titanium dioxide manufacturing facility in Pori, Finland.
Huntsman Corporation (HUN) Stock Halted: We're Following The Story - CNA Finance (press release)
Stock on Trader's Radar: Huntsman Corporation (NYSE:HUN) - TopChronicle
Venator - Large Upside Potential Post Huntsman Spin-Off
Seeking Alpha - Jan 25, 2017
During Q3 2016, Huntsman Corporation (NYSE:HUN) announced its plans to spin off its pigments and additives division as a separate publicly traded company, under the new name "Venator".
Huntsman to Discuss Fourth Quarter 2016 Results on February 15, 2017 - PR Newswire (press release)
Huntsman Corporation (NYSE:HUN) Met Earnings 0 times - FactsReporter
Huntsman Corporation (HUN) Moves Lower on Volume Spike for February 15
Equities.com - Feb 15, 2017
Huntsman Corporation (HUN) traded on unusually high volume on Feb. 15, as the stock lost 2.39% to close at $21.21. On the day, Huntsman Corporation saw 6.04 million shares trade hands on 35,968 trades. Considering that the stock averages only a daily ...
Drilling Down Into Huntsman Corporation (HUN) - StockNewsJournal
Huntsman Corporation (HUN) Announces Quarterly Earnings Results - The Cerbat Gem
Technicals in Focus for Huntsman Corporation (HUN)
The USA Commerce - 10 hours ago
We have gathered the technical data on Huntsman Corporation (HUN), and see some interesting trends in the stock's behavior of late.
Huntsman Announces Fourth Quarter and Full Year 2016 Results; Delivers a ...
PR Newswire (press release) - Feb 15, 2017
Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2016 results with revenues of $2,395 million, net income of $137 million and adjusted EBITDA of $256 million.
Huntsman (HUN) Q4 2016 Results - Earnings Call Transcript - Seeking Alpha
Fire Hits Huntsman's Titanium Dioxide Manufacturing Facility in Pori, Finland - Ink World Magazine (press release) (blog)
Huntsman Corporation: Huntsman Announces First Quarter 2017 Common Dividend ...
The Wall Street Transcript - Feb 9, 2017
THE WOODLANDS, Texas, Feb. 9, 2017 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced that its board of directors has declared a $0.125 per share cash dividend on its common stock.
Huntsman Announces First Quarter 2017 Common Dividend and 2017 Annual Meeting ... - Yahoo Finance
Huntsman Corporation (HUN) to Issue $0.13 Quarterly Dividend - The Cerbat Gem
Trading Options During Earnings in Huntsman Corporation (NYSE:HUN)
CML News - Feb 21, 2017
We're going to examine buying and selling out of the money strangles in Huntsman Corporation and find out once and for all what the winning trades have been during earnings releases.
Huntsman Corp positive amid Q4 earnings growth
just-style.com (subscription) - Feb 20, 2017
Chemicals manufacturer Huntsman Corporation has offered a positive outlook as it revealed higher earnings and sales in its fourth-quarter, with a solid performance from its advanced materials and textile effects business.
Q2 2017 EPS Estimates for Huntsman Corporation Increased by Analyst (HUN) - Chaffey Breeze
Lookout for Price Target? Huntsman Corporation (HUN), Xylem Inc. (XYL) - StockNewsJournal
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for HUN to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate HUN's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$23.02 Current Price

$23.40 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: -0.55%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$11.33 Book Price

Overvalued by 50.77%


Poor Cash Return on Invested Capital over the past 5 years

HUN has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

HUN has only created $3.96 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 362.00M 237.00M 159.00M -88.00M 667.00M
divided by
Invested Capital 6.32B 6.51B 7.81B 7.65B 7.00B
Cash ROIC 5.73% 3.64% 2.04% -1.15% 9.53%

Excellent Return on Equity over the past 5 years

Over the past 5 years, HUN has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

HUN has generated $16.87 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 371.00M 149.00M 345.00M 126.00M 357.00M
divided by
Stockholders' Equity 1.77B 1.98B 1.78B 1.44B 1.29B
Return on Equity 20.92% 7.53% 19.40% 8.74% 27.74%

Good Business Performance over the past 10 years

It's likely HUN has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is HUN has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

HUN has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -716.60M 349.00M 915.00M -294.00M 35.00M 362.00M 237.00M 159.00M -88.00M 667.00M

Weak Balance Sheet

HUN's financial position is not ideal. The key is to check whether HUN is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 154.00M 657.00M 1.75B 966.00M 554.00M 387.00M 520.00M 860.00M 257.00M 414.00M
Current Assets 3.10B 3.24B 4.14B 4.01B 3.95B 4.12B 4.16B 5.04B 3.83B 3.56B
Total Assets 8.17B 8.06B 8.63B 8.71B 8.66B 8.88B 9.19B 11.00B 9.82B 9.19B
Current Liabilities 1.98B 1.61B 1.81B 2.05B 1.83B 2.18B 2.16B 2.33B 1.92B 1.78B
Total Liabilities 6.34B 6.45B 6.78B 6.92B 7.00B 7.11B 7.21B 9.22B 8.38B 7.90B
Stockholder' Equity 1.83B 1.61B 1.84B 1.79B 1.66B 1.77B 1.98B 1.78B 1.44B 1.29B
Current Ratio 1.57 2.02 2.29 1.95 2.16 1.89 1.93 2.16 2.00 2.00
TL-to-TA 0.78 0.80 0.79 0.79 0.81 0.80 0.78 0.84 0.85 0.86

Consistent Reinvestment of Profits over the past 10 years

HUN has consistently retained profits. This may put HUN in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, HUN can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -1.54B -1.03B -1.02B -1.09B -947.00M -687.00M -687.00M -493.00M -528.00M -325.00M
Retained Earnings Growth - 33.06% 1.55% -7.39% 13.12% 27.46% - 28.24% -7.10% 38.45%

Highly Competitive Industry over the past 10 years

It's likely that HUN is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely HUN invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.06 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -165.60M 595.00M 106.00M 33.00M 250.00M 371.00M 149.00M 345.00M 126.00M 357.00M
divided by
Revenue 9.65B 10.22B 7.76B 9.25B 11.22B 11.19B 11.08B 11.58B 10.30B 9.66B
Net Profit Margin -1.72% 5.82% 1.37% 0.36% 2.23% 3.32% 1.34% 2.98% 1.22% 3.70%

Inconsistent Gross Profit Margins over the past 10 years

HUN has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$24.23 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 1.54B 1.26B 1.07B 1.46B 11.06B 2.03B 1.75B 1.92B 1.85B 1.68B
divided by
Revenue 9.65B 10.22B 7.76B 9.25B 11.22B 11.19B 11.08B 11.58B 10.30B 9.66B
Gross Margin 15.95% 12.37% 13.76% 15.79% 98.52% 18.18% 15.82% 16.57% 17.94% 17.38%

High Capital Intensity over the past 10 years

HUN spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

260.13% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 665.10M 418.00M 189.00M 236.00M 330.00M 412.00M 471.00M 601.00M 663.00M 421.00M
divided by
Net Income -165.60M 595.00M 106.00M 33.00M 250.00M 371.00M 149.00M 345.00M 126.00M 357.00M
Capital Expenditure Ratio -401.63% 70.25% 178.30% 715.15% 132.00% 111.05% 316.11% 174.20% 526.19% 117.93%

Very Strong Dividend History over the past 10 years

HUN has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests HUN is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 102.80M 97.00M 96.00M 96.00M 105.00M 96.00M 120.00M 121.00M 135.00M 120.00M
divided by
Shares Outstanding 232.80M 234.26M 238.30M 236.00M 241.70M 240.60M 242.40M 246.00M 245.40M 239.60M
Dividend Paid Per Share 0.44 0.41 0.40 0.41 0.43 0.40 0.50 0.49 0.55 0.50
Price at Year End 21.32 3.01 10.72 15.07 10.00 15.62 24.33 23.32 11.27 19.08
Dividend Yield 2.07% 13.76% 3.76% 2.70% 4.34% 2.55% 2.03% 2.11% 4.88% 2.62%

History of Stock Buybacks over the past 10 years

HUN has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 232.80M 234.26M 238.30M 236.00M 241.70M 240.60M 242.40M 246.00M 245.40M 239.60M
Stock Bought Back - -0.62% -1.69% 0.97% -2.36% 0.46% -0.74% -1.46% 0.24% 2.42%
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