HUNTSMAN CORP (HUN) Stock Fundamental Analysis
NYSE:HUN - New York Stock Exchange, Inc. - US4470111075 - Common Stock - Currency: USD
HUN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and financial health of HUN have multiple concerns. HUN has a expensive valuation and it also scores bad on growth. 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.
In the past 5 years HUN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -2.17%, HUN is not doing good in the industry: 67.06% of the companies in the same industry are doing better.
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.
The Return On Invested Capital of HUN (1.19%) is worse than 74.12% of its industry peers.
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 has a worse Gross Margin (14.49%) than 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
HUN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.67. This is a bad value and indicates that HUN is not financially healthy and even has some risk of bankruptcy.
HUN has a Altman-Z score (1.67) which is in line with its industry peers.
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.
HUN has a Debt to FCF ratio (25.71) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.57 indicates that HUN is somewhat dependend on debt financing.
HUN's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. HUN outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 25.71 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.15
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.48 indicates that HUN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, HUN is doing worse than 68.24% of the companies in the same industry.
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.
The Quick ratio of HUN (0.82) is worse than 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for HUN have decreased strongly by -220.00% in the last year.
Looking at the last year, HUN shows a small growth in Revenue. The Revenue has grown by 0.02% in the last year.
The Revenue has been decreasing by -2.35% on average over the past years.
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.
HUN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
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
The Price/Earnings Ratio is negative for HUN. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 41.30 indicates a quite expensive valuation of HUN.
HUN's Price/Forward 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.
HUN is valuated expensively when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 41.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUN is valued a bit cheaper than 64.71% of the companies 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 | 24.35 | ||
| EV/EBITDA | 9.25 |
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 9.00%, HUN is a good candidate for dividend investing.
The stock price of HUN dropped by -21.98% 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 3.57. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9% |
5.2 History
On average, the dividend of HUN grows each year by 9.05%, which is quite nice.
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.
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%
10.65
-0.46 (-4.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners89.13%
Inst Owner Change-0.02%
Ins Owners5.31%
Ins Owner Change4.6%
Market Cap1.85B
Analysts64.76
Price Target14.36 (34.84%)
Short Float %5.1%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9% |
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)-30.15%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)-233.72%
EPS NY rev (1m)-62.02%
EPS NY rev (3m)-447.2%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-7.71%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-5.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 41.3 | ||
| P/S | 0.31 | ||
| P/FCF | 24.35 | ||
| P/OCF | 7.29 | ||
| P/B | 0.63 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)-0.12
EYN/A
EPS(NY)0.26
Fwd EY2.42%
FCF(TTM)0.44
FCFY4.11%
OCF(TTM)1.46
OCFY13.73%
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 | 1.67 |
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%