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 does not seem to be growing, but still is valued expensively. 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.
HUN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HUN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.17%, HUN is doing worse than 67.06% of the companies in the same industry.
The Return On Equity of HUN (-5.37%) is worse than 65.88% of its industry peers.
The Return On Invested Capital of HUN (1.19%) is worse than 72.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HUN is below the industry average of 6.83%.
| 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
With a Operating Margin value of 1.44%, HUN is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
HUN's Operating Margin has declined in the last couple of years.
HUN has a worse Gross Margin (14.49%) than 72.94% of its industry peers.
In the last couple of years the Gross Margin of HUN has declined.
| 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.
The number of shares outstanding for HUN has been increased compared to 1 year ago.
Compared to 5 years ago, HUN has less shares outstanding
HUN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that HUN is in the distress zone and has some risk of bankruptcy.
HUN has a Altman-Z score of 1.69. This is in the lower half of the industry: HUN underperforms 60.00% of its industry peers.
The Debt to FCF ratio of HUN is 25.71, which is on the high side as it means it would take HUN, 25.71 years of fcf income to pay off all of its debts.
HUN has a Debt to FCF ratio (25.71) which is in line with its industry peers.
A Debt/Equity ratio of 0.57 indicates that HUN is somewhat dependend on debt financing.
HUN has a Debt to Equity ratio of 0.57. This is comparable 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 | 1.69 |
ROIC/WACC0.15
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.48 indicates that HUN should not have too much problems paying 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.
A Quick Ratio of 0.82 indicates that HUN may have some problems paying its short term obligations.
HUN has a worse Quick ratio (0.82) than 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%.
Looking at the last year, HUN shows a small growth in Revenue. The Revenue has grown by 0.02% in the last year.
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 139.11% yearly.
Based on estimates for the next years, HUN will show a small growth in Revenue. The Revenue will grow by 2.45% on average per year.
EPS Next Y-461.79%
EPS Next 2Y133.73%
EPS Next 3Y139.11%
EPS Next 5YN/A
Revenue Next Year-1.73%
Revenue Next 2Y1.69%
Revenue Next 3Y2.45%
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
The Price/Earnings Ratio is negative for HUN. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 46.70, the valuation of HUN can be described as expensive.
69.41% of the companies in the same industry are cheaper than HUN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HUN to the average of the S&P500 Index (36.44), we can say HUN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 46.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUN is valued a bit cheaper than 63.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HUN is valued a bit cheaper than 63.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.88 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
HUN's earnings are expected to grow with 139.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y133.73%
EPS Next 3Y139.11%
5. Dividend
5.1 Amount
HUN has a Yearly Dividend Yield of 8.42%, which is a nice return.
HUN's Dividend Yield is rather good when compared to the industry average which is at 3.53. HUN pays more dividend than 92.94% of the companies in the same industry.
HUN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.42% |
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
The earnings of HUN are negative and hence is the payout ratio. HUN will probably not be able to sustain this dividend level.
The dividend of HUN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-110.83%
EPS Next 2Y133.73%
EPS Next 3Y139.11%
11.32
+0.02 (+0.18%)
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 Cap1.97B
Analysts64.76
Price Target14.36 (26.86%)
Short Float %5.95%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.42% |
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)-6.55%
EPS NQ rev (3m)-253.27%
EPS NY rev (1m)-65.36%
EPS NY rev (3m)-454.35%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-5.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 46.7 | ||
| P/S | 0.33 | ||
| P/FCF | 25.88 | ||
| P/OCF | 7.74 | ||
| P/B | 0.67 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)-0.12
EYN/A
EPS(NY)0.24
Fwd EY2.14%
FCF(TTM)0.44
FCFY3.86%
OCF(TTM)1.46
OCFY12.91%
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 | 1.69 |
F-Score5
WACC8.07%
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-461.79%
EPS Next 2Y133.73%
EPS Next 3Y139.11%
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-1.73%
Revenue Next 2Y1.69%
Revenue Next 3Y2.45%
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%