Huntsman Corporation
HUN
$14.06
+5.56%
Huntsman Corporation is a US-based manufacturer of differentiated organic chemical products, operating in the Basic Materials sector within the Chemicals industry. Its core product portfolio includes Methyl diphenyl diisocyanate (MDI), Amines, Maleic anhydride, and Epoxy-based polymer formulations, which are essential components for adhesives, aerospace, automotive, and construction products. The company is a significant player in the global polyurethanes market, deriving the majority of its revenue from its Polyurethanes segment, which positions it as a key supplier in a cyclical and competitive industry. The current investor narrative revolves around its operational turnaround and financial recovery, as recent quarterly results show a challenging period of revenue contraction and net losses, yet the stock has experienced a significant technical rally, suggesting a debate between fundamental weakness and a potential value-driven rebound.…
HUN
Huntsman Corporation
$14.06
Related headlines
HUN 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Huntsman Corporation's 12-month outlook, with a consensus price target around $18.28 and implied upside of +30.0% versus the current price.
Average Target
$18.28
9 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
9
covering this stock
Price Range
$11 - $18
Analyst target range
Analyst coverage for Huntsman is limited, with only 8 analysts providing estimates, indicating it is a mid-cap stock with constrained institutional interest, which can lead to higher volatility and less efficient price discovery. The consensus sentiment appears neutral to cautious, as evidenced by recent institutional rating actions from firms like JP Morgan (downgraded to Neutral from Overweight) and Mizuho (maintained Underperform), with no strong bullish upgrades in the recent data. The average revenue estimate for the next period is approximately $6.39 billion, and the average EPS estimate is $0.45, but explicit price targets and a consensus recommendation are not provided in the data, making a precise upside/downside calculation impossible. The implications of limited coverage and a lack of bullish price targets suggest that while the stock's technical rally has been powerful, the fundamental story has not yet convinced the analyst community, leaving the investment thesis highly dependent on a successful company-specific turnaround or a broader cyclical recovery in the chemicals sector.
Bulls vs Bears: HUN Investment Factors
The investment case for HUN is a classic battle between deep-value technical momentum and deteriorating fundamentals. The bull side currently has stronger near-term evidence, driven by a powerful 77% six-month rally from oversold levels and an exceptionally low valuation (PS 0.30) that prices in extreme distress. However, the bear case is grounded in concrete operational weakness: declining revenue, negative profitability, and margin compression. The single most important tension is whether the analyst-projected sharp rebound to profitability (forward EPS $0.45) materializes to justify the recent price surge, or if the revenue decline and losses persist, validating the short sellers' skepticism and leading to a retest of lower prices.
Bullish
- Deep Value Valuation: HUN trades at a Price-to-Sales ratio of 0.30 and a Price-to-Book ratio of 0.63, which are near the bottom of its historical range and represent a significant discount to the chemicals industry. This valuation implies the market has priced in extreme pessimism, offering substantial upside if a cyclical recovery materializes.
- Powerful Technical Recovery: The stock has rallied 76.69% over the past six months and 35.21% over three months, significantly outperforming the S&P 500. This strong momentum from deeply oversold levels suggests a major shift in sentiment and potential short-covering, with the price now 60% of the way to its 52-week high of $15.85.
- Positive Free Cash Flow: Despite net losses, the company generated $116 million in trailing twelve-month free cash flow and $76 million in operating cash flow in Q4 2025. This provides a crucial financial lifeline, supporting the dividend and offering flexibility during the cyclical downturn.
- Analyst Expects Profitability Rebound: Analysts forecast a sharp recovery to profitability with an average forward EPS estimate of $0.45, compared to a trailing EPS of -$0.16. While speculative, this expectation of a $0.61 per share earnings swing is a key driver for the stock's recent re-rating.
Bearish
- Severe Profitability Pressure: The company reported a net loss of $96 million in Q4 2025, with a gross margin of only 12.1%, down from 13.97% in Q3. The negative ROE of -10% and net margin of -4.84% indicate the company is currently destroying shareholder value amidst a deep cyclical downturn.
- Persistent Revenue Decline: Revenue contracted 6.68% year-over-year in Q4 2025 to $1.355 billion, continuing a multi-quarter downtrend from $1.57 billion in Q2 2024. This demonstrates HUN's high sensitivity to weak industrial demand in its core polyurethanes and construction markets.
- High Short Interest & Volatility: A short ratio of 3.56 indicates significant bearish sentiment, and the stock has experienced a maximum drawdown of 54.2%. This high volatility and skepticism from short sellers reflect the fundamental uncertainty and risk of a failed turnaround.
- Limited Analyst Conviction: With only 8 analysts covering the stock and recent actions including a JP Morgan downgrade to Neutral and Mizuho maintaining Underperform, institutional sentiment remains cautious. The lack of bullish price targets suggests the fundamental recovery story is not yet widely believed.
HUN Technical Analysis
The stock is in a pronounced recovery trend from deeply oversold levels, having rallied 76.69% over the past six months, though it remains 9.42% below its price from one year ago. Currently trading at $14.63, the price sits at approximately 60% of its 52-week range ($7.30 to $15.85), indicating it has recovered substantially from its lows but still has significant room to the high, suggesting potential for further upside if the recovery narrative holds. Recent momentum is exceptionally strong, with the stock up 35.21% over three months and 12.37% over one month, significantly outperforming the S&P 500's respective gains of 4.14% and 9.98%, signaling accelerating buying interest and a powerful short-term uptrend that diverges positively from its weaker one-year performance. Key technical support is anchored at the 52-week low of $7.30, while immediate resistance is at the 52-week high of $15.85; a decisive breakout above $15.85 would confirm a full recovery and potentially target new highs, whereas a failure could see a retest of higher support levels established during the recent rally. The stock exhibits high volatility, with a short ratio of 3.56 indicating significant bearish sentiment that could fuel further short-covering rallies, and its massive 54.2% maximum drawdown highlights the extreme risk and reward profile inherent in this name.
Beta
0.64
0.64x market volatility
Max Drawdown
-44.9%
Largest decline past year
52-Week Range
$7-$16
Price range past year
Annual Return
+15.2%
Cumulative gain past year
| Period | HUN Return | S&P 500 |
|---|---|---|
| 1m | +3.0% | +4.6% |
| 3m | +10.8% | +8.3% |
| 6m | +65.0% | +12.5% |
| 1y | +15.2% | +25.0% |
| ytd | +38.0% | +8.7% |
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HUN Fundamental Analysis
Revenue is in a clear downtrend, with Q4 2025 revenue of $1.355 billion representing a 6.68% year-over-year decline, continuing a multi-quarter pattern of contraction from $1.57 billion in Q2 2024. The Diversified segment (primarily Polyurethanes) generated $1.121 billion in the latest period, indicating it remains the dominant but challenged revenue driver, while the Specialty segment contributed $231 million, showing the company's exposure to broader industrial demand cycles. The persistent revenue decline suggests the company is navigating a difficult cyclical downturn in its core chemical markets, which is the central challenge for the investment case. Profitability is severely pressured, with the company reporting a net loss of $96 million in Q4 2025 and a gross margin of only 12.1%, which is low for the chemicals industry and reflects significant cost pressures or pricing weakness. The net loss has widened sequentially from -$25 million in Q3 2025, and the gross margin of 12.1% is down from 13.97% in the prior quarter, indicating margin compression is ongoing. With a trailing twelve-month free cash flow of $116 million and an ROE of -10%, the company is currently destroying shareholder value, though the positive FCF provides a crucial lifeline. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.99, and liquidity is adequate with a current ratio of 1.30, but the negative ROE and net margin of -4.84% underscore fundamental stress that the positive operating cash flow of $76 million in Q4 2025 is only partially mitigating.
Quarterly Revenue
$1.4B
2025-12
Revenue YoY Growth
-0.06%
YoY Comparison
Gross Margin
+0.12%
Latest Quarter
Free Cash Flow
$116000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is HUN Overvalued?
Given the company's negative net income, the primary valuation metric selected is the Price-to-Sales (PS) ratio. The trailing PS ratio is 0.30, which is exceptionally low and reflects the market's deep discount on the stock due to its lack of profitability and declining revenue. A forward PE ratio of 105.4 is also cited, but this is not a reliable primary metric due to the minimal and uncertain forward EPS estimate of $0.45; the vast gap between the negative trailing PE of -6.29 and the high forward PE implies the market is pricing in a sharp but speculative recovery to profitability. Compared to industry averages, the stock's PS ratio of 0.30 represents a steep discount, though a precise industry average PS is not provided in the data; its low Price-to-Book ratio of 0.63 and Price-to-Cash Flow ratio of 5.99 further signal it is valued as a deep-value or distressed asset relative to sector peers. This discount is likely justified by the company's poor profitability metrics, including a net margin of -4.84% and an ROE of -10%, but also presents a potential opportunity if a cyclical recovery materializes. Historically, the stock's current PS ratio of 0.30 is near the very bottom of its own historical range, which has seen PS ratios as high as 3.46 in recent years, indicating the market is pricing in extremely pessimistic expectations. Trading at a fraction of its historical sales multiple suggests the stock is in a deep value zone, but it also reflects fundamental deterioration that must be reversed for a re-rating to occur.
PE
-6.3x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -136x~64x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: HUN faces significant financial stress from its ongoing profitability crisis. The company's net loss widened to $96 million in Q4 2025 from $25 million in Q3, while gross margins compressed to 12.1%. With a Return on Equity of -10%, the business is currently eroding capital. Revenue concentration in the cyclical Polyurethanes segment, which drove 83% of latest-period sales, exposes the company to prolonged downturns in construction and automotive markets. While positive free cash flow of $116 million TTM provides a buffer, the debt-to-equity ratio of 0.99 indicates moderate leverage that could become burdensome if losses continue.
Market & Competitive Risks: The primary market risk is valuation compression if the anticipated earnings recovery fails. The stock's forward P/E of 105.4 is astronomically high and entirely dependent on achieving the $0.45 EPS estimate; any shortfall could trigger a severe multiple contraction. Competitively, HUN operates in a low-margin, commodity-chemical segment where pricing power is weak, as evidenced by the sub-13% gross margin. The stock's high short ratio of 3.56 and 54.2% max drawdown highlight its vulnerability to negative sentiment shifts and sector rotation away from cyclical industrials, especially if macroeconomic growth slows.
Worst-Case Scenario: The worst-case scenario involves a continuation of the current downtrend without a cyclical recovery. This would see Q4's revenue decline and margin compression persist, leading to consistent quarterly losses, a dividend cut despite the recent announcement, and a breach of debt covenants. Analyst sentiment, already cautious, would turn overtly negative, triggering further downgrades. In this adverse scenario, the stock could realistically retest its 52-week low of $7.30, representing a downside of approximately -50% from the current price of $14.63. The high short interest would amplify the selling pressure, potentially leading to a new low below the $7.30 support level.