Huntsman Corporation
HUN
$9.76
-19.14%
Huntsman Corporation is a global manufacturer of differentiated organic chemical products, including MDI, amines, maleic anhydride, and epoxy-based polymer formulations, serving industries such as adhesives, aerospace, automotive, and construction. The company operates through three segments—Polyurethanes, Performance Products, and Advanced Materials—with Polyurethanes being the primary revenue driver. As a mid-cap player in the chemicals sector, Huntsman is currently under scrutiny following its announced merger with Olin, which has raised concerns about shareholder dilution and strategic fit, while the company continues to navigate cyclical demand challenges and margin pressures.…
HUN
Huntsman Corporation
$9.76
Related headlines
Investment Opinion: Should I buy HUN Today?
Based on the analysis, HUN is rated a Hold. The stock offers a deep value proposition with a PS ratio of 0.30x and a dividend yield of 8.46%, but the negative earnings and merger uncertainty cap upside potential. The consensus analyst recommendation is 'Hold' with an average target price of $13.58, implying a 39.1% upside, but the wide range of targets (low $11.00, high $18.00) reflects high uncertainty.
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HUN 12-Month Price Forecast
The AI assessment is bearish due to deteriorating fundamentals and merger uncertainty. The stock's deep discount is not sufficient to offset the negative earnings trend and high forward valuation. Key developments to watch include merger progress, quarterly earnings, and margin trends. If the company shows signs of stabilization, the stance could upgrade to neutral; if losses widen, it would become more bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Huntsman Corporation's 12-month outlook, with a consensus price target around $13.33 and implied upside of +36.6% versus the current price.
Average Target
$13.33
0 analysts
Implied Upside
+36.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$11 - $16
Analyst target range
The target price range spans from $11.00 (low) to $18.00 (high), with the high target suggesting a potential recovery to previous levels if the Olin merger closes and synergies materialize, while the low target reflects downside risks from continued margin compression and integration challenges. Recent rating actions show a notable downgrade from JP Morgan (Overweight to Neutral) and a reiteration of Underperform by Mizuho, indicating growing skepticism. The wide spread between low and high targets (63.6% difference) signals high uncertainty around the merger's outcome and the cyclical recovery, which is typical for a company undergoing significant strategic transformation.
Bulls vs Bears: HUN Investment Factors
HUN presents a classic value trap scenario: deep valuation discounts and high dividend yield are offset by deteriorating fundamentals and merger-related uncertainty. The bear case currently has stronger evidence, as revenue declines, negative margins, and dilution concerns dominate the narrative. The most critical tension is whether the Olin merger will create value through synergies or destroy shareholder value through dilution and integration challenges. If the merger closes successfully and synergies materialize, the stock could re-rate significantly; otherwise, it may continue to drift lower. Investors should closely monitor merger developments and quarterly earnings for signs of stabilization.
Bullish
- Deep Valuation Discount: HUN trades at a price-to-sales ratio of 0.30x, significantly below the industry average of 1.0x, and a price-to-book ratio of 0.63x, indicating the market is pricing in substantial distress. This creates a potential margin of safety if the company stabilizes.
- Analyst Target Upside: The average analyst target price is $13.58, implying a 39.1% upside from the current price of $9.76. Even the low target of $11.00 suggests a 12.7% upside, while the high target of $18.00 offers a potential 84.4% gain if the merger synergies materialize.
- Positive Free Cash Flow: Despite negative net income, HUN generated $116 million in trailing twelve-month free cash flow, providing a cushion for debt service and dividend payments. The price-to-cash-flow ratio of 5.97x is attractive, suggesting the market undervalues its cash generation.
- Dividend Yield Support: With a dividend yield of 8.46%, HUN offers a high income component that may attract value investors and provide some downside support. The company has maintained its dividend, signaling financial stability despite operational challenges.
Bearish
- Negative Earnings and Margins: HUN reported a net loss of $96 million in Q4 2025, with EPS of -$0.56, and a net margin of -4.8%. Gross margin has compressed to 13.2%, down from 15.2% a year earlier, reflecting weak pricing power and high input costs.
- Revenue Decline: Revenue fell 6.7% year-over-year in Q4 2025 to $1.355 billion, and the trend has been downward over the past four quarters. The Polyurethanes segment, which drives the majority of sales, is suffering from weak construction and industrial demand.
- Merger Dilution Concerns: The announced merger with Olin is perceived as unfavorable to HUN shareholders, with dilution concerns sending the stock down nearly 6% on the news. The deal's strategic fit is questionable, and integration risks could weigh on performance.
- High Valuation on Forward Earnings: The forward PE of 47.6x implies the market expects a sharp earnings recovery, but this optimism may be overly aggressive given the current margin environment. If earnings fail to rebound, the stock could face further de-rating.
HUN Technical Analysis
Huntsman's stock is in a pronounced downtrend, with the current price of $9.76 representing a 19.1% drop from the previous close and a 33.3% decline over the past three months. The stock is trading near the lower end of its 52-week range, at approximately 28% of the range (calculated as (9.76 - 7.30) / (16.09 - 7.30) = 0.28), indicating significant weakness and proximity to support levels. The 1-year price change is +0.6%, but this masks a sharp reversal from earlier highs, as the stock has given back most of its gains and is now below its 200-day moving average, reflecting a bearish long-term trend.
Beta
0.71
0.71x market volatility
Max Drawdown
-38.6%
Largest decline past year
52-Week Range
$7-$16
Price range past year
Annual Return
+0.6%
Cumulative gain past year
| Period | HUN Return | S&P 500 |
|---|---|---|
| 1m | -7.5% | +0.3% |
| 3m | -33.3% | +4.0% |
| 6m | -9.8% | +8.3% |
| 1y | +0.6% | +20.2% |
| ytd | -4.2% | +9.6% |
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HUN Fundamental Analysis
Huntsman's revenue has been declining, with the most recent quarter (Q4 2025) reporting $1.355 billion, a 6.7% year-over-year decrease. Over the past four quarters, revenue has trended downward from $1.46 billion in Q3 2025 to $1.355 billion in Q4, indicating a decelerating top line. The company's growth is being dragged by weak demand in its Polyurethanes segment, which is sensitive to construction and industrial activity, while the Advanced Materials segment shows some resilience but is too small to offset overall declines.
Quarterly Revenue
$1.4B
2025-12
Revenue YoY Growth
-6.7%
YoY Comparison
Gross Margin
12.1%
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 Huntsman's negative trailing net income (EPS of -$0.56 in Q4 2025), the price-to-sales (PS) ratio is the most appropriate valuation metric, as earnings-based multiples are not meaningful. The current PS ratio is 0.30x, which is significantly below the industry average of approximately 1.0x, indicating a deep discount. The forward PE of 47.6x suggests the market expects a sharp earnings recovery, but this optimism may be overly aggressive given the current margin environment.
PE
-6.3x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 3x~19x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant, as HUN's debt-to-equity ratio of 0.99x indicates a leveraged balance sheet, and the company has posted negative net income for five consecutive quarters, including a -$96 million loss in Q4 2025. The negative operating margin of -0.7% and gross margin of 13.2% highlight persistent margin pressure, while free cash flow of $116 million is thin relative to debt obligations. The current ratio of 1.30x provides some liquidity, but continued losses could erode this cushion. Additionally, the payout ratio of -53.1% indicates the dividend is not covered by earnings, raising sustainability concerns if losses persist.