Huntsman Corporation: The Global Chemical Company
Huntsman Corporation (HUN) established in the year 1970 is an American multinational manufacturer and marketer of chemical products used for consumers and industrial customers. Huntsman manufactures products which is used by some of the high-profile customers like BMW, Chevron, GE, P&G, and Unilever. Headquartered in Texas, Huntsman Corporation had close to $6 billion revenue in 2020.
HUN stock reached a lifetime high of 33 USD in Jan 2018 and gone down from that level to reach the level of 14.43 during the COVID pandemic in March 2020. From that point the stock has gone up significantly and reached levels of 27 in March 2021. The stock still can provide some decent up move from this point considering the long-term prospects and the fundamentals of the company. As a global chemicals company, Huntsman Corporation creates the building blocks for countless consumers and industrial products that are part of everyday life. Let’s have a look at the fundamental of the stock and the long-term prospects of the company.
Taking A Deeper Dive into the Numbers
The HUN stock is trading at a P/E multiple of 5.86 which is one of the lowest among its peers. Huntsman Corporation has a market cap of 6.04B and profit margin of 17.18%. The profit margin is great for any company operating in the Basic Material Industry. Return on asset of 1.85% is pretty low and hence any future expansion may not be viable for the company as the investment is usually pretty high in this segment.
Huntsman Corporation has a healthy cash position in the balance sheet with approximately 1.59B. Current ratio of 1.80 is decent and provides a bit of cushion in the unforeseen situation. However, the total debt of the company of 2.58B is pretty high but not uncommon for companies in this industry. The book value of the company is 15.99 which a key indicator of the strong fundamentals of the company. However, the lack of interest from the investor in companies in this industry might be a deterrent in the long run.
In summary, the stock is poised for a medium term up move as the economy is slowly moving back to normalcy. Also, the valuations of the company look attractive and a decent dividend yield can be a positive for investors looking for a medium-term investment.