Huntsman Corp (HUN)
NYSEMaterialsChemicalsSnapshot 2026-09-04
$9.62+2.34%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicalsSnapshot 2026-09-04
Broken: Primary pillar broken — Enhance cash flow from operations: TTM operating cash flow -53.0M vs target positive.
Huntsman aims to improve profits through global pricing. It targets better cash flow to stabilize finances. The company recently sold a unit for $50M, boosting cash. Analysts expect about 7% revenue growth next year.
Huntsman is loss-making with negative cash flow. The recent merger talks and litigation add uncertainty. Revenue growth and profitability may not improve as hoped.
The stock trades about 32% below our fair value near $16. Analysts expect 6.7% revenue growth, which the price roughly reflects. Our fair value is 13% above the Street median, indicating some upside if turnaround succeeds.
Breaks if: capex exceeds $180 million in FY25
Breaks if: cash from operations remains negative over next 4 quarters
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with elements of a cyclical business. The current thesis state is cautious, as Huntsman has been experiencing losses and recent earnings misses, making it a name to watch closely.
The market appears to have priced in a cheap valuation relative to peers, with a significant expectations gap indicating that investors may not be anticipating strong performance. The current pricing reflects a justified stance despite the company's recent struggles.
Management is focused on key priorities such as completing a merger and improving profitability through pricing initiatives. However, the company has a high probability of missing earnings expectations, which adds to the uncertainty in the near term.
The long-term thesis hinges on several factors, including the outcome of the merger with Olin Corporation and the ability to increase profitability amid rising costs. Additionally, broader sector trends and inflation rates will play a crucial role in shaping Huntsman's performance.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings miss has negatively impacted the outlook. Recent financial performance remains below its industry peers, which is concerning.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on improving cash flow generation from operating activities despite market challenges.
Stated in 2 of last 2 quarters. Despite management focus on cost reduction and pricing to improve cash flow, net cash used in operating activities was -$53M in 2026-Q1 and -$60M in 2026-Q2, with free cash flow negative $91M in both quarters. The trajectory shows limited progress in cash flow enhancement so far.
“We will stay focused on additional price increases and cost-reduction initiatives to help offset these pressures.”
“We are concentrating on margin improvement, cost reduction and cash flow generation.”
Breaks if: operating margin remains negative or deteriorates over next 4 quarters
Drive margin expansion and profitability improvement via worldwide pricing initiatives and volume growth.
Stated in 2 of last 2 quarters (2026-Q1 and 2026-Q2). Revenue increased from $1.42B to $1.66B and adjusted EBITDA rose from $73M to $120M, reflecting volume growth and pricing initiatives. Management's focus on pricing to offset raw material cost increases is delivering improved profitability.
“Pricing actions offset a significant increase in raw material costs; margin expansion expected from worldwide pricing initiatives.”
“We immediately increased prices across all products and regions to ensure margins were protected.”
Breaks if: YoY revenue growth falls below 6.7% in FY27
In the next 1 to 3 years, Huntsman faces significant challenges but also opportunities if management can execute effectively. Not investment advice.