Huntsman Corporation Predicts Difficult Year Ahead, Despite High Valuation

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Huntsman Corporation ($NYSE:HUN) is a multinational chemical manufacturing company headquartered in The Woodlands, Texas. They specialize in producing a variety of chemicals, including surfactants, additives, and synthetic products. Despite their high valuation, Huntsman Corporation is predicting a difficult year ahead in FY 2023. Analysts have attributed Huntsman’s high valuation to their strong presence in the chemical industry and their ability to produce specialty chemicals.

However, despite these accolades, the company is expecting a challenging year as they forecast negative growth in some markets and uncertain prospects in others.

In addition, volatile market conditions may create additional headwinds for the organization. The company has taken steps to mitigate the risks associated with a difficult year ahead. They have implemented cost-cutting measures and streamlined their operations in order to better manage their finances. They have also shifted their focus to higher-margin markets in order to capitalize on these opportunities and offset potential losses. Despite the difficulties they are likely to face in FY 2023, Huntsman Corporation remains optimistic about their long-term prospects. Their expansive portfolio of products and services, as well as their strong customer base, position the organization for success over the coming years. With the right strategies in place, Huntsman Corporation will be able to weather any storms that may come their way.

Stock Price

On Thursday, HUNTSMAN CORPORATION stock opened at $25.1 and closed at $25.5, up by 1.0% from last closing price of 25.3. Despite the increase in its stock price, the company has predicted a difficult year ahead due to a range of factors. Chief among them is the geopolitical climate, which has caused the company’s competitors to suffer from slowdowns in production and demand.

In addition, the company is facing a number of economic and industry-specific challenges, including rising costs and decreased sales. Furthermore, its high valuation makes it difficult for the company to compete with other players in the market. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Huntsman Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Huntsman Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Huntsman Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Huntsman Corporation are shown below. More…

Analysis

As GoodWhale, we have conducted a financial analysis of HUNTSMAN CORPORATION. The results of our analysis reveal that HUNTSMAN CORPORATION has a high health score of 9/10 considering its cashflows and debt, meaning that it should be able to safely ride out any economic crisis without the risk of bankruptcy. Additionally, the Star Chart for HUNTSMAN CORPORATION shows that it is strong in dividend, medium in asset, profitability and weak in growth. Based on this analysis, we have classified HUNTSMAN CORPORATION as a ‘cow’, meaning that it has a solid track record of paying out consistent and sustainable dividends. Given the stability of the company and its impressive dividend payments, we believe that dividend investors may be particularly interested in this type of company. Furthermore, value investors may also be interested as the company appears to be undervalued based on its current market price. More…

Peers

They operate in four segments: Polyurethanes, Performance Products, Advanced Materials and Textile Effects. Huntsman Corp’s competitors include Univar Solutions Inc, Solvay SA, Braskem SA.

– Univar Solutions Inc ($NYSE:UNVR)

Univar Solutions Inc is a chemical and ingredient distributor with a market cap of 4.58B as of 2022. The company has a return on equity of 23.02%. Univar Solutions Inc distributes chemicals and ingredients to customers in a variety of industries including oil & gas, food & beverage, pharmaceuticals, personal care, and more. The company has a network of over 200 distribution facilities in North America, Europe, Asia Pacific, and Latin America.

– Solvay SA ($OTCPK:SLVYY)

Solvay SA is a Belgian chemical company with a market cap of 9.61B as of 2022. The company has a Return on Equity of 13.2%. Solvay SA produces a wide range of chemicals, plastics, and performance materials. The company’s products are used in a variety of industries, including automotive, aerospace, electronics, construction, and healthcare. Solvay SA has a strong market position and is well-positioned to continue growing its business.

– Braskem SA ($NYSE:BAK)

Braskem SA is one of the world’s largest petrochemical companies, with a market capitalization of over $5 billion. The company produces a wide range of chemicals and plastics, and has a strong presence in Brazil and other Latin American countries. Braskem’s return on equity is an impressive 65.49%, indicating that the company is generate significant profits for its shareholders. The company is well-positioned to continue its growth in the coming years.

Summary

Huntsman Corporation is a leading global manufacturer and marketer of chemical products across a wide range of industries. Analysts are expecting a tough year for Huntsman in FY 2023, due to its high valuation relative to the average in its industry. Consequently, investors should keep an eye on the stock as its high valuation could turn out to be an overvaluation if the company does not deliver the expected performance.

A careful and thorough analysis of Huntsman Corporation and its competitors should be conducted before investing in the company. It is also important to remember that investing in any stock involves risk and investors should be aware of that before making any decisions.