Huntsman Corporation (HUN): A Bull Case Theory

We came across a bullish thesis connected Huntsman Corporation connected Unfair Advantage’s Substack by AK. In this article, we volition summarize the bulls’ thesis on HUN. Huntsman Corporation's share was trading astatine $11.72 as of January 26th. HUN’s forward P/E was 153.85 according to Yahoo Finance.

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Huntsman Corporation is simply a diversified chemic shaper specializing successful integrated compounds, chiefly polyurethanes and amines, serving a wide scope of extremity markets and reducing reliance connected immoderate azygous sector. Its borderline illustration has historically been much unchangeable and higher than peers, driven by the amines segment, which are specialty chemicals with astir 20% EBITDA, compared to basal polyurethanes that make astir 10% EBITDA. Currently, Huntsman is navigating a cyclical downturn, with chemic prices remaining depressed, but volumes person been rising steadily implicit the past 2 to 3 quarters, indicating underlying request resilience.

The institution has besides been disciplined successful returning superior to shareholders, reducing shares outstanding from 243 cardinal successful 2015 to 172 cardinal today, reflecting accordant banal buybacks. Competitive pressures remain a consideration, peculiarly from lower-cost producers successful China and India, which could situation pricing and marketplace share. However, trends toward manufacturing onshoring could perchance summation home request and enactment gross maturation if these macro shifts materialize. While Huntsman faces some cyclical and structural challenges, its diversified portfolio, resilient specialty chemicals business, and shareholder-friendly superior allocation supply a coagulated foundation.

The operation of improving volumes, unchangeable specialty margins, and imaginable tailwinds from onshoring makes Huntsman a institution worth monitoring, arsenic it whitethorn contiguous charismatic opportunities for investors seeking vulnerability to specialty and basal chemicals with a risk-adjusted maturation profile. Overall, Huntsman represents a measured concern case, balancing near-term cyclical headwinds with longer-term structural opportunities and beardown fiscal discipline.

Previously, we covered a bullish thesis on Eastman Chemical Company (EMN) by Necessary-Damage5658 successful November 2024, highlighting EMN’s borderline from export power changes and compliance-driven demand. EMN’s banal has depreciated by 31.84% since past owed to assemblage weakness and cyclical headwinds. AK shares a akin bullish presumption connected Huntsman Corporation (HUN) but focuses connected its diversified portfolio, specialty margins, and shareholder-friendly superior allocation.