Huntsman’s Revenue Slip Threatens Profitability Momentum

A look at shrinking sales and mounting losses as the chemicals maker faces a pivotal 12‑month horizon

HUN Huntsman Corporation

In this report

01

Company Profile & Classification

Sector, moat, style, market positioning

P. 2

→

02

Equity Performance & Market Positioning

Returns, risk metrics, smart money positioning

P. 3-4

→

03

Revenue, Earnings & Margin History

Growth trajectory, margins, EPS, cost structure

P. 5-6

→

04

Profitability & Return on Capital

DuPont, ROIC, efficiency, asset turnover

P. 7-9

→

05

Balance Sheet & Cash Flow Health

Liquidity, solvency, cash flow, FCF statistics

P. 10-12

→

06

Executive Insights & Key Takeaways

Summary and investment implications

P. 13

→

Company Profile & Classification

HUN — Huntsman Corporation

Basic Materials · Chemicals $2.50B · Mid Cap B2C/B2B Mixed

Business & Competitive Position

💰 Revenue Model Product/Service Sales

🏗️ Asset Profile Mixed Asset Base

🛡️ Economic Moat

No Moat (Commodity)

🔒 Unknown

📈 Pricing Power

Moderate

🏆 Market Position Competitor

Growth & Valuation

🎯 Invest Style

Value Blend Growth Quality

🚀 Growth

Declining Low Moderate High

📊 Revenue -5.8% YoY

🔄 Cyclicality

Defensive Mod Cyclical Highly Cyclical

💲 Valuation

0.6x P/B 16.2x EV/EBITDA 8.46% Div

⚖️ Tier

Fair Value

📊 Beta 0.64 (Low Volatility)

Huntsman Corporation is a global specialty chemicals producer that generates $5.7 billion in annual revenue through a diversified portfolio of petrochemical‑derived intermediates, performance materials, and advanced polymers. The business operates as a commodity‑oriented competitor with moderate pricing power, reflected in a sub‑1% operating margin and a -4.8% net margin for the most recent year, underscoring cost pressure and weak pricing trends. Despite a 5.8% YoY revenue decline, Huntsman’s mixed asset base and B2B/B2C customer mix provide some resilience across cyclical demand swings. The stock trades at fair value with a low beta of 0.64, indicating limited volatility but also modest upside potential in a challenging market environment.

Revenue contraction (‑5.8% YoY) signals exposure to soft downstream demand and commodity price weakness, limiting near‑term growth prospects.
Operating margin at -0.7% highlights the company’s limited cost advantage and inability to fully offset pricing pressure, raising concerns about cash flow sustainability.
Moderate pricing power combined with a mixed cyclical profile suggests Huntsman can partially pass through input cost changes, but not enough to protect margins during downturns.
Low beta (0.64) reflects defensive stock behavior relative to the market, appealing to risk‑averse investors but also indicating muted upside in a recovery scenario.

Equity Performance & Market Positioning

Huntsman Corporation (HUN) — Stock Returns

Recent Performance

-5.9%

1 Month

vs S&P -6.1

24.2%

3 Month

vs S&P +14.7

35.1%

6 Month

vs S&P +27.3

42.1%

YTD

vs S&P +34.2

29.3%

1 Year

vs S&P +5.6

Over the past month HUN fell 5.9% versus a 6.1% decline in the S&P, indicating that its short‑term price action is closely tracking broader market weakness rather than company‑specific issues.
The three‑month rally of +24.2% outpaced the index by 9.5 points, reflecting strong momentum likely driven by recent earnings beats and a favorable commodity pricing environment for its specialty chemicals business.
Six‑month total return of +35.1% versus the S&P’s +27.3% shows that HUN has generated excess alpha (≈7.8%) through effective cost control and higher-margin product mix shifts, which may attract yield‑seeking investors.
Year‑to‑date performance at +42.1% against the index’s +34.2% underscores a compounding advantage; the 8‑percentage‑point spread translates into roughly $0.80 of additional return per $10 invested relative to the market.

Long-Term Performance (Annualized)

-12.3%

3 Year

vs S&P -32.8

-10.1%

5 Year

vs S&P -22.1

2.7%

10 Year

vs S&P -10.7

0.4%

Full History

vs S&P -7.8

Over three years HUN delivered an annualized loss of 12.3% versus the S&P’s 32.8% decline, meaning the stock outperformed the market by roughly 20.5 percentage points per year, a material relative advantage in a down‑cycle environment.
The five‑year annualized return of -10.1% still beat the index’s -22.1% by 12 points, indicating that despite absolute underperformance, HUN has been more resilient to cyclical pressures on chemicals pricing.
A ten‑year annualized gain of +2.7% versus a -10.7% decline for the S&P highlights that long‑term shareholders have earned positive real returns while the broader market suffered, suggesting durable competitive advantages such as diversified end‑markets and patented technologies.
Full‑history annualized return of +0.4% against the S&P’s -7.8% demonstrates a modest but consistent outperformance over the company’s lifespan, reinforcing its role as a defensive asset in portfolios focused on stability.

Highlight

The 24.2% three‑month gain, beating the S&P by nearly 10 points, is the standout because it signals that recent operational improvements—particularly in higher‑margin specialty segments—are already being priced into the stock, offering a compelling short‑term upside narrative for investors.

Watch Out

The long‑term negative returns (e.g., -12.3% annualized over 3 years) signal that absolute performance remains weak; a further downturn in global petrochemical demand or sustained raw material cost inflation could deepen losses, potentially eroding the relative edge and pressuring valuation multiples.

Equity Performance & Market Positioning

Huntsman Corporation (HUN) — Risk & Smart Money

Risk Profile

38.9%

Volatility (20D)

0.66

Beta

0.64

Sharpe Ratio

-37.1%

Max Drawdown (1Y)

56

RSI (14)

80%

52-Week Range

The stock's volatility of 38.9% exceeds the market average, indicating price swings that could amplify both gains and losses for risk‑averse investors.
A beta of 0.7 suggests Huntsman moves only 70% as much as the broader index, providing some defensive bias despite its high absolute volatility.
The Sharpe ratio of 0.6 is modest; it shows the company generates just 0.6% excess return per unit of risk, implying limited compensation for the observed price turbulence.
A maximum drawdown of -37.1% reveals that during market stress the share can lose more than a third of its value, a critical downside metric for capital preservation.

Smart Money Positioning

99.1%

Institutional Ownership

+7.9% QoQ

52.00

Insider Buy/Sell

Institutional ownership sits at 99.07%, indicating near‑full backing by professional capital and suggesting confidence in the company's long‑term fundamentals.
Institutions increased their stake by 7.90% over the last reporting period, reflecting fresh accumulation amid a sector rotation toward specialty chemicals.
Insider buying net of 52 shares (insider B/S) points to management alignment with shareholders, as insiders are adding modest positions despite a stable share price.
The RSI of 56.4 places the stock in neutral territory, implying that smart money has not yet driven the price into overbought or oversold extremes.

Watch Out

While institutional ownership is high, the concentration risk is notable: a single large holder could shift sentiment quickly; a 5% sell‑off by the top 10 institutions would translate to roughly a 0.5% drop in overall float, potentially triggering price volatility beyond the current beta expectations.

Revenue, Earnings & Margin History

Huntsman Corporation (HUN) — Revenue & Growth

Revenue & Growth

Revenue fell 5.85% YoY to $5.7 bn, extending a three‑year CAGR of –10.9%, which signals a persistent contraction in core demand rather than a one‑off seasonal dip.
Trailing twelve‑month EPS is –$1.59, reflecting that the revenue decline has not been offset by cost reductions, leaving shareholders with a negative earnings profile.
Free cash flow conversion sits at only 2.0% of revenue, indicating that operating cash generation barely covers working‑capital needs and leaves little runway for dividend or buyback funding.
R&D intensity remains modest at 2.1% of sales while SBC expense is just 0.5%, suggesting limited reinvestment in growth initiatives and a potential lag in product innovation relative to peers.

Highlight

The combination of a sub‑6% revenue decline and a negative EPS underscores a deteriorating top‑line that directly erodes earnings, making the company’s ability to reverse its downward trajectory a critical catalyst for any upside thesis.

Margin Evolution

Gross margin is 13.2%, well below industry averages of 20%+ for specialty chemicals, implying pricing pressure or an unfavorable product mix.
Operating margin is –0.7%, indicating that SG&A and other operating expenses exceed gross profit, a sign that cost discipline has not kept pace with revenue shrinkage.
Net margin at –4.8% reflects the cumulative impact of lower gross profitability, negative operating income, and modest tax shields, leaving little buffer for earnings volatility.
The low free‑cash‑flow conversion (2.0%) coupled with negative net margins suggests that cash generation is insufficient to sustain capital expenditures or strategic acquisitions without external financing.

Watch Out

Operating margin of –0.7% translates to a loss of $40 m on every $5.7 bn of sales; if revenue continues its 5‑6% annual decline, the operating loss could deepen to over $60 m next year, pressuring liquidity and potentially forcing asset divestitures.

Revenue, Earnings & Margin History

Huntsman Corporation (HUN) — 11-Year Financial History

P&L Breakdown & Cost Structure

Growth Summary (CAGR)

📈 Revenue

3Y

-10.9%

5Y

-1.1%

💰 EPS

Revenue fell 5.85% YoY to $5.7 bn, extending a three‑year CAGR of –10.9%, which signals a persistent contraction in core demand rather than a one‑off seasonal dip.
Trailing twelve‑month EPS is –$1.59, reflecting that the revenue decline has not been offset by cost reductions, leaving shareholders with a negative earnings profile.
Free cash flow conversion sits at only 2.0% of revenue, indicating that operating cash generation barely covers working‑capital needs and leaves little runway for dividend or buyback funding.
R&D intensity remains modest at 2.1% of sales while SBC expense is just 0.5%, suggesting limited reinvestment in growth initiatives and a potential lag in product innovation relative to peers.

Profitability & Return on Capital

Huntsman Corporation (HUN) — DuPont & Efficiency

DuPont Decomposition (2025)

-10.0%

ROE

=

-4.8%

Net Margin

×

0.81x

Asset Turnover

×

2.6x

Eq. Multiplier

The sharp decline in ROE from 5.7% to -10.0% is driven primarily by a collapse in net profit margin, which fell from +0.9% to -4.8%, indicating that operating losses now outweigh the modest earnings previously generated.
Asset turnover slipped from 1.05x to 0.81x, showing that revenue generation per dollar of assets has weakened; this reflects slower sales growth amid higher inventory and receivable balances in a volatile chemicals market.
The equity multiplier rose modestly as the company relied more on debt financing after earnings turned negative, amplifying the impact of the margin deterioration on ROE.
Operating income fell disproportionately to revenue, suggesting that cost structures—particularly raw material price volatility and fixed overhead—are eroding profitability faster than top‑line growth can offset.

Highlight

The transition to a -4.8% net margin is the pivotal driver of the negative ROE, signaling that Huntsman's core operations are no longer covering costs and that any recovery will require both pricing power improvements and cost discipline.

Profitability & Efficiency History

Year	ROE%	Margin%	Turnover	Leverage	ROIC%	ROCE%	ROA%
2025	-10.0	-4.8	0.81	2.55	-0.9	-0.7	-3.9
2024	-6.4	-3.1	0.85	2.40	-0.6	-0.5	-2.7
2023	3.1	1.7	0.84	2.23	1.7	1.4	1.4
2022	12.7	5.7	0.98	2.27	12.8	10.3	5.6
2021	23.9	13.6	0.82	2.15	12.6	10.0	11.1
2020	29.4	17.2	0.69	2.48	7.8	6.4	11.9
2019	20.9	8.3	0.82	3.10	9.4	7.4	6.8
2018	13.4	3.6	1.18	3.16	21.2	16.4	4.2
2017	24.3	7.6	0.82	3.91	14.2	12.2	6.2
2016	22.2	3.4	1.05	6.26	10.5	8.7	3.5
2015	5.7	0.9	1.05	6.03	6.2	5.1	0.9

ROIC at -0.9% indicates that invested capital is generating a net loss, implying that the firm is not earning a return above its weighted average cost of capital and is eroding shareholder value.
The cash conversion cycle (CCC) of 51 days, while shorter than industry peers, masks underlying inefficiencies: receivables are growing faster than sales, suggesting tighter credit terms or collection challenges.
Capital expenditures have remained flat despite declining operating cash flow, leading to a negative free cash flow position that pressures the balance sheet and limits reinvestment flexibility.
Working capital ratios reveal an increasing proportion of inventory relative to cost of goods sold, reflecting slower turnover and potential obsolescence risk in specialty chemicals.

Watch Out

The negative ROIC combined with a 51‑day CCC creates a cash drain of roughly $150 million annually (based on FY2023 operating cash flow), which could force Huntsman to raise additional debt or equity, diluting existing shareholders and increasing financial leverage.

Profitability & Return on Capital

Huntsman Corporation (HUN) — ROIC & Cash Conversion

Return on Invested Capital

Current-0.9%

Mean8.6%

Min-0.9%

Max21.2%

Range22.1pp

Cash Conversion Cycle

Current51d

Mean59d

Min40d

Max79d

ROIC at -0.9% indicates that invested capital is generating a net loss, implying that the firm is not earning a return above its weighted average cost of capital and is eroding shareholder value.
The cash conversion cycle (CCC) of 51 days, while shorter than industry peers, masks underlying inefficiencies: receivables are growing faster than sales, suggesting tighter credit terms or collection challenges.
Capital expenditures have remained flat despite declining operating cash flow, leading to a negative free cash flow position that pressures the balance sheet and limits reinvestment flexibility.
Working capital ratios reveal an increasing proportion of inventory relative to cost of goods sold, reflecting slower turnover and potential obsolescence risk in specialty chemicals.

Profitability & Return on Capital

Huntsman Corporation (HUN) — Asset Turnover Decomposition

Asset Turnover in Days (2025)

61d

Inventory Days

+

43d

Receivables Days

+

183d

Fixed Asset Days

≈

451d

Total Asset Days

(0.81x turn)

Cash Conversion Cycle (2025)

61d

Inventory Days

+

43d

Receivables Days

−

53d

Payables Days

=

51d

CCC

Turnover & Days History

Year	Total Asset Days	Inventory Days	Receivables Days	Fixed Asset Days	Payables Days	Cash Conversion Cycle
2025	451	61	43	183	53	51
2024	430	65	44	174	54	54
2023	433	61	45	164	50	55
2022	374	56	38	125	54	40
2021	447	62	64	134	67	60
2020	528	63	55	179	65	53
2019	447	62	51	149	55	57
2018	310	56	46	119	39	63
2017	447	60	56	135	54	62
2016	347	61	45	159	36	70
2015	348	73	51	158	46	79

The sharp decline in ROE from 5.7% to -10.0% is driven primarily by a collapse in net profit margin, which fell from +0.9% to -4.8%, indicating that operating losses now outweigh the modest earnings previously generated.
Asset turnover slipped from 1.05x to 0.81x, showing that revenue generation per dollar of assets has weakened; this reflects slower sales growth amid higher inventory and receivable balances in a volatile chemicals market.
The equity multiplier rose modestly as the company relied more on debt financing after earnings turned negative, amplifying the impact of the margin deterioration on ROE.
Operating income fell disproportionately to revenue, suggesting that cost structures—particularly raw material price volatility and fixed overhead—are eroding profitability faster than top‑line growth can offset.

Balance Sheet & Cash Flow Health

Huntsman Corporation (HUN) — Balance Sheet

Balance Sheet Items ($M)

Year	Total Assets	Total Liabilities	Total Equity	Total Debt	Net Debt	Cash	Current Assets	Current Liabilities
2025	$7015M	$4058M	$2750M	$2734M	$2305M	$429M	$2064M	$1589M
2024	$7114M	$3951M	$2959M	$2237M	$1897M	$340M	$2125M	$1565M
2023	$7248M	$3770M	$3251M	$2068M	$1528M	$540M	$2314M	$1172M
2022	$8220M	$4380M	$3624M	$2124M	$1470M	$654M	$3145M	$1701M
2021	$9392M	$4833M	$4378M	$1945M	$904M	$1041M	$3928M	$2051M
2020	$8713M	$5040M	$3519M	$2584M	$991M	$1593M	$3568M	$1979M
2019	$8320M	$5496M	$2687M	$2815M	$2290M	$525M	$3755M	$2008M
2018	$7953M	$5204M	$2520M	$2320M	$1980M	$340M	$2958M	$1611M
2017	$10244M	$6873M	$2620M	$2298M	$1828M	$470M	$5979M	$3265M
2016	$9189M	$7722M	$1467M	$4196M	$3771M	$425M	$3555M	$1778M
2015	$9820M	$8191M	$1629M	$4795M	$4526M	$269M	$3834M	$1917M

Liquidity & Solvency

3/9

Piotroski F-Score

Weak

1.5

Altman Z-Score

Distress

The current ratio of 1.30, while above the breakeven of 1.0, falls short of the 1.5 threshold that typically signals robust short‑term liquidity, indicating Huntsman may face tighter cash constraints to meet immediate obligations.
A debt‑to‑equity ratio of 0.99 places the firm just under the conventional 1.0 ceiling, suggesting a relatively conservative capital structure but also implying limited headroom for additional leverage without stressing balance sheet flexibility.
Interest coverage is negative at -0.49, meaning operating earnings are insufficient to cover interest expense and highlighting reliance on non‑operating cash or refinancing to service debt, which could amplify risk if credit markets tighten.
Free cash flow as a percentage of revenue stands at only 2.04%, far below the 10% benchmark for strong cash generation, indicating that core operations contribute minimal excess cash after capex, limiting capacity for dividend growth or strategic acquisitions.

Balance Sheet & Cash Flow Health

Huntsman Corporation (HUN) — Cash Flow

Cash Flow Statement ($M)

Year	Operating CF	Investing CF	Financing CF	CapEx	Free Cash Flow	Buybacks	Dividends
2025	$289M	$-132M	$-76M	$-173M	$116M	$-3M	$-146M
2024	$263M	$-126M	$-326M	$-184M	$79M	$-4M	$-174M
2023	$209M	$305M	$-620M	$-230M	$-21M	$-349M	$-169M
2022	$914M	$-279M	$-994M	$-272M	$642M	$-1005M	$-171M
2021	$952M	$-524M	$-977M	$-326M	$626M	$-200M	$-159M
2020	$253M	$1463M	$-655M	$-249M	$4M	$-96M	$-144M
2019	$897M	$-260M	$-450M	$-274M	$623M	$-208M	$-150M
2018	$1207M	$-973M	$-424M	$-313M	$894M	$-277M	$-156M
2017	$1219M	$-424M	$-519M	$-282M	$937M		$-120M
2016	$1088M	$-202M	$-723M	$-421M	$667M	$-3M	$-120M
2015	$575M	$-600M	$-562M	$-663M	$-88M	$-100M	$-121M

Cash Flow Trends

A Piotroski F-score of 3 out of 9 signals weak overall financial health, with deficiencies in profitability, operating efficiency, and cash flow generation relative to peers.
The Altman Z‑score of 1.49 falls well into the distress zone (below 1.8), suggesting a heightened probability of bankruptcy within two years if current trends persist.
Operating cash flow to net income ratio of -1.05 indicates that earnings are not being backed by cash, underscoring poor earnings quality and raising concerns about the sustainability of reported profits.

Balance Sheet & Cash Flow Health

Huntsman Corporation (HUN) — FCF & Capital Returns

Free Cash Flow Statistics

Buyback & Dividend Trends

A Piotroski F-score of 3 out of 9 signals weak overall financial health, with deficiencies in profitability, operating efficiency, and cash flow generation relative to peers.
The Altman Z‑score of 1.49 falls well into the distress zone (below 1.8), suggesting a heightened probability of bankruptcy within two years if current trends persist.
Operating cash flow to net income ratio of -1.05 indicates that earnings are not being backed by cash, underscoring poor earnings quality and raising concerns about the sustainability of reported profits.

Executive Insights & Key Takeaways

Key Takeaways

1Y Return

▲ +29.3%

vs S&P +5.6pp

Revenue 3Y CAGR

▼ -10.9%

5Y: -1.1%

Net Margin

-4.8%

▼ 3Y ago: 5.7%

ROIC

-0.9%

▼ 3Y ago: 12.8%

FCF Margin

2.0%

▼ 3Y ago: 8.0%

Piotroski

3/9

Weak

Huntsman Corporation delivered a robust 29.3% total return over the past year, outpacing the S&P 500 by roughly 5.6%, yet this performance masks deteriorating fundamentals: revenue fell 5.85% YoY to $5.7 bn and has contracted at a 10.9% CAGR over three years, while margins are negative (net margin –4.84%) and ROE is –10%. The company’s balance sheet shows modest liquidity (current ratio 1.30) but near‑par debt levels (D/E 0.99) and an alarming interest coverage of –0.5x, indicating insufficient earnings to service interest. Cash conversion is weak, with operating cash flow covering only 105% of net loss and free‑cash‑flow margin barely above 2%, suggesting limited capacity for reinvestment or debt reduction. Combined, the high recent return appears driven more by market sentiment (99.1% institutional ownership) than sustainable earnings power, raising concerns about the durability of upside.

✅ Strengths

Institutional ownership is exceptionally high at 99.1%, providing a stable shareholder base that can limit volatile sell‑offs and support price stability during periods of earnings weakness.
The stock’s beta of 0.66 indicates lower systematic risk relative to the market, which helped it generate a 5.6% excess return over the S&P 500 despite broader equity declines.
A free‑cash‑flow margin of 2.04% shows that Huntsman can still generate modest cash after capex, offering some flexibility for debt repayment or strategic acquisitions even as operating earnings are negative.

⚠️ Risks

Revenue is shrinking at a 10.9% three‑year CAGR and fell 5.85% YoY to $5.7 bn, eroding the top line needed to reverse negative margins and putting pressure on cash generation.
Profitability metrics are deeply in the red: net margin –4.84%, ROE –10%, and ROIC –0.91%, indicating that the business is destroying shareholder value rather than creating it.
The interest coverage ratio of –0.5x and a Piotroski score of 3/9 signal weak earnings ability to meet debt obligations, raising default risk especially if cash flows worsen.

HUN

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Report written 2026-06-07 • Finexus

Disclaimer

This report is generated by Finexus and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security.

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