Is HUN a good stock to buy?
We came across a bullish thesis on Huntsman Corporation on Hidden Rock Capital’s Newsletter’s Substack by Hidden Rock Capital
In this article, we will summarize the bulls’ thesis on HUN. Huntsman Corporation’s share was trading at $14.23 as of June 8th. HUN’s forward P/E was 1.00k according to Yahoo Finance.
Syda Productions/ Huntsman Corporation (HUN) is a specialty chemicals producer operating across three core segments, including Polyurethanes used in insulation, foam, sealants, and construction applications, Performance Products serving industrial, automotive, and electronics end markets, and Advanced Materials focused on high-performance adhesives, composites, and coatings. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential The company has faced a prolonged cyclical downturn, with its stock declining more than 50% over the past five years as weak end-market demand, post-COVID inventory destocking, and significant new capacity additions from China and the Middle East have weighed on pricing and margins across the chemicals industry. Despite these headwinds, Huntsman’s underlying business model remains structurally intact, with its diversified exposure across industrial value chains and historically resilient cash generation through the cycle. The investment case centers on the extreme cyclicality of earnings, where Huntsman’s adjusted EBITDA has fluctuated sharply across multiple business cycles, including strong boom periods in 2016–2018 and 2021–2022, and weaker downturns in 2019–2020 and the ongoing post-2023 trough.