HUN

Huntsman is a polyurethanes/MDI-heavy commodity chemical producer mired in a multi-year downcycle, and the numbers say so plainly: revenue has fallen every year from $8.02B (FY2022) to $5.68B (FY2025), and the bottom line has gone from +$1.04B (FY2021) to a -$284M loss, with the loss widening 50% YoY. Operating income swung to -$131M and gross margin is a thin 13.2%, so this is not a temporary blip — demand and pricing across the portfolio are genuinely soft, as the MD&A confirms via lower Q4 revenue, an $85M working-capital drawdown, and inventory destocking ($818M, -11%). ROE is -10.3%. On fundamentals alone the trend is clearly negative.

What keeps this from a sell is the price and the cash. At $10.95 the market cap is $1.91B against $2.75B of book equity (~0.7x) and 0.3x sales — the stock already discounts a lot of pain. Crucially, the business still generated $289M of operating cash flow (up 10%) and ~$116M of free cash after $173M capex, cash rose 26% to $429M, and management bought itself time by replacing the revolver with a new $800M secured facility maturing 2031, leaving ~$1.32B of combined cash and availability. Leverage (liabilities/equity 1.48x, total debt ~$2.0B) is elevated but not yet a solvency question.