HUN
Huntsman Corporation
Industrial/Transportation
07/16/2013
Presented
| Date | 07/10/2013 |
| Price | $17.14 |
| Market Cap | $4.13B |
| Ent Value | $7.82B |
| P/E Ratio | 16.88x |
| Book Value | $7.30 |
| Div Yield | 2.2% |
| Shares O/S | 0.00M |
| Ave Daily Vol | 3,290,000 |
| Short Int | 1.15% |
Current
| Price | $23.37 |
| Market Cap | $4.04B |
| Huntsman Corporation and its subsidiaries engage in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. The company operates in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, propylene oxide, polyols, propylene glycol, thermoplastic polyurethane, aniline, and methyl tertiary-butyl ether products, which are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants, and elastomers. The Performance Products segment provides amines, carbonates, surfactants, linear alkyl benzene, maleic anhydride, performance chemicals, ethylene glycol, olefins, and technology licenses. The Advanced Materials segment offers epoxy resin compounds and formulations; cross-linking, matting agents, and curing agents; and epoxy, acrylic and polyurethane-based adhesives, and tooling resin formulations. The Textile Effects segment provides textile chemicals and dyes. The Pigments segment offers titanium dioxide. The company’s products are used in various applications, such as adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is based in Salt Lake City, Utah. |
Highlights
The presenter is long shares of HUN, and said it “is the single best investment in our portfolio at this time.” He believes the shares have 50%+ upside potential from current levels. HUN is currently trading at ~5x consensus 2014 EBITDA, which is depressed due to the market’s perception it is still a TiO2 play. However, over the next three-to-six months, the presenter believes HUN will shed its TiO2 assets (for as much as $1-$1.2 billion, or ~6x normalized EBITDA, he estimates), and the impact of falling butane prices will ripple through the income statement and help highlight the company’s potential earnings power.
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