Huntsman Corporation Receives 80% Rating from Validea

Huntsman Corporation (HUN) has achieved an 80% rating using Validea's Shareholder Yield Investor model, indicating solid potential for returning value to shareholders despite some weaknesses in quality and debt.

Date: 07-09-2024

AI Rating: 6

Huntsman Corporation (HUN) has been evaluated under Validea's Shareholder Yield Investor model, which assesses companies based on their ability to return cash to shareholders through dividends, buybacks, and debt reduction. The stock has received a rating of 80%, which is above the critical threshold of 70%, signaling decent interest based on its fundamentals and valuation.

The successes in the evaluation are reflected in the following aspects:

Universe: PASS
Net Payout Yield: PASS
Valuation: PASS
Relative Strength: PASS

However, there are concerns noted in two areas:

Quality and Debt: FAIL
Shareholder Yield: FAIL

The rating of 80% suggests interest from investors, although the failures in 'Quality and Debt' are significant. Such weaknesses could potentially pose risks to the company's long-term stability and growth prospects, which could, in turn, impact stock prices negatively.

The details about earnings per share (EPS), revenue growth, net income, profit margins (Gross, Operating, Net), free cash flow (FCF), or return on equity (ROE) are not mentioned in the text. This omission makes it difficult to assess these critical financial metrics which can affect how investors might view Huntsman's fiscal health.

In conclusion, while the 80% score reflects an upward sentiment regarding Huntsman Corporation's fundamentals and valuation orientation, the failures in quality and shareholder yield may temper investor enthusiasm, leading to cautious sentiment around stock pricing.

Stocks: HUN