Why Huntsman’s latest earnings matter for stockholders
Huntsman (HUN) shares are in focus after the company reported fourth quarter and full year 2025 results, which showed continued net and per share losses alongside lower sales, even as quarterly losses narrowed compared with the prior year.
See our latest analysis for Huntsman.
Huntsman’s latest earnings and dividend declaration have landed after a strong 90 day share price return of 30.65% and a 22.57% year to date share price gain. However, the 1 year total shareholder return of a 23.84% loss shows that longer term momentum has been weaker.
If this update has you thinking beyond Huntsman, it could be a good moment to broaden your search and check out 22 top founder-led companies as another way to source ideas.
With Huntsman still reporting full year losses and the share price now close to analyst targets after a 90 day surge, the question is whether this represents a genuine value gap or whether the market is already pricing in better days ahead.
Most Popular Narrative: 29.9% Overvalued
Huntsman’s most followed narrative sets a fair value of $9.62 using a 10.06% discount rate, compared with the latest close at $12.49, which puts that view under pressure after the recent rally.
Demand for Huntsman's advanced materials and polyurethane-based products is expected to benefit from accelerating global trends in sustainability, energy efficiency, and lightweighting, especially as infrastructure and construction activity resumes, and the EV/clean tech markets expand. This supports potential for higher long-term revenue growth and greater market share.
Curious how a company with current losses still earns a premium to its $9.62 fair value? Revenue, margins, and future earnings all carry bold assumptions. The gap between projected profitability and today’s cash flow profile is doing the heavy lifting. The full narrative lays out exactly which levers need to fire together to support that price.
Result: Fair Value of $9.62 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, risks around prolonged weak construction demand and sustained MDI overcapacity, especially from overseas competitors, could pressure margins and challenge the premium narrative around Huntsman.
Find out about the key risks to this Huntsman narrative.
Another View: Multiples Point To A Different Story
While the most popular narrative flags Huntsman as overvalued at a $9.62 fair value, its current P/S of 0.4x looks cheap next to both peers and the wider US Chemicals industry at 1.2x. It is even below a 0.8x fair ratio that our model suggests the market could move toward. That gap hints at valuation risk if sentiment turns, but also potential upside if earnings and confidence stabilise. Which side of that trade do you feel more comfortable with?
To see how this pricing stacks up against the rest of the sector and what the numbers imply for risk and potential opportunity, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment split between overvaluation worries and a low P/S story, it makes sense to move quickly and weigh the full picture for yourself. You can see how that balance looks in practice by checking the 2 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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