We came across one bullish thesis to Huntsman Corporation in AK’s Unfair Advantage’s Substack. In this article, we will summarize the bulls’ thesis on HUN. Huntsman Corporation stock traded at $11.72 on January 26. HUN’s forward P/E was 153.85 according to Yahoo Finance.

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Huntsman Corporation is a diversified chemical manufacturer specializing in organic compounds, primarily polyurethanes and amines, serving a wide range of end markets and reducing reliance on any industry. Its margin profile has historically been more stable and higher than its peers, driven by the amines segment, which are specialty chemicals with approximately 20% of EBITDA, compared to core polyurethanes which generate around 10% of EBITDA. Huntsman is currently navigating a cyclical downturn, with chemical prices remaining depressed, but volumes have been steadily increasing over the past two to three quarters, indicating resilience in underlying demand.

The company has also been disciplined in returning capital to shareholders, reducing shares outstanding from 243 million in 2015 to 172 million today, reflecting consistent share buybacks. Competitive pressures remain a consideration, particularly from low-cost producers in China and India, which could challenge prices and market share. However, trends towards the localization of manufacturing could potentially boost domestic demand and support income growth if these macro changes materialize. While Huntsman faces both cyclical and structural challenges, its diversified portfolio, resilient specialty chemicals business and shareholder-friendly capital allocation provide a solid foundation.

The combination of improving volumes, stable specialty margins and potential headwinds from onshoring makes Huntsman a company worth monitoring, as it may present attractive opportunities for investors seeking exposure to both basic and specialty chemicals with a risk-adjusted growth profile. Overall, Huntsman represents a measured investment case, balancing short-term cyclical headwinds with long-term structural opportunities and strong financial discipline.

Previously, we covered a bullish thesis to Eastman Chemical Company (EMN) for Necessary-Damage5658 in November 2024, highlighting EMN’s advantage from export control changes and compliance-driven demand. EMN shares have depreciated 31.84% since then due to sector weakness and cyclical headwinds. AK shares a similar bullish view on Huntsman Corporation ( HUN ), but focuses on its diversified portfolio, specialty margins, and shareholder-friendly capital allocation.