I am neutral on Huntsman Corporation (HUN). My primary concern is the sharp decline in revenue, particularly in the polyurethane segment. Also, the operating income margin is declining and its financial leverage is expanding. On a positive note, the dividend is sustainable and the company seems to be relatively undervalued.
My concerns on the company and a few potential tailwinds
The first concerning aspect from HUN is that revenue declined in Q2 2019 on a year-over-year basis. Net income also fell from $623 million to $118 million. Adjusted net income compressed by 40%