- It is nice to see that the sequential improvement trend did not lose steam in 4Q20: net sales rose by ~10.5% vs. 3Q20.
- HUN's net CFFO and FCF were weak, but massive inorganic inflows related to divestments secured liquidity and shareholder rewards.
- HUN has net leverage of just 0.8x, coupled with impressive total liquidity of almost $3 billion (including ~$1.6 billion in cash & cash equivalents on the balance sheet).
- Wall Street is expecting a 16.7% revenue growth in 2021, bolstered by the global economic recovery. In this scenario, the company's dividend looks relatively protected.
- In sum, the dividend thesis remains intact. However, after HUN has delivered an over 41% price gain since my first note, I remain neutral on the stock.
For further details see:
Huntsman: Dividend Thesis Remains Intact