Huntsman earnings and dividend move draw fresh attention

Huntsman (HUN) is in focus after reporting second quarter 2026 results alongside a new dividend declaration. The company reported higher sales with a smaller net loss and confirmed a cash payout to shareholders.

Huntsman shares last closed at US$12.07, with a 30 day share price return of 13.65% but a 90 day share price decline of 17.50%. The 1 year total shareholder return of 30.02% contrasts with a 3 year total shareholder return decline of 51.33% and a 5 year total shareholder return decline of 41.54%. This suggests recent momentum has picked up after a weak multi year run as investors weigh improving earnings and the continued dividend against past losses.

If Huntsman’s mix of earnings progress and dividends has your attention, this can be a good moment to broaden your search and check out 19 top founder-led companies

Huntsman is showing progress in its operations and still paying a dividend, yet the stock’s multiyear value destruction is hard to ignore. Is this a solid chemicals business that the market is still mispricing today?

Most Popular Narrative: 15.3% Undervalued

The most followed narrative on Huntsman pegs fair value at $14.25 per share, compared with the latest close at $12.07. That gap rests on a detailed view of future revenue, margins and capital structure.

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 and clean tech markets expand. This supports potential for higher long-term revenue growth and greater market share.

Want to see what has to happen for that fair value to hold up? The narrative leans on steady revenue growth, a margin reset and a compressed future earnings multiple. It focuses on how those three levers might align across the next cycle and into the merger timeline.

Result: Fair Value of $14.25 (UNDERVALUED)

However, Huntsman’s story could change quickly if global polyurethane overcapacity keeps pricing weak or if European energy and raw material costs remain elevated for longer.

Another View on Huntsman’s valuation

The consensus narrative frames Huntsman as about 15.3% undervalued with a fair value of $14.25. Our DCF model tells a different story. On that view, Huntsman at $12.07 is trading above an estimated future cash flow value of $9.63, which points to downside risk instead.

Both approaches rest on long term assumptions about cash generation and capital allocation. The real question for you is which set of assumptions feels closer to how Huntsman will actually run its balance sheet and portfolio over the next cycle.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Huntsman for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 57 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Given the mixed signals around Huntsman, it helps to see the full picture for yourself and not rely only on headlines. To get a clearer view of the balance between upside potential and downside risk, review the 1 key reward and 3 important warning signs

Looking for more investment ideas beyond Huntsman?

If Huntsman has sharpened your focus on risk and reward, do not stop here. The next smart move is widening your watchlist with fresh, high quality ideas.

• Capture potential upside with companies that combine strong fundamentals and attractive pricing by reviewing the 57 high quality undervalued stocks.
• Target reliable income opportunities by scanning the 8 dividend fortresses that currently stand out for their payouts.
• Prioritise capital protection with the 89 resilient stocks with low risk scores so you are not caught off guard when conditions shift.

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.