NEW YORK ( TheStreet) -- Huntsman Corporation (NYSE: HUN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • HUN's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HUNTSMAN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HUNTSMAN CORP turned its bottom line around by earning $1.00 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.00).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 250.0% when compared to the same quarter one year prior, rising from $30.00 million to $105.00 million.
  • Net operating cash flow has increased to $340.00 million or 16.43% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.00%.
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Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. Its products comprise a range of chemicals and formulations, which are marketed to consumer and industrial customers. The company has a P/E ratio of 17.1, above the average chemicals industry P/E ratio of 16.9 and below the S&P 500 P/E ratio of 17.7. Huntsman has a market cap of $2.85 billion and is part of the basic materials sector and chemicals industry. Shares are up 39.9% year to date as of the close of trading on Friday.

You can view the full Huntsman Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

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