Business Analysis of Huntsman

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Huntsman

HUNTSMAN

Business Overview

Huntsman Corporation, through its subsidiary, Huntsman International LLC, manufactures and sells differentiated organic and inorganic chemical products worldwide. The company operates in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, propylene oxide, polyols, propylene glycol, thermoplastic polyurethane, aniline, and methyl tertiary-butyl ether products. The Performance Products segment provides amines, carbonates, surfactants, linear alkyl benzene, maleic anhydride, other performance chemicals, ethylene glycol, olefins, and technology licenses. The Advanced Materials segment offers basic liquid and solid epoxy resins; specialty resin compounds; cross-linking, matting, and curing agents; and epoxy, acrylic, and polyurethane-based formulations. The Textile Effects segment provides textile chemicals, dyes, and inks. The Pigments and Additives segment offers titanium dioxide, functional additives, color pigments, timber treatment, and water treatment chemicals. The company's products are used in various applications, including adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

Huntsman

Huntsman


R&P Rank: 300
Sector: Basic Materials
Industry:Chemicals
H.Q Location:Texas
Website: www.huntsman.com
Company Address:
10003 WOODLOCH FOREST DRIVE, THE WOODLANDS TX 77380
Ph:281-719-6000

Business Analysis of Huntsman

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Huntsman compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Huntsman to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Huntsman with an interactive chart.

  1. Revenue Growth: Huntsman reported a revenue growth of -6.2% year-on-year during 2016. Chemicals Industry grew at -4.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Huntsman spent 82.6% of its total revenues on COGS. Chemicals industry average (COGS share of revenue) in the same period was 70.2%
  3. R&D share of Revenues: As a percentage of revenue, Huntsman spent 1.6% of its total revenues on R&D. Chemicals industry average R&D spending in the same period was 2.5%
  4. SG&A share of Revenues: As a percentage of revenue, Huntsman spent 9.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Chemicals industry average SG&A spending in the same period was 13.0%
  5. Inventory share of Revenues: As a percentage of revenue, Huntsman spent 13.9% of its total revenues on Inventories. Chemicals industry average Inventory spending in the same period was 14.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Huntsman invested 11.4% of its total revenues on Accounts Payable (A/P) Chemicals industry average Accounts Payable investment in the same period was 12.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Huntsman invested 14.9% of its total revenues on Accounts Receivable (A/R). Chemicals industry average Accounts Receivable investment in the same period was 16.8%
  8. PP&E share of Revenues: As a percentage of revenue, Huntsman invested 43.6% of its total revenues on Property, Plants, and Equipments (PP&E). Chemicals industry average PPE investment in the same period was 52.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Huntsman invested 1.9% of its total revenues on Intangibles. Chemicals industry average Intangibles investment in the same period was 31.4%
  10. Net Margins: Huntsman Net Margins in the year 2016 were 3.4%. Chemicals industry average Net Margins in the same period were 8.1%

Sector and Industry Association of Huntsman

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Huntsman is associated with Basic Materials Sector and Chemicals Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Huntsman

With $9.7 billion revenues, Huntsman ranked number 8 of all the companies in the US Chemicals industry. There were a total of 66 public companies in the US Chemicals industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Chemicals industry by revenues during 2016 were:

  1. Dow Chemical ($48.2 billion)
  2. Lyondellbasell Industries ($29.2 billion)
  3. DuPont ($24.6 billion)
  4. PPG Industries ($14.8 billion)
  5. Monsanto ($13.5 billion)
  6. Sherwin Williams ($11.9 billion)
  7. Praxair ($10.5 billion)
  8. Huntsman ($9.7 billion)
  9. Air Products ($9.5 billion)
  10. Eastman ($9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Huntsmanand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of huntsman

Monsanto (MON) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Monsanto Co with $14 billion revenues in the year 2016 was the number 5 Chemicals company. Read this report to know the top competitors of Monsanto and identify growth and cost optimization opportunities of Monsanto

Sherwin Williams (SHW) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sherwin Williams Co with $12 billion revenues in the year 2016 was the number 6 Chemicals company. Read this report to know the top competitors of Sherwin Williams and identify growth and cost optimization opportunities of Sherwin Williams

Praxair (PX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Praxair Inc with $11 billion revenues in the year 2016 was the number 7 Chemicals company. Read this report to know the top competitors of Praxair and identify growth and cost optimization opportunities of Praxair

Air Products (APD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Air Products & Chemicals Inc with $10 billion revenues in the year 2016 was the number 9 Chemicals company. Read this report to know the top competitors of Air Products and identify growth and cost optimization opportunities of Air Products

Eastman (EMN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Eastman Chemical Co with $9 billion revenues in the year 2016 was the number 10 Chemicals company. Read this report to know the top competitors of Eastman and identify growth and cost optimization opportunities of Eastman

Univar (UNVR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Univar Inc. with $8 billion revenues in the year 2016 was the number 11 Chemicals company. Read this report to know the top competitors of Univar and identify growth and cost optimization opportunities of Univar

Revenues Analysis

Huntsman (HUN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Huntsman Corp (HUN) from 2012 to 2016. Huntsman generated a total of $9.7 billion revenues during 2016. Huntsman reported a revenue growth of -6.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Huntsman (HUN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Huntsman Corp (HUN) from 2002 to 2016. Huntsman generated a total of $9.7 billion revenues during 2016. Huntsman reported a revenue growth of -6.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Huntsman (HUN) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Huntsman Corp (HUN) revenue growth with Chemicals industry growth during the last five years from 2012 to 2016. Huntsman reported a revenue growth of -6.2% year-over-year during 2016. The Chemicals industry growth was -4.1% year-over-year during 2016. Huntsman growth was slower than the industry during 2016.

Profit Analysis

Huntsman (HUN) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Huntsman Corp (HUN) from 2012 to 2016. Huntsman reported a total net income of $326 million during 2016. Huntsman generated a total of $9.7 billion revenues during 2016. Huntsman net profit margin was 3.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Huntsman (HUN) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of Huntsman Corp (HUN) from 2002 to 2016. Huntsman reported a total net income of $326 million during 2016. Huntsman generated a total of $9.7 billion revenues during 2016. Huntsman net profit margin was 3.4% during 2016. The net profit and the net profit margin co