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Huntsman (HUN) to Review Strategic Options & Compensation Plan
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Huntsman Corporation (HUN - Free Report) announced a review of strategic options for its Textile Effects Division and a multi-year compensation plan.
The strategic review of the Textile Effects Division, headquartered in Singapore, includes a possible sale of the division and is in line with its goals to boost shareholders’ value. The review will commence early in the first quarter of the next year. The division is expected to generate around $100 million of Adjusted EBITDA in 2021.
Huntsman has not set a timetable or deadline to close its evaluation of strategic alternatives for the division but intends to complete it soon.
Huntsman’s board has authorized management to execute a multi-year compensation plan for all officers and vice presidents. A majority of the plan participants' equity incentives will be performance-based and attached to relative total shareholder return and free cash flow measures.
Moreover, its entire incentive cash bonus program will be tied to the achievement of the adjusted EBITDA margin, optimization program and free cash flow targets set out at the Investor Day. Each of these targets builds on a multi-year effort to enhance its 2021 performance.
Shares of Huntsman have increased 32.8% in the past year compared with a 14% rise of the industry.
Image Source: Zacks Investment Research
The company, in its last earnings call, stated that it is seeing strong pent-up demand across its businesses amid supply chain disruptions. Its strong balance sheet along with cash generation allows it to continue returning capital to shareholders. It is investing in high-return organic projects that will boost its total returns and improve margins over the next 24-36 months.
Zacks Rank & Key Picks
Huntsman currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Nutrien Ltd. (NTR - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has rallied 62.3% in a year. NTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 104% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. It has rallied 30.8% in a year. CC currently flaunts a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 130% in a year. It currently carries a Zacks Rank #2 (Buy).
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Huntsman (HUN) to Review Strategic Options & Compensation Plan
Huntsman Corporation (HUN - Free Report) announced a review of strategic options for its Textile Effects Division and a multi-year compensation plan.
The strategic review of the Textile Effects Division, headquartered in Singapore, includes a possible sale of the division and is in line with its goals to boost shareholders’ value. The review will commence early in the first quarter of the next year. The division is expected to generate around $100 million of Adjusted EBITDA in 2021.
Huntsman has not set a timetable or deadline to close its evaluation of strategic alternatives for the division but intends to complete it soon.
Huntsman’s board has authorized management to execute a multi-year compensation plan for all officers and vice presidents. A majority of the plan participants' equity incentives will be performance-based and attached to relative total shareholder return and free cash flow measures.
Moreover, its entire incentive cash bonus program will be tied to the achievement of the adjusted EBITDA margin, optimization program and free cash flow targets set out at the Investor Day. Each of these targets builds on a multi-year effort to enhance its 2021 performance.
Shares of Huntsman have increased 32.8% in the past year compared with a 14% rise of the industry.
The company, in its last earnings call, stated that it is seeing strong pent-up demand across its businesses amid supply chain disruptions. Its strong balance sheet along with cash generation allows it to continue returning capital to shareholders. It is investing in high-return organic projects that will boost its total returns and improve margins over the next 24-36 months.
Zacks Rank & Key Picks
Huntsman currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Nutrien Ltd. (NTR - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has rallied 62.3% in a year. NTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 104% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. It has rallied 30.8% in a year. CC currently flaunts a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 130% in a year. It currently carries a Zacks Rank #2 (Buy).