SASOL LTD-SPONSORED ADR (SSL) Stock Fundamental Analysis
NYSE:SSL - New York Stock Exchange, Inc. - US8038663006 - ADR - Currency: USD
SSL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. There are concerns on the financial health of SSL while its profitability can be described as average. SSL is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SSL was profitable.
In the past year SSL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SSL reported negative net income in multiple years.
SSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -13.40%, SSL is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
With a Return On Equity value of -33.26%, SSL is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
SSL has a Return On Invested Capital of 8.78%. This is in the better half of the industry: SSL outperforms 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.4% | ||
| ROE | -33.26% | ||
| ROIC | 8.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Operating Margin value of 15.82%, SSL belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
SSL's Operating Margin has improved in the last couple of years.
The Gross Margin of SSL (50.05%) is better than 94.12% of its industry peers.
SSL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.82% | ||
| PM (TTM) | N/A | ||
| GM | 50.05% |
OM growth 3Y1.72%
OM growth 5Y2.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.77%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SSL is destroying value.
There is no outstanding debt for SSL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that SSL is in the distress zone and has some risk of bankruptcy.
SSL has a Altman-Z score (1.72) which is in line with its industry peers.
SSL has a debt to FCF ratio of 11.43. This is a negative value and a sign of low solvency as SSL would need 11.43 years to pay back of all of its debts.
SSL's Debt to FCF ratio of 11.43 is in line compared to the rest of the industry. SSL outperforms 57.65% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that SSL is somewhat dependend on debt financing.
SSL has a Debt to Equity ratio of 0.79. This is comparable to the rest of the industry: SSL outperforms 42.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.43 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.56
WACC15.64%
2.3 Liquidity
SSL has a Current Ratio of 1.83. This is a normal value and indicates that SSL is financially healthy and should not expect problems in meeting its short term obligations.
SSL has a Current ratio of 1.83. This is comparable to the rest of the industry: SSL outperforms 44.71% of its industry peers.
SSL has a Quick Ratio of 1.16. This is a normal value and indicates that SSL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.16, SSL perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for SSL have decreased strongly by -68.13% in the last year.
SSL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.34% yearly.
SSL shows a decrease in Revenue. In the last year, the revenue decreased by -4.85%.
Measured over the past years, SSL shows a small growth in Revenue. The Revenue has been growing by 6.21% on average per year.
EPS 1Y (TTM)-68.13%
EPS 3Y-24.6%
EPS 5Y-11.34%
EPS Q2Q%-23.59%
Revenue 1Y (TTM)-4.85%
Revenue growth 3Y10.86%
Revenue growth 5Y6.21%
Sales Q2Q%-10.41%
3.2 Future
The Earnings Per Share is expected to grow by 39.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, SSL will show a small growth in Revenue. The Revenue will grow by 1.39% on average per year.
EPS Next Y80.59%
EPS Next 2Y46.14%
EPS Next 3Y39.52%
EPS Next 5YN/A
Revenue Next Year-8.2%
Revenue Next 2Y-1.45%
Revenue Next 3Y1.39%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.29, the valuation of SSL can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SSL indicates a rather cheap valuation: SSL is cheaper than 95.29% of the companies listed in the same industry.
SSL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
SSL is valuated cheaply with a Price/Forward Earnings ratio of 1.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SSL indicates a rather cheap valuation: SSL is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.85. SSL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.29 | ||
| Fwd PE | 1.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SSL indicates a rather cheap valuation: SSL is cheaper than 94.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SSL's earnings are expected to grow with 39.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y46.14%
EPS Next 3Y39.52%
5. Dividend
5.1 Amount
No dividends for SSL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.49
-0.1 (-2.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners56.02%
Inst Owner Change-0.15%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap2.22B
Analysts78.57
Price Target9.69 (177.65%)
Short Float %1.16%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.56%
PT rev (3m)-20.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.85%
EPS NY rev (3m)-22.9%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.29 | ||
| Fwd PE | 1.83 | ||
| P/S | 0.16 | ||
| P/FCF | 3.56 | ||
| P/OCF | 1.02 | ||
| P/B | 0.28 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.66
EY18.91%
EPS(NY)1.91
Fwd EY54.73%
FCF(TTM)0.98
FCFY28.08%
OCF(TTM)3.42
OCFY98%
SpS21.77
BVpS12.36
TBVpS12.16
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.4% | ||
| ROE | -33.26% | ||
| ROCE | 13.66% | ||
| ROIC | 8.78% | ||
| ROICexc | 10.13% | ||
| ROICexgc | 10.22% | ||
| OM | 15.82% | ||
| PM (TTM) | N/A | ||
| GM | 50.05% | ||
| FCFM | 4.5% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.72%
OM growth 5Y2.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.77%
GM growth 5Y-2.12%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.43 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 11.21% | ||
| Interest Coverage | -4.64 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.72 |
F-Score5
WACC15.64%
ROIC/WACC0.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)9.98%
Cap/Sales(5y)11.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.13%
EPS 3Y-24.6%
EPS 5Y-11.34%
EPS Q2Q%-23.59%
EPS Next Y80.59%
EPS Next 2Y46.14%
EPS Next 3Y39.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.85%
Revenue growth 3Y10.86%
Revenue growth 5Y6.21%
Sales Q2Q%-10.41%
Revenue Next Year-8.2%
Revenue Next 2Y-1.45%
Revenue Next 3Y1.39%
Revenue Next 5YN/A
EBIT growth 1Y-3.31%
EBIT growth 3Y12.77%
EBIT growth 5Y9.01%
EBIT Next Year13.87%
EBIT Next 3Y13.24%
EBIT Next 5YN/A
FCF growth 1Y12725.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.79%
OCF growth 3Y-3.38%
OCF growth 5Y-1.38%