SASOL LTD-SPONSORED ADR (SSL)

US8038663006 - ADR

4.67  +0.05 (+1.08%)

After market: 4.67 0 (0%)

Fundamental Rating

4

Taking everything into account, SSL scores 4 out of 10 in our fundamental rating. SSL was compared to 83 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 valued quite cheap, but it does not seem to be growing.



4

1. Profitability

1.1 Basic Checks

SSL had positive earnings in the past year.
In the past year SSL had a positive cash flow from operations.
In multiple years SSL reported negative net income over the last 5 years.
SSL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

SSL has a worse Return On Assets (-12.13%) than 86.75% of its industry peers.
SSL has a Return On Equity of -30.96%. This is amonst the worse of the industry: SSL underperforms 85.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.59%, SSL belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
Industry RankSector Rank
ROA -12.13%
ROE -30.96%
ROIC 9.59%
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

The Operating Margin of SSL (16.83%) is better than 86.75% of its industry peers.
SSL's Operating Margin has improved in the last couple of years.
SSL has a better Gross Margin (49.85%) than 91.57% of its industry peers.
SSL's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 16.83%
PM (TTM) N/A
GM 49.85%
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%

3

2. Health

2.1 Basic Checks

SSL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SSL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

SSL has an Altman-Z score of 1.89. This is not the best score and indicates that SSL is in the grey zone with still only limited risk for bankruptcy at the moment.
SSL's Altman-Z score of 1.89 is in line compared to the rest of the industry. SSL outperforms 50.60% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that SSL is somewhat dependend on debt financing.
SSL's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. SSL is outperformed by 67.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF N/A
Altman-Z 1.89
ROIC/WACC0.63
WACC15.1%

2.3 Liquidity

A Current Ratio of 2.32 indicates that SSL has no problem at all paying its short term obligations.
SSL has a Current ratio (2.32) which is comparable to the rest of the industry.
A Quick Ratio of 1.58 indicates that SSL should not have too much problems paying its short term obligations.
The Quick ratio of SSL (1.58) is better than 62.65% of its industry peers.
Industry RankSector Rank
Current Ratio 2.32
Quick Ratio 1.58

3

3. Growth

3.1 Past

SSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.04%.
SSL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.34% yearly.
Looking at the last year, SSL shows a decrease in Revenue. The Revenue has decreased by -4.39% in the last year.
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)-67.04%
EPS 3Y-24.6%
EPS 5Y-11.34%
EPS Q2Q%-108.15%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y10.86%
Revenue growth 5Y6.21%
Sales Q2Q%0.64%

3.2 Future

Based on estimates for the next years, SSL will show a very strong growth in Earnings Per Share. The EPS will grow by 47.01% on average per year.
SSL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y139.92%
EPS Next 2Y68.31%
EPS Next 3Y47.01%
EPS Next 5YN/A
Revenue Next Year-4.5%
Revenue Next 2Y0.44%
Revenue Next 3Y2.73%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.19, 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 97.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SSL is valued rather cheaply.
The Price/Forward Earnings ratio is 2.17, which indicates a rather cheap valuation of SSL.
100.00% of the companies in the same industry are more expensive than SSL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SSL is valued rather cheaply.
Industry RankSector Rank
PE 5.19
Fwd PE 2.17

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
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.
A more expensive valuation may be justified as SSL's earnings are expected to grow with 47.01% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y68.31%
EPS Next 3Y47.01%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.38%, SSL has a reasonable but not impressive dividend return.
In the last 3 months the price of SSL has falen by -31.82%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SSL's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.34, SSL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.38%

5.2 History

SSL has paid a dividend for at least 10 years, which is a reliable track record.
SSL has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

DPN/A
EPS Next 2Y68.31%
EPS Next 3Y47.01%

SASOL LTD-SPONSORED ADR

NYSE:SSL (12/20/2024, 8:04:01 PM)

After market: 4.67 0 (0%)

4.67

+0.05 (+1.08%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)08-20 2024-08-20/bmo
Earnings (Next)N/A N/A
Inst Owners56.24%
Inst Owner Change11.44%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap3.02B
Analysts80
Price Target12.42 (165.95%)
Short Float %0.92%
Short Ratio4.9
Dividend
Industry RankSector Rank
Dividend Yield 2.38%
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date03-13 2024-03-13 (2)
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)-6.82%
PT rev (3m)-6.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-9.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.55%
Valuation
Industry RankSector Rank
PE 5.19
Fwd PE 2.17
P/S 0.2
P/FCF N/A
P/OCF 1.86
P/B 0.39
P/tB 0.39
EV/EBITDA N/A
EPS(TTM)0.9
EY19.27%
EPS(NY)2.15
Fwd EY46.14%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)2.51
OCFY53.85%
SpS23.25
BVpS12.09
TBVpS11.88
PEG (NY)0.04
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -12.13%
ROE -30.96%
ROCE 14.91%
ROIC 9.59%
ROICexc 11.38%
ROICexgc 11.49%
OM 16.83%
PM (TTM) N/A
GM 49.85%
FCFM N/A
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 Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 10.96%
Interest Coverage -5.36
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.32
Quick Ratio 1.58
Altman-Z 1.89
F-Score5
WACC15.1%
ROIC/WACC0.63
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)-67.04%
EPS 3Y-24.6%
EPS 5Y-11.34%
EPS Q2Q%-108.15%
EPS Next Y139.92%
EPS Next 2Y68.31%
EPS Next 3Y47.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y10.86%
Revenue growth 5Y6.21%
Sales Q2Q%0.64%
Revenue Next Year-4.5%
Revenue Next 2Y0.44%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y-12.09%
EBIT growth 3Y12.77%
EBIT growth 5Y9.01%
EBIT Next Year33.72%
EBIT Next 3Y17.59%
EBIT Next 5YN/A
FCF growth 1Y-108.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.01%
OCF growth 3Y-3.38%
OCF growth 5Y-1.38%