SASOL LTD-SPONSORED ADR (SSL)
US8038663006 - ADR
SSL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. While SSL is still in line with the averages on profitability rating, there are concerns on its financial health. SSL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SSL was profitable.
SSL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SSL reported negative net income in multiple years.
Each year in the past 5 years SSL had a positive operating cash flow.
1.2 Ratios
SSL's Return On Assets of -12.13% is on the low side compared to the rest of the industry. SSL is outperformed by 86.90% of its industry peers.
SSL's Return On Equity of -30.96% is on the low side compared to the rest of the industry. SSL is outperformed by 85.71% 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 84.52% of the companies in the same industry.
| Industry Rank | Sector 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 86.90% 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 92.86% of its industry peers.
In the last couple of years the Gross Margin of SSL has declined.
| Industry Rank | Sector 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%
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
SSL has an Altman-Z score of 1.94. 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 has a Altman-Z score of 1.94. This is comparable to the rest of the industry: SSL outperforms 46.43% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that SSL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.92, SSL is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.94 |
ROIC/WACC0.62
WACC15.34%
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.
SSL has a Quick Ratio of 1.58. This is a normal value and indicates that SSL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.58, SSL is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.58 |
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.
SSL shows a decrease in Revenue. In the last year, the revenue decreased by -4.39%.
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
SSL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.25% yearly.
The Revenue is expected to grow by 3.88% on average over the next years.
EPS Next Y166.37%
EPS Next 2Y76.22%
EPS Next 3Y24.25%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y1.83%
Revenue Next 3Y3.88%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.19, the valuation of SSL can be described as very cheap.
97.62% of the companies in the same industry are more expensive than SSL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 31.24, SSL is valued rather cheaply.
A Price/Forward Earnings ratio of 2.69 indicates a rather cheap valuation of SSL.
Based on the Price/Forward Earnings ratio, SSL is valued cheaper than 98.81% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, SSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 2.69 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SSL's 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 24.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y76.22%
EPS Next 3Y24.25%
5. Dividend
5.1 Amount
SSL has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
SSL's Dividend Yield is comparable with the industry average which is at 2.76.
SSL's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
SSL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SSL decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y76.22%
EPS Next 3Y24.25%
SASOL LTD-SPONSORED ADR
NYSE:SSL (10/9/2024, 8:27:08 PM)
Premarket: 6.87 +0.18 (+2.69%)6.69
-0.28 (-4.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 2.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.13% | ||
| ROE | -30.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.83% | ||
| PM (TTM) | N/A | ||
| GM | 49.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-67.04%
EPS 3Y-24.6%
EPS 5Y
EPS Q2Q%
EPS Next Y166.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y10.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y