SSL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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 quite cheap, while showing a decent growth score. This is a good combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

SSL had positive earnings in the past year.
SSL had a positive operating cash flow in the past year.
SSL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SSL had a positive operating cash flow.

1.2 Ratios

The Return On Assets of SSL (1.88%) is better than 62.65% of its industry peers.
SSL has a better Return On Equity (4.44%) than 62.65% of its industry peers.
With a decent Return On Invested Capital value of 7.92%, SSL is doing good in the industry, outperforming 74.70% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.88%
ROE	4.44%
ROIC	7.92%

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

Looking at the Profit Margin, with a value of 2.72%, SSL is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
In the last couple of years the Profit Margin of SSL has declined.
The Operating Margin of SSL (14.67%) is better than 74.70% of its industry peers.
SSL's Operating Margin has improved in the last couple of years.
SSL's Gross Margin of 48.16% is amongst the best of the industry. SSL outperforms 91.57% of its industry peers.
SSL's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	14.67%
PM (TTM)	2.72%
GM	48.16%

OM growth 3Y-16.24%

OM growth 5Y14.14%

PM growth 3Y-42.49%

PM growth 5YN/A

GM growth 3Y-4.06%

GM growth 5Y-1.77%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 1.81. This is a bad value and indicates that SSL is not financially healthy and even has some risk of bankruptcy.
SSL has a Altman-Z score (1.81) which is comparable to the rest of the industry.
The Debt to FCF ratio of SSL is 9.36, which is on the high side as it means it would take SSL, 9.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.36, SSL is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that SSL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, SSL perfoms like the industry average, outperforming 50.60% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.68
Debt/FCF	9.36
Altman-Z	1.81

ROIC/WACC0.37

WACC21.47%

2.3 Liquidity

A Current Ratio of 1.87 indicates that SSL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.87, SSL is in line with its industry, outperforming 48.19% of the companies in the same industry.
SSL has a Quick Ratio of 1.27. 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 Quick ratio (1.27) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.87
Quick Ratio	1.27

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SSL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.55%, which is quite impressive.
Measured over the past years, SSL shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.34% on average per year.
Looking at the last year, SSL shows a decrease in Revenue. The Revenue has decreased by -9.46% in the last year.
SSL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.52% yearly.

EPS 1Y (TTM)108.55%

EPS 3Y-9.34%

EPS 5YN/A

EPS Q2Q%1347.31%

Revenue 1Y (TTM)-9.46%

Revenue growth 3Y-2.98%

Revenue growth 5Y5.52%

Sales Q2Q%-8.52%

3.2 Future

The Earnings Per Share is expected to grow by 3.79% on average over the next years.
The Revenue is expected to grow by 3.52% on average over the next years.

EPS Next Y-33.76%

EPS Next 2Y-5.42%

EPS Next 3Y3.79%

EPS Next 5YN/A

Revenue Next Year-1.43%

Revenue Next 2Y1.98%

Revenue Next 3Y3.52%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 3.34, which indicates a rather cheap valuation of SSL.
Based on the Price/Earnings ratio, SSL is valued cheaper than 97.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.87, SSL is valued rather cheaply.
The Price/Forward Earnings ratio is 5.04, which indicates a rather cheap valuation of SSL.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of 25.96, SSL is valued rather cheaply.

		Industry Rank	Sector Rank
PE	3.34
Fwd PE	5.04

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 93.98% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.81
EV/EBITDA	N/A

4.3 Compensation for Growth

SSL has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-5.42%

EPS Next 3Y3.79%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.02%, SSL is a good candidate for dividend investing.
SSL's Dividend Yield is rather good when compared to the industry average which is at 2.23. SSL pays more dividend than 91.57% of the companies in the same industry.
SSL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	8.02%

5.2 History

SSL has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DPN/A

EPS Next 2Y-5.42%

EPS Next 3Y3.79%

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SASOL LTD-SPONSORED ADR / SSL FAQ

What is the ChartMill fundamental rating of SASOL LTD-SPONSORED ADR (SSL) stock?

ChartMill assigns a fundamental rating of 5 / 10 to SSL.

What is the valuation status of SASOL LTD-SPONSORED ADR (SSL) stock?

ChartMill assigns a valuation rating of 7 / 10 to SASOL LTD-SPONSORED ADR (SSL). This can be considered as Undervalued.

How profitable is SASOL LTD-SPONSORED ADR (SSL) stock?

SASOL LTD-SPONSORED ADR (SSL) has a profitability rating of 6 / 10.

Can you provide the financial health for SSL stock?

The financial health rating of SASOL LTD-SPONSORED ADR (SSL) is 3 / 10.