SASOL LTD-SPONSORED ADR (SSL) Stock Fundamental Analysis
NYSE:SSL - New York Stock Exchange, Inc. - US8038663006 - ADR - Currency: USD
Overall SSL gets a fundamental rating of 4 out of 10. We evaluated SSL against 85 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 cheap, but on the other hand it scores bad on growth.
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 (-13.40%) than 80.00% of its industry peers.
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
Looking at the Operating Margin, with a value of 15.82%, SSL belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
SSL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.05%, SSL belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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 1.71, we must say that SSL is in the distress zone and has some risk of bankruptcy.
SSL has a Altman-Z score (1.71) which is comparable to the rest of the industry.
The Debt to FCF ratio of SSL is 11.43, which is on the high side as it means it would take SSL, 11.43 years of fcf income to pay off all of its debts.
SSL has a Debt to FCF ratio (11.43) which is comparable to the rest of the industry.
SSL has a Debt/Equity ratio of 0.79. This is a neutral value indicating SSL is somewhat dependend on debt financing.
The Debt to Equity ratio of SSL (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.43 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.56
WACC15.64%
2.3 Liquidity
A Current Ratio of 1.83 indicates that SSL should not have too much problems paying its short term obligations.
SSL's Current ratio of 1.83 is in line compared to the rest of the industry. SSL outperforms 45.88% 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.
SSL has a Quick ratio of 1.16. This is comparable to the rest of the industry: SSL outperforms 51.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
SSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.13%.
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 -4.85% in the last year.
The Revenue has been growing slightly by 6.21% on average over the past years.
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
SSL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.52% yearly.
SSL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.60% yearly.
EPS Next Y80.59%
EPS Next 2Y46.14%
EPS Next 3Y39.52%
EPS Next 5YN/A
Revenue Next Year-8.54%
Revenue Next 2Y-2.34%
Revenue Next 3Y0.6%
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
The Price/Earnings ratio is 5.17, which indicates a rather cheap valuation of SSL.
Based on the Price/Earnings ratio, SSL is valued cheaper than 96.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. SSL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 1.80, the valuation of SSL can be described as very cheap.
Based on the Price/Forward Earnings ratio, SSL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, SSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.17 | ||
| Fwd PE | 1.8 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SSL is valued cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.51 | ||
| 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)0.06
PEG (5Y)N/A
EPS Next 2Y46.14%
EPS Next 3Y39.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.02%, SSL is a good candidate for dividend investing.
Compared to an average S&P500 Dividend Yield of 2.44, SSL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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 2Y46.14%
EPS Next 3Y39.52%
3.57
+0.05 (+1.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners56.02%
Inst Owner Change-7.83%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap2.27B
Analysts78.57
Price Target8.63 (141.74%)
Short Float %1.4%
Short Ratio6.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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)-6.17%
PT rev (3m)-15.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.58%
EPS NY rev (3m)-10.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.17 | ||
| Fwd PE | 1.8 | ||
| P/S | 0.16 | ||
| P/FCF | 3.51 | ||
| P/OCF | 1.01 | ||
| P/B | 0.28 | ||
| P/tB | 0.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.69
EY19.33%
EPS(NY)1.98
Fwd EY55.52%
FCF(TTM)1.02
FCFY28.48%
OCF(TTM)3.55
OCFY99.41%
SpS22.59
BVpS12.82
TBVpS12.62
PEG (NY)0.06
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 | 1.71 |
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-8.54%
Revenue Next 2Y-2.34%
Revenue Next 3Y0.6%
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%