SASOL LTD-SPONSORED ADR (SSL) Stock Fundamental Analysis
USA - NYSE:SSL - US8038663006 - ADR
5.48 USD
-0.39 (-6.64%)
5.52 USD
+0.04 (+0.73%)
SSL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SSL always reported a positive cash flow from operatings.
1.2 Ratios
SSL's Return On Assets of 1.88% is in line compared to the rest of the industry. SSL outperforms 57.83% of its industry peers.
SSL's Return On Equity of 4.44% is in line compared to the rest of the industry. SSL outperforms 59.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.92%, SSL is in the better half of the industry, outperforming 73.49% 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 line with its industry, outperforming 59.04% of the companies in the same industry.
SSL's Profit Margin has declined in the last couple of years.
SSL has a Operating Margin of 14.67%. This is in the better half of the industry: SSL outperforms 78.31% of its industry peers.
SSL's Operating Margin has improved in the last couple of years.
SSL has a better Gross Margin (48.16%) than 92.77% of its industry peers.
In the last couple of years the Gross Margin of SSL has declined.
| 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%
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
Based on the Altman-Z score of 1.78, we must say that SSL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, SSL is in line with its industry, outperforming 48.19% of the companies in the same industry.
SSL has a debt to FCF ratio of 9.36. This is a negative value and a sign of low solvency as SSL would need 9.36 years to pay back of all of its debts.
SSL's Debt to FCF ratio of 9.36 is fine compared to the rest of the industry. SSL outperforms 66.27% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SSL is somewhat dependend on debt financing.
SSL has a Debt to Equity ratio of 0.68. This is comparable to the rest of the industry: SSL outperforms 50.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 9.36 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.54
WACC14.79%
2.3 Liquidity
SSL has a Current Ratio of 1.87. 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 Current ratio, with a value of 1.87, SSL is in line with its industry, outperforming 43.37% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that SSL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, SSL perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.55% over the past year.
SSL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.34% yearly.
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
SSL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
Based on estimates for the next years, SSL will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
EPS Next Y-22.02%
EPS Next 2Y-0.61%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year-1.95%
Revenue Next 2Y1.82%
Revenue Next 3Y4.77%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 2.69, 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.
The average S&P500 Price/Earnings ratio is at 27.40. SSL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.45, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.94. SSL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.69 | ||
| Fwd PE | 3.45 |
4.2 Price Multiples
95.18% of the companies in the same industry are more expensive than SSL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.61%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
SSL has a Yearly Dividend Yield of 8.02%, which is a nice return.
SSL's Dividend Yield is rather good when compared to the industry average which is at 3.69. SSL pays more dividend than 90.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SSL pays a better dividend.
| 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-0.61%
EPS Next 3Y6.13%
5.48
-0.39 (-6.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners61%
Inst Owner Change0.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.49B
Analysts77.14
Price Target9.99 (82.3%)
Short Float %1.08%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
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)8.68%
PT rev (3m)12.78%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-7.14%
EPS NY rev (3m)-23.58%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-5.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.69 | ||
| Fwd PE | 3.45 | ||
| P/S | 0.24 | ||
| P/FCF | 4.69 | ||
| P/OCF | 1.58 | ||
| P/B | 0.4 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.04
EY37.23%
EPS(NY)1.59
Fwd EY28.97%
FCF(TTM)1.17
FCFY21.34%
OCF(TTM)3.47
OCFY63.4%
SpS22.59
BVpS13.82
TBVpS13.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 4.44% | ||
| ROCE | 12.6% | ||
| ROIC | 7.92% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 9.53% | ||
| OM | 14.67% | ||
| PM (TTM) | 2.72% | ||
| GM | 48.16% | ||
| FCFM | 5.18% |
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 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%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 9.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 10.2% | ||
| Interest Coverage | -4.57 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 190.56% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 1.78 |
F-Score5
WACC14.79%
ROIC/WACC0.54
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)10.61%
Cap/Sales(5y)9.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)108.55%
EPS 3Y-9.34%
EPS 5YN/A
EPS Q2Q%1347.31%
EPS Next Y-22.02%
EPS Next 2Y-0.61%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.46%
Revenue growth 3Y-2.98%
Revenue growth 5Y5.52%
Sales Q2Q%-8.52%
Revenue Next Year-1.95%
Revenue Next 2Y1.82%
Revenue Next 3Y4.77%
Revenue Next 5YN/A
EBIT growth 1Y-21.08%
EBIT growth 3Y-18.73%
EBIT growth 5Y20.44%
EBIT Next Year46.72%
EBIT Next 3Y24.59%
EBIT Next 5YN/A
FCF growth 1Y3260.54%
FCF growth 3Y-9.74%
FCF growth 5YN/A
OCF growth 1Y28.76%
OCF growth 3Y-1.63%
OCF growth 5Y6.39%