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
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.
SSL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -13.40%, SSL is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
SSL has a worse Return On Equity (-33.26%) than 78.82% of its industry peers.
SSL has a better Return On Invested Capital (8.78%) than 76.47% 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 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SSL's Operating Margin has improved in the last couple of years.
SSL's Gross Margin of 50.05% is amongst the best of the industry. SSL outperforms 94.12% of its industry peers.
In the last couple of years the Gross Margin of SSL has declined.
| 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.
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
Based on the Altman-Z score of 1.74, we must say that SSL is in the distress zone and has some risk of bankruptcy.
SSL's Altman-Z score of 1.74 is in line compared to the rest of the industry. SSL outperforms 43.53% of its industry peers.
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 better Debt to FCF ratio (11.43) than 62.35% of its industry peers.
SSL has a Debt/Equity ratio of 0.79. This is a neutral value indicating SSL is somewhat dependend on debt financing.
SSL has a Debt to Equity ratio of 0.79. This is comparable to the rest of the industry: SSL outperforms 44.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 11.43 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.56
WACC15.71%
2.3 Liquidity
A Current Ratio of 1.83 indicates that SSL should not have too much problems paying its short term obligations.
SSL has a Current ratio (1.83) which is comparable to the rest of the industry.
A Quick Ratio of 1.16 indicates that SSL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, SSL is in line with its industry, outperforming 50.59% of the companies in the same industry.
| 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%.
Measured over the past years, SSL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.34% on average per year.
SSL shows a decrease in Revenue. In the last year, the revenue decreased by -4.85%.
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
The Earnings Per Share is expected to grow by 39.52% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.01% on average over the next years.
EPS Next Y80.59%
EPS Next 2Y46.14%
EPS Next 3Y39.52%
EPS Next 5YN/A
Revenue Next Year-8.84%
Revenue Next 2Y-3.22%
Revenue Next 3Y-0.01%
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.
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
A Price/Earnings ratio of 6.31 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.
SSL is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 2.19, 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 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, SSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 2.19 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SSL is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.26 | ||
| 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 39.52% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y46.14%
EPS Next 3Y39.52%
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 89.41% of the companies in the same industry.
SSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| 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.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y46.14%
EPS Next 3Y39.52%
4.42
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners55.5%
Inst Owner Change-0.09%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap2.81B
Analysts78.57
Price Target8.86 (100.45%)
Short Float %1.34%
Short Ratio5.55
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)2.61%
PT rev (3m)-10.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 2.19 | ||
| P/S | 0.19 | ||
| P/FCF | 4.26 | ||
| P/OCF | 1.22 | ||
| P/B | 0.34 | ||
| P/tB | 0.34 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.7
EY15.84%
EPS(NY)2.02
Fwd EY45.71%
FCF(TTM)1.04
FCFY23.45%
OCF(TTM)3.62
OCFY81.86%
SpS23.03
BVpS13.07
TBVpS12.87
PEG (NY)0.08
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 | 1.74 |
F-Score5
WACC15.71%
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-8.84%
Revenue Next 2Y-3.22%
Revenue Next 3Y-0.01%
Revenue Next 5YN/A
EBIT growth 1Y-3.31%
EBIT growth 3Y12.77%
EBIT growth 5Y9.01%
EBIT Next Year8.36%
EBIT Next 3Y9.57%
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%