SASOL LTD-SPONSORED ADR (SSL)

US8038663006 - ADR

7.78  +0.11 (+1.43%)

After market: 7.96 +0.18 (+2.31%)

Fundamental Rating

3

Taking everything into account, SSL scores 3 out of 10 in our fundamental rating. SSL was compared to 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 valuation in line with the averages, but on the other hand it scores bad on growth.



4

1. Profitability

1.1 Basic Checks

In the past year SSL was profitable.
In the past year SSL had a positive cash flow from operations.
Of the past 5 years SSL 4 years were profitable.
Each year in the past 5 years SSL had a positive operating cash flow.

1.2 Ratios

SSL's Return On Assets of 0.89% is on the low side compared to the rest of the industry. SSL is outperformed by 61.45% of its industry peers.
SSL has a Return On Equity (1.92%) which is comparable to the rest of the industry.
The Return On Invested Capital of SSL (8.63%) is better than 78.31% of its industry peers.
Industry RankSector Rank
ROA 0.89%
ROE 1.92%
ROIC 8.63%
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

With a Profit Margin value of 1.39%, SSL is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SSL has declined.
SSL has a Operating Margin of 15.57%. This is amongst the best in the industry. SSL outperforms 81.93% of its industry peers.
In the last couple of years the Operating Margin of SSL has remained more or less at the same level.
SSL's Gross Margin of 48.92% is amongst the best of the industry. SSL outperforms 92.77% of its industry peers.
In the last couple of years the Gross Margin of SSL has declined.
Industry RankSector Rank
OM 15.57%
PM (TTM) 1.39%
GM 48.92%
OM growth 3Y29.2%
OM growth 5Y-0.74%
PM growth 3YN/A
PM growth 5Y-8.79%
GM growth 3Y-3.43%
GM growth 5Y-3.87%

2

2. Health

2.1 Basic Checks

SSL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.80, we must say that SSL is in the distress zone and has some risk of bankruptcy.
SSL has a Altman-Z score (1.80) which is comparable to the rest of the industry.
The Debt to FCF ratio of SSL is 41.60, which is on the high side as it means it would take SSL, 41.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 41.60, SSL is doing worse than 65.06% of the companies in the same industry.
SSL has a Debt/Equity ratio of 0.55. This is a neutral value indicating SSL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, SSL perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 41.6
Altman-Z 1.8
ROIC/WACC0.65
WACC13.33%

2.3 Liquidity

A Current Ratio of 1.54 indicates that SSL should not have too much problems paying its short term obligations.
SSL has a Current ratio of 1.54. This is in the lower half of the industry: SSL underperforms 73.49% of its industry peers.
A Quick Ratio of 0.99 indicates that SSL may have some problems paying its short term obligations.
SSL has a worse Quick ratio (0.99) than 69.88% of its industry peers.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 0.99

3

3. Growth

3.1 Past

SSL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.38%.
SSL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.23% yearly.
The Revenue for SSL has decreased by -10.27% in the past year. This is quite bad
Measured over the past years, SSL shows a quite strong growth in Revenue. The Revenue has been growing by 9.81% on average per year.
EPS 1Y (TTM)-37.38%
EPS 3YN/A
EPS 5Y13.23%
EPS Q2Q%-39.23%
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y15.02%
Revenue growth 5Y9.81%
Sales Q2Q%-9.02%

3.2 Future

The Earnings Per Share is expected to grow by 3.33% on average over the next years.
The Revenue is expected to grow by 0.79% on average over the next years.
EPS Next Y-18.19%
EPS Next 2Y-2.99%
EPS Next 3Y3.33%
EPS Next 5YN/A
Revenue Next Year-5.35%
Revenue Next 2Y-1.49%
Revenue Next 3Y0.79%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 3.38 indicates a rather cheap valuation of SSL.
SSL's Price/Earnings ratio is rather cheap when compared to the industry. SSL is cheaper than 96.39% of the companies in the same industry.
SSL is valuated cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 2.76, the valuation of SSL can be described as very cheap.
Based on the Price/Forward Earnings ratio, SSL is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. SSL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.38
Fwd PE 2.76

4.2 Price Multiples

SSL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 27.51
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-2.99%
EPS Next 3Y3.33%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.87%, SSL is a good candidate for dividend investing.
SSL's Dividend Yield is rather good when compared to the industry average which is at 3.07. SSL pays more dividend than 95.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, SSL pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.87%

5.2 History

SSL has been paying a dividend for at least 10 years, so it has 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 2Y-2.99%
EPS Next 3Y3.33%

SASOL LTD-SPONSORED ADR

NYSE:SSL (7/26/2024, 7:04:01 PM)

After market: 7.96 +0.18 (+2.31%)

7.78

+0.11 (+1.43%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.03B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 8.87%
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 RankSector Rank
PE 3.38
Fwd PE 2.76
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)N/A
PEG (5Y)0.26
Profitability
Industry RankSector Rank
ROA 0.89%
ROE 1.92%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.57%
PM (TTM) 1.39%
GM 48.92%
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 Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.54
Quick Ratio 0.99
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)-37.38%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-18.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y15.02%
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