SASOL LTD-SPONSORED ADR (SSL)

US8038663006 - ADR

7.07  -0.1 (-1.39%)

After market: 7 -0.07 (-0.99%)

Fundamental Rating

3

SSL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 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.
SSL had a positive operating cash flow in the past year.
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

The Return On Assets of SSL (0.89%) is worse than 63.53% of its industry peers.
SSL has a Return On Equity of 1.92%. This is in the lower half of the industry: SSL underperforms 62.35% of its industry peers.
SSL's Return On Invested Capital of 8.63% is fine compared to the rest of the industry. SSL outperforms 74.12% 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

The Profit Margin of SSL (1.39%) is worse than 61.18% of its industry peers.
In the last couple of years the Profit Margin of SSL has declined.
SSL's Operating Margin of 15.57% is amongst the best of the industry. SSL outperforms 82.35% of its industry peers.
SSL's Operating Margin has been stable in the last couple of years.
SSL has a better Gross Margin (48.92%) than 92.94% 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

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 1.79, we must say that SSL is in the distress zone and has some risk of bankruptcy.
SSL has a Altman-Z score (1.79) which is in line with its industry peers.
SSL has a debt to FCF ratio of 41.60. This is a negative value and a sign of low solvency as SSL would need 41.60 years to pay back of all of its debts.
SSL's Debt to FCF ratio of 41.60 is in line compared to the rest of the industry. SSL outperforms 41.18% of its industry peers.
SSL has a Debt/Equity ratio of 0.55. This is a neutral value indicating SSL is somewhat dependend on debt financing.
SSL has a Debt to Equity ratio (0.55) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 41.6
Altman-Z 1.79
ROIC/WACC0.64
WACC13.58%

2.3 Liquidity

SSL has a Current Ratio of 1.54. This is a normal value and indicates that SSL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SSL (1.54) is worse than 72.94% of its industry peers.
A Quick Ratio of 0.99 indicates that SSL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, SSL is doing worse than 68.24% of the companies in the same industry.
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.
SSL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.27%.
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 growth Q2Q-39.23%
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y15.02%
Revenue growth 5Y9.81%
Revenue growth Q2Q-9.02%

3.2 Future

SSL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.58% yearly.
Based on estimates for the next years, SSL will show a small growth in Revenue. The Revenue will grow by 0.69% on average per year.
EPS Next Y-17.3%
EPS Next 2Y-1.57%
EPS Next 3Y3.58%
EPS Next 5YN/A
Revenue Next Year-5.37%
Revenue Next 2Y-1.28%
Revenue Next 3Y0.69%
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 decreasing.
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

Based on the Price/Earnings ratio of 3.20, the valuation of SSL can be described as very cheap.
98.82% of the companies in the same industry are more expensive than SSL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.25. SSL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 2.53, which indicates a rather cheap valuation of SSL.
SSL's Price/Forward Earnings ratio is rather cheap when compared to the industry. SSL is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, SSL is valued rather cheaply.
Industry RankSector Rank
PE 3.2
Fwd PE 2.53

4.2 Price Multiples

SSL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 26.01
EV/EBITDA N/A

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-1.57%
EPS Next 3Y3.58%

5

5. Dividend

5.1 Amount

SSL has a Yearly Dividend Yield of 7.55%, which is a nice return.
SSL's Dividend Yield is rather good when compared to the industry average which is at 3.34. SSL pays more dividend than 94.12% of the companies in the same industry.
SSL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 7.55%

5.2 History

SSL has been paying a dividend for at least 10 years, so it has 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 2Y-1.57%
EPS Next 3Y3.58%

SASOL LTD-SPONSORED ADR

NYSE:SSL (4/24/2024, 7:04:01 PM)

After market: 7 -0.07 (-0.99%)

7.07

-0.1 (-1.39%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.57B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 7.55%
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)
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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 3.2
Fwd PE 2.53
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)0.24
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)
Growth
EPS 1Y (TTM)-37.38%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y15.02%
Revenue growth 5Y
Revenue growth 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