SASOL LTD-SPONSORED ADR (SSL) Stock Fundamental Analysis
NYSE:SSL - New York Stock Exchange, Inc. - US8038663006 - ADR - Currency: USD
SSL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. SSL has a medium profitability rating, but doesn't score so well on its financial health evaluation. SSL has a bad growth rate and is valued cheaply.
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.
In multiple years SSL reported negative net income over the last 5 years.
In the past 5 years SSL always reported a positive cash flow from operatings.
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.
With a Return On Equity value of -33.26%, SSL is not doing good in the industry: 78.82% of the companies in the same industry are doing better.
SSL's Return On Invested Capital of 8.78% is fine compared to the rest of the industry. SSL outperforms 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
SSL has a better Operating Margin (15.82%) than 80.00% of its industry peers.
SSL's Operating Margin has improved in the last couple of years.
The Gross Margin of SSL (50.05%) is better than 94.12% of its industry peers.
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.
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
SSL has an Altman-Z score of 1.76. This is a bad value and indicates that SSL is not financially healthy and even has some risk of bankruptcy.
SSL's Altman-Z score of 1.76 is in line compared to the rest of the industry. SSL outperforms 44.71% of its industry peers.
SSL has a debt to FCF ratio of 11.43. This is a negative value and a sign of low solvency as SSL would need 11.43 years to pay back of all of its debts.
SSL has a Debt to FCF ratio of 11.43. This is in the better half of the industry: SSL outperforms 62.35% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that 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 | 1.76 |
ROIC/WACC0.56
WACC15.71%
2.3 Liquidity
SSL has a Current Ratio of 1.83. 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 Current ratio (1.83) which is in line with its industry peers.
A Quick Ratio of 1.16 indicates that SSL should not have too much problems paying its short term obligations.
SSL has a Quick ratio of 1.16. This is comparable to the rest of the industry: SSL outperforms 50.59% 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%.
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.
Looking at the last year, SSL shows a decrease in Revenue. The Revenue has decreased by -4.85% in the last year.
SSL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.21% yearly.
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 decrease in Revenue. In the coming years, the Revenue will decrease by -0.01% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
SSL is valuated cheaply with a Price/Earnings ratio of 7.03.
SSL's Price/Earnings ratio is rather cheap when compared to the industry. SSL is cheaper than 96.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, SSL is valued rather cheaply.
A Price/Forward Earnings ratio of 2.43 indicates a rather cheap valuation of SSL.
Based on the Price/Forward Earnings ratio, SSL is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, SSL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 2.43 |
4.2 Price Multiples
SSL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SSL is cheaper than 95.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SSL's 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)0.09
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.
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 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 2Y46.14%
EPS Next 3Y39.52%
4.99
-0.01 (-0.2%)
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 Cap3.18B
Analysts78.57
Price Target8.86 (77.56%)
Short Float %1.3%
Short Ratio6.14
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 | 7.03 | ||
| Fwd PE | 2.43 | ||
| P/S | 0.21 | ||
| P/FCF | 4.74 | ||
| P/OCF | 1.36 | ||
| P/B | 0.38 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.71
EY14.23%
EPS(NY)2.05
Fwd EY41.13%
FCF(TTM)1.05
FCFY21.1%
OCF(TTM)3.67
OCFY73.65%
SpS23.4
BVpS13.28
TBVpS13.07
PEG (NY)0.09
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 | 1.76 |
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%