Washington H. Soul Pattinson and Co. Ltd. (AU:SOL)
OTHER OTC:SOL
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Washington H. Soul Pattinson and Co.
(OTC:SOL)
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Rating:60Neutral
Price Target:
AU$45.00
▲(18.98% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by mixed financial performance—strong balance sheet and profitability metrics but meaningful revenue and free-cash-flow deterioration. Technical indicators are broadly neutral with mild positive momentum, while valuation is a headwind due to a high P/E. The latest earnings call was supportive overall, highlighting strong liquidity, NAV growth, and continued dividend increases despite execution and cycle-related risks.
Positive Factors
Balance Sheet Strength
Conservative leverage and a strong equity ratio give SOL durable financial flexibility. Low gearing reduces refinancing and liquidity risk, enabling countercyclical deployment, support for dividends and M&A, and insulation from short‑term market stress over the next several months.
Negative Factors
Revenue & Operating Profit Pressure
A sharp revenue decline and negative EBIT point to underlying operational stress in subsidiaries or reclassified income streams. If persistent, weaker operating profitability can erode sustainable earnings, reduce internally generated capital and constrain reinvestment or dividend coverage over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Conservative leverage and a strong equity ratio give SOL durable financial flexibility. Low gearing reduces refinancing and liquidity risk, enabling countercyclical deployment, support for dividends and M&A, and insulation from short‑term market stress over the next several months.
Read all positive factors
Washington H. Soul Pattinson and Co. (SOL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$16.32B
Dividend Yield2.83%
Average Volume (3M)757.83K
Price to Earnings (P/E)1.5
Beta (1Y)0.71
Revenue Growth10.37%
EPS Growth-25.81%
CountryAU
Employees56
SectorFinancial
Sector Strength70
IndustryCoal
Share Statistics
EPS (TTM)6.29
Shares Outstanding379,919,680
10 Day Avg. Volume654,993
30 Day Avg. Volume757,832
Financial Highlights & Ratios
PEG Ratio-1.29
Price to Book (P/B)1.41
Price to Sales (P/S)21.60
P/FCF Ratio64.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$41.85Price Target Upside10.66% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Washington H. Soul Pattinson and Co. Business Overview & Revenue Model
Company Description
Washington H. Soul Pattinson and Company Limited, an investment company, engages in investing various industries and asset classes in Australia. It operates through Strategic Portfolio, Large Caps Portfolio, Emerging Companies Portfolio, Private E...
How the Company Makes Money
SOL primarily makes money through investment returns from its portfolio and earnings contributions from controlled or significantly influenced businesses. Key income sources include (1) dividends and distributions received from equity investments ...
Washington H. Soul Pattinson and Co. Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 30, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial and portfolio metrics: NAV and net cash flow growth, dividend increase, ample liquidity (cash and undrawn facilities), and pronounced outperformance in emerging companies and overall portfolio returns. Management also emphasized active rebalancing (over $4.3B of transactions), structural advantages (permanent capital, unconstrained mandate), and a strengthened balance sheet following the Brickworks merger. Key challenges were primarily execution and cyclical or market‑timing related: statutory NPAT was distorted by one‑off merger accounting items, listed company cash flow declined due to portfolio reclassification, credit deployment was momentarily constrained by repayments, and certain portfolio segments (building products) face cyclical softness. Geopolitical and private credit market risks were acknowledged but framed as manageable given the firm's defensive positioning and liquidity. On balance, the positive operational and financial developments, plus strong liquidity and long‑term track record, outweigh the manageable lowlights.Positive Updates
Net Asset Value Growth and Market Outperformance
Total portfolio NAV of $13.8 billion, up $1.8 billion on the prior corresponding period. Portfolio returned 9.7% per share for the half and outperformed the ASX 200 Index by 6.6% for the period; 12-month trailing return (adjusted for dividends) was ~14.3%.
Negative Updates
Statutory NPAT Distorted by Large Non‑Recurring Items
Reported statutory NPAT of $2.3 billion is materially influenced by ~ $2 billion of non‑recurring items related to the Brickworks merger and tax cost base reset (one-off accounting gains and unrealized trading gains). Underlying (regular) NPAT is ~ $300 million, up nearly 7%, which may cause confusion if investors focus on statutory figures.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Asset Value Growth and Market Outperformance
Total portfolio NAV of $13.8 billion, up $1.8 billion on the prior corresponding period. Portfolio returned 9.7% per share for the half and outperformed the ASX 200 Index by 6.6% for the period; 12-month trailing return (adjusted for dividends) was ~14.3%.
Read all positive updates
Company Guidance
Management's guidance was to prioritize liquidity, repositioning and opportunistic, disciplined deployment into dislocations, supported by a $13.8bn portfolio (NAV up $1.8bn) and available liquidity of ~$472m cash plus ~$1.2bn of undrawn debt; they reiterated using permanent capital and an unconstrained mandate to act countercyclically. Key metrics underpinning that guidance: net cash flow from investments of $334m (up 15.4% YoY; $0.89ps vs $0.68ps in 1H23; ~9% 3‑yr CAGR) which supports a fully‑franked interim dividend of $0.48ps (up 9.1%; 28th consecutive increase), underlying NPAT of ~ $300m (up ~7%) and statutory NPAT of $2.3bn (with ~ $2bn non‑recurring items). They reported ~$4.3bn of transaction activity in the half (≈$2.1bn new investments — $1.0bn emerging, $0.5bn large‑cap, $0.4bn credit, ~$0.1bn private companies), portfolio mix of listed 32% / emerging 21% / credit 12% (NAV $1.6bn, +36.5%) / private companies 11% (NAV $1.6bn, +49%) / real assets 22%, international exposure 18%, and a franking credit balance of >$1.1bn; incremental offshore deployment was described as deliberate (c. $500m p.a. pacing).Washington H. Soul Pattinson and Co. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
70
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.23B | 613.40M | 557.60M | 362.90M | 2.56B | 1.07B |
| Gross Profit | 580.30M | 157.30M | 154.60M | 108.37M | 1.53B | 535.38M |
| EBITDA | 133.90M | 574.20M | 568.40M | 237.82M | 1.25B | 471.69M |
| Net Income | 2.34B | 364.20M | 498.80M | 690.72M | -12.94M | 273.20M |
Balance Sheet | ||||||
| Total Assets | 15.13B | 11.18B | 10.40B | 9.80B | 9.71B | 7.64B |
| Cash, Cash Equivalents and Short-Term Investments | 2.16B | 1.16B | 743.50M | 1.33B | 1.08B | 1.01B |
| Total Debt | 1.28B | 1.01B | 765.90M | 436.94M | 547.90M | 1.17B |
| Total Liabilities | 1.77B | 1.77B | 1.40B | 1.06B | 1.25B | 2.48B |
| Stockholders Equity | 13.35B | 9.41B | 8.99B | 8.72B | 8.45B | 4.09B |
Cash Flow | ||||||
| Free Cash Flow | -593.00M | 205.80M | 255.70M | 596.24M | 1.01B | 333.16M |
| Operating Cash Flow | -482.50M | 328.40M | 429.30M | 773.54M | 1.19B | 514.72M |
| Investing Cash Flow | 1.01B | -467.10M | -301.80M | -454.80M | -485.72M | -413.71M |
| Financing Cash Flow | -277.90M | 115.90M | -178.20M | -513.51M | -814.52M | 162.93M |
Washington H. Soul Pattinson and Co. Technical Analysis
Positive
37.82
Price Trends
38.64
Positive
37.81
Positive
39.08
Positive
Market Momentum
1.25
Negative
74.62
Negative
90.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOL, the sentiment is Positive. The current price of 37.82 is below the 20-day moving average (MA) of 39.91, below the 50-day MA of 38.64, and below the 200-day MA of 39.08, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 74.62 is Negative, neither overbought nor oversold. The STOCH value of 90.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SOL.
Washington H. Soul Pattinson and Co. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$4.37B | 17.50 | 5.87% | 8.48% | -1.53% | -7.57% | |
72 Outperform | AU$9.53B | 14.86 | 4.93% | 11.73% | -8.45% | -24.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | AU$6.65B | 23.23 | 11.25% | 1.92% | 52.51% | 82.60% | |
62 Neutral | AU$2.31B | -42.81 | -4.42% | 7.32% | -18.98% | -99.05% | |
60 Neutral | AU$16.32B | 1.52 | 20.57% | 2.83% | 10.37% | -25.81% | |
44 Neutral | AU$553.23M | -0.80 | -52.66% | 4.79% | -23.91% | -352.91% |
* Financial Sector Average
AU:SOL
Washington H. Soul Pattinson and Co.
42.72
7.36
20.81%
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AU:CRN
Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh
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Washington H. Soul Pattinson and Co. Corporate Events
Soul Patts Sells $245m TPG Stake, Exits as Substantial Holder
Apr 9, 2026
Washington H. Soul Pattinson and Company Limited and associated entities have ceased to be a substantial holder in TPG Telecom Limited after selling 61,525,000 ordinary shares on 8 April 2026 for $244.9 million. The disposal ends WHSP’s subs...
Soul Patts Ceases to Be Substantial Holder in Symal Group
Apr 9, 2026
Washington H. Soul Pattinson and Company Limited (Soul Patts) has notified Symal Group Limited that it has ceased to be a substantial shareholder as of 7 April 2026, in accordance with Australian Corporations Act disclosure rules. The change refle...
Washington H. Soul Pattinson Updates Registered Office Address in Sydney CBD
Mar 29, 2026
Washington H. Soul Pattinson has changed its registered office and principal place of business to Level 8, 121 Castlereagh Street, Sydney NSW 2000, effective immediately. The company emphasized that its postal address, website, and contact numbers...
Washington H. Soul Pattinson Posts $13.8b Portfolio Value and Extends 123-Year Dividend Run
Mar 25, 2026
Washington H. Soul Pattinson reported that its total portfolio net asset value (pre-tax) reached $13.8 billion for the half year ended 31 January 2026, spanning listed companies, credit, private and emerging companies, and real assets. The group h...
Soul Patts lifts NAV, cash flows and dividend on record portfolio activity
Mar 25, 2026
Washington H. Soul Pattinson reported a strong first half to 31 January 2026, with pre‑tax net asset value rising 14.6% to $13.8 billion and net cash flow from investments up 15.4% to $334 million, reflecting robust trading gains and broad&#...
Washington H. Soul Pattinson Declares AUD 0.48 Interim Dividend
Mar 25, 2026
Washington H. Soul Pattinson and Company Limited has declared an interim dividend of AUD 0.48 per ordinary fully paid share for the six-month period ended 31 January 2026, payable to holders of its SOL securities. The dividend will be paid on 14 M...
Soul Patts sets date and webcast for FY26 half‑year results
Mar 18, 2026
Washington H. Soul Pattinson has announced it will release its financial results for the half year ended 31 January 2026 on 26 March 2026. The company will host an audio webcast of the FY26 half‑year results presentation, led by CEO and Mana...
Soul Pattinson Announces Resignation of Company Secretary
Feb 20, 2026
Washington H. Soul Pattinson and Company Limited announced that Pamela Longstaff has resigned from her role as Company Secretary, effective 20 February 2026. The company confirmed that existing Company Secretary David Grbin will continue in the po...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.