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Sasol Ltd (SSL)
NYSE:SSL

Sasol (SSL) AI Stock Analysis

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SS

Sasol

(NYSE:SSL)

57Neutral
Sasol's overall stock score reflects a business facing significant financial challenges, particularly in terms of profitability and asset management. While the technical indicators show some positive momentum, they are counterbalanced by cautionary signals. The high dividend yield offers some appeal, but the negative P/E ratio highlights valuation concerns. Overall, substantial risks exist, but there are elements of operational efficiency and liquidity that provide a degree of stability.

Sasol (SSL) vs. S&P 500 (SPY)

Sasol Business Overview & Revenue Model

Company DescriptionSasol Limited (SSL) is an integrated global chemicals and energy company based in South Africa. The company operates through two main segments: Energy and Chemicals. Sasol is involved in the production of a variety of products including liquid fuels, chemicals, and low-carbon electricity. Its core activities encompass the extraction and processing of coal, oil, and gas, alongside the manufacturing of essential chemicals such as polymers, solvents, and fertilizers. With a strong presence in Southern Africa, Sasol also has operations in North America, Europe, and Asia.
How the Company Makes MoneySasol makes money primarily through the production and sale of energy and chemical products. Its revenue streams are diversified across its main segments. In the Energy sector, Sasol generates income from the sale of synthetic fuels, which are produced from coal and natural gas. This includes petrol, diesel, and jet fuel. The company also benefits from its gas operations, including the distribution of natural gas. In the Chemicals segment, Sasol earns revenue by producing and selling a wide range of chemical products such as polyethylene, polypropylene, and various solvents which are used in industries ranging from packaging to personal care. The company also engages in partnerships and joint ventures that enhance its production capabilities and market reach. Additionally, Sasol generates revenue from its renewable energy projects and the production of low-carbon electricity. Fluctuations in global commodity prices, exchange rates, and regulatory changes are significant factors influencing Sasol's earnings.

Sasol Financial Statement Overview

Summary
Sasol's financial statements reflect a challenging environment, marked by declining revenues and profitability issues. While operational efficiency remains respectable, the company faces financial stability concerns due to declining equity and asset values. Cash flow resilience provides some liquidity cushion, but high capital expenditures and net losses could constrain future growth.
Income Statement
45
Neutral
The company's income statement reveals significant volatility. Revenue decreased by 5% from the previous year, and the net profit margin is notably negative due to a substantial net loss. Gross profit margin stands at 44.23%, and EBIT margin is 17.49%, indicating some operational efficiency. However, the consistent decline in revenue and recent losses raise concerns about profitability sustainability.
Balance Sheet
55
Neutral
Sasol's balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.95, indicating manageable leverage. The equity ratio is 39.18%, suggesting a stable capital structure. However, the decline in stockholders' equity and total assets over recent years is a potential risk, reflecting challenges in asset management and financial growth.
Cash Flow
60
Neutral
The cash flow statement indicates resilience in operating cash flow with a positive operating cash flow to net income ratio, despite the net loss. Free cash flow decreased significantly, with a free cash flow to net income ratio suggesting inefficiency. Although operating cash flow remains positive, the declining free cash flow and high capital expenditures present a risk to liquidity.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
260.93B275.11B289.70B272.75B201.91B190.37B
Gross Profit
115.14B121.71B122.32B135.43B104.42B89.77B
EBIT
42.15B48.11B54.49B50.34B25.64B13.32B
EBITDA
52.54B57.88B64.47B43.29B43.29B35.60B
Net Income Common Stockholders
-49.26B-44.27B8.80B38.96B9.03B-91.75B
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.37B47.56B53.93B43.14B31.23B34.74B
Total Assets
158.61B364.98B433.84B419.55B360.74B474.54B
Total Debt
15.83B135.16B138.69B119.36B116.85B205.56B
Net Debt
2.50B89.77B84.76B76.22B85.62B170.82B
Total Liabilities
60.18B217.55B232.31B226.35B208.27B318.62B
Stockholders Equity
95.88B143.00B196.90B188.62B146.49B150.98B
Cash FlowFree Cash Flow
13.11B7.31B18.45B17.16B17.72B-5.38B
Operating Cash Flow
42.30B37.38B49.18B40.30B34.09B29.76B
Investing Cash Flow
-29.44B-30.66B-28.23B-15.08B25.09B-38.55B
Financing Cash Flow
-15.99B-14.60B-12.57B-15.00B-58.31B25.08B

Sasol Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.23
Price Trends
50DMA
4.37
Negative
100DMA
4.70
Negative
200DMA
5.92
Negative
Market Momentum
MACD
-0.08
Negative
RSI
51.10
Neutral
STOCH
53.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSL, the sentiment is Negative. The current price of 3.23 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.37, and below the 200-day MA of 5.92, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 53.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSL.

Sasol Risk Analysis

Sasol disclosed 41 risk factors in its most recent earnings report. Sasol reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sasol Peers Comparison

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
COCOP
78
Outperform
$120.41B12.2016.16%3.28%-2.57%-14.01%
CVCVX
76
Outperform
$273.17B16.0611.28%4.23%-1.90%-14.56%
XOXOM
76
Outperform
$487.85B14.3514.38%3.45%1.86%-11.52%
OXOXY
72
Outperform
$46.23B20.128.88%2.05%-4.35%-37.69%
PSPSX
70
Outperform
$43.70B21.467.27%4.29%-2.81%-68.00%
SSSSL
57
Neutral
$2.30B-28.05%2.00%-4.31%-1421.83%
47
Neutral
$2.64B-3.21-21.68%3.30%4.19%-30.23%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSL
Sasol
3.23
-4.93
-60.42%
CVX
Chevron
143.28
-11.62
-7.50%
COP
Conocophillips
86.29
-43.47
-33.50%
XOM
Exxon Mobil
104.34
-13.07
-11.13%
OXY
Occidental Petroleum
40.54
-27.50
-40.42%
PSX
Phillips 66
98.81
-66.23
-40.13%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.