Sasol (SSL) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: 2%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -4.31%
• EPS Growth: -1421.83%
• Country: US
• Employees: 27,678
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): -4.04
• Shares Outstanding: 643,043,760
• 10 Day Avg. Volume: 1,201,986
• 30 Day Avg. Volume: 1,315,938
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.18
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.73
• Price Target Upside: 60.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Sasol's overall score is primarily constrained by its financial performance and valuation challenges. The company's declining revenues and profitability issues significantly impact its financial health, while the stock's weak technical indicators and negative P/E ratio further weigh down the score. Although cash flow resilience provides some support, the lack of positive earnings and dividend yield limits its appeal to investors.

Sasol Business Overview & Revenue Model

Company Description

Sasol 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 Money

Sasol 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
260.93B	275.11B	289.70B	272.75B	201.91B	190.37B
	Gross Profit
115.14B	121.71B	122.32B	135.43B	104.42B	89.77B
	EBIT
42.15B	48.11B	54.49B	50.34B	25.64B	13.32B
	EBITDA
52.54B	57.88B	64.47B	43.29B	43.29B	35.60B
	Net Income Common Stockholders
-49.26B	-44.27B	8.80B	38.96B	9.03B	-91.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.37B	47.56B	53.93B	43.14B	31.23B	34.74B
	Total Assets
158.61B	364.98B	433.84B	419.55B	360.74B	474.54B
	Total Debt
15.83B	135.16B	138.69B	119.36B	116.85B	205.56B
	Net Debt
2.50B	89.77B	84.76B	76.22B	85.62B	170.82B
	Total Liabilities
60.18B	217.55B	232.31B	226.35B	208.27B	318.62B
	Stockholders Equity
95.88B	143.00B	196.90B	188.62B	146.49B	150.98B
Cash Flow		Free Cash Flow
13.11B	7.31B	18.45B	17.16B	17.72B	-5.38B
	Operating Cash Flow
42.30B	37.38B	49.18B	40.30B	34.09B	29.76B
	Investing Cash Flow
-29.44B	-30.66B	-28.23B	-15.08B	25.09B	-38.55B
	Financing Cash Flow
-15.99B	-14.60B	-12.57B	-15.00B	-58.31B	25.08B

Sasol Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.56 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 4.04, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSL.

Sasol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOSP	67 Neutral	$2.26B	63.74	3.02%	1.73%	-5.31%	-74.42%
KWR	65 Neutral	$1.86B	16.24	8.49%	1.78%	-5.82%	3.75%
MTX	64 Neutral	$1.69B	11.37	-1.45%	0.71%	-3.82%	-126.04%
ASH	58 Neutral	$2.51B	21.03	0.18%	3.05%	-4.35%	-115.63%
OLN	58 Neutral	$2.53B	24.46	5.10%	3.60%	-4.29%	-74.85%
Sector *	49 Neutral	$1.95B	-1.60	-22.00%	3.78%	0.61%	-27.48%
SSL	47 Neutral	$2.24B	―	-28.05%	2.00%	-4.31%	-1421.83%