Sasol (SSL) AI Stock Analysis

• Market Cap: $4.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.68
• Revenue Growth: -6.73%
• EPS Growth: N/A
• Country: US
• Employees: 27,678
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.41
• Shares Outstanding: 644,261,660
• 10 Day Avg. Volume: 1,289,741
• 30 Day Avg. Volume: 1,213,817
• PEG Ratio: -0.06
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 3.88
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.53
• Revenue Forecast (FY): $14.08B

• Rating: 69 Neutral
• Price Target: $7.00 ▲(31.33% Upside)

Sasol's stock score is driven by its improved leverage management and undervaluation, suggesting potential for growth. However, inconsistent profitability and operational challenges weigh on the overall outlook. Technical indicators show a short-term bullish trend, but mixed signals caution against over-optimism.

Sasol Business Overview & Revenue Model

Company Description

Sasol Limited (SSL) is an integrated energy and chemical company based in South Africa, primarily involved in the production and marketing of synthetic fuels, chemicals, and gas. The company operates in two main sectors: Energy and Chemicals, with a focus on converting natural resources, including coal and natural gas, into a variety of products, such as fuels, lubricants, and specialty chemicals. Sasol is recognized for its innovative technologies and extensive operational footprint, including facilities in South Africa and international ventures in North America and Europe.

How the Company Makes Money

Sasol generates revenue through multiple channels, primarily by producing and selling synthetic fuels derived from coal and natural gas, which are essential for transportation and industrial use. The company's chemicals segment also contributes significantly to its earnings, with a diverse portfolio of products such as polymers, solvents, and other specialty chemicals used in various industries. Sasol benefits from its integrated business model, which allows it to optimize its production processes and reduce costs. Key revenue streams include sales from synthetic fuels, chemical products, and gas supply agreements. Additionally, Sasol engages in strategic partnerships and joint ventures that enhance its operational capabilities and market reach, contributing to its overall profitability. Factors such as global oil prices, demand for chemical products, and sustainability initiatives also play a critical role in influencing the company's financial performance.

Sasol Financial Statement Overview

Summary

Sasol's financial performance shows mixed results. While leverage management has improved, profitability metrics are inconsistent, and cash flow generation needs strengthening. Revenue growth has been unstable, and operational efficiency is under pressure.

Income Statement

Sasol's income statement shows a mixed performance. The gross profit margin has been relatively stable, but the net profit margin has been volatile, with a significant loss in 2024. Revenue growth has been inconsistent, with a decline in 2025. The EBIT and EBITDA margins have decreased over the years, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved from 2020 to 2025, indicating better leverage management. However, the return on equity has been low, suggesting limited profitability on shareholders' investments. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis reveals challenges in free cash flow growth, with negative growth in recent years. The operating cash flow to net income ratio indicates decent cash generation relative to earnings, but the free cash flow to net income ratio suggests room for improvement in converting earnings to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	260.93B	249.10B	275.11B	289.70B	272.75B	201.91B
Gross Profit	115.14B	105.95B	121.71B	122.32B	135.43B	104.42B
EBITDA	52.54B	35.62B	57.88B	64.47B	43.29B	43.29B
Net Income	-49.26B	6.77B	-44.27B	8.80B	38.96B	9.03B
Balance Sheet
Total Assets	367.66B	359.56B	364.98B	433.84B	419.55B	360.74B
Cash, Cash Equivalents and Short-Term Investments	36.72B	46.66B	47.56B	53.93B	43.14B	31.23B
Total Debt	134.18B	120.67B	135.16B	138.69B	119.36B	116.85B
Total Liabilities	215.18B	201.94B	217.55B	232.31B	226.35B	208.27B
Stockholders Equity	148.11B	152.43B	143.00B	196.90B	188.62B	146.49B
Cash Flow
Free Cash Flow	13.11B	12.89B	7.31B	18.45B	17.16B	17.72B
Operating Cash Flow	42.30B	38.31B	37.38B	49.18B	40.30B	34.09B
Investing Cash Flow	-29.44B	-25.89B	-30.66B	-28.23B	-15.08B	25.09B
Financing Cash Flow	-15.99B	-16.61B	-14.60B	-12.57B	-15.00B	-58.31B

Sasol Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSL, the sentiment is Positive. The current price of 5.33 is below the 20-day moving average (MA) of 6.29, below the 50-day MA of 6.35, and above the 200-day MA of 5.05, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 87.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSL.

Sasol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSL	69 Neutral	$4.46B	11.84	4.56%	―	-6.73%	―
EMN	67 Neutral	$6.95B	10.16	12.24%	5.51%	-3.33%	-19.59%
PPG	67 Neutral	$21.88B	17.40	16.31%	2.83%	-12.98%	-11.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	60 Neutral	$12.98B	―	-0.21%	1.68%	-23.92%	90.47%
LYB	51 Neutral	$13.94B	―	-10.44%	11.96%	-19.65%	-157.13%
WLK	47 Neutral	$8.06B	―	-9.48%	3.36%	-5.32%	-1108.29%

Sasol Corporate Events

Sasol Ltd Earnings Call: Mixed Sentiment with Strategic Progress

The recent earnings call for Sasol Ltd presented a mixed sentiment, highlighting both achievements and challenges. On the positive side, the company showcased significant improvements in free cash flow, successful deleveraging, and progress in renewable energy initiatives. However, these accomplishments were tempered by a decline in EBITDA, a tragic fatality, and production shortfalls in Secunda, painting a balanced yet cautious outlook for the company.

Sasol Ltd Reports Strong Cash Flow Amid Challenging Year

Sasol Ltd is a global energy and chemicals company that integrates technologies and processes into world-scale operating facilities, focusing on sustainable and safe production of high-quality products. The latest earnings report highlights a significant increase in free cash flow by 75% to R12.6 billion, despite a challenging macroeconomic environment. Key financial metrics include a 9% decrease in turnover to R249 billion and a 14% decline in adjusted EBITDA to R51.8 billion. Notable impairments were recorded, but basic earnings per share increased by over 100% to R10.60. The company strengthened its balance sheet, reducing net debt by 13% to R65 billion. Sasol’s management remains focused on strategic initiatives to enhance long-term value, including emissions reduction commitments and improving operational efficiencies. Looking forward, Sasol aims to continue its transformation into a more sustainable and resilient organization, leveraging its strategic priorities to navigate future challenges.