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Sasol Ltd (SSL)
:SSL
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Sasol
(NYSE:SSL)
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Rating:63Neutral
Price Target:
$6.50
▲(21.95% Upside)
Sasol's overall stock score is driven by its financial performance challenges and bearish technical indicators. While valuation metrics suggest reasonable pricing, operational and profitability issues weigh on the stock's attractiveness. The mixed sentiment from the earnings call further reflects the company's ongoing challenges and achievements.
Sasol (SSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.49B
Dividend YieldN/A
Average Volume (3M)1.12M
Price to Earnings (P/E)9.2
Beta (1Y)0.58
Revenue Growth-6.73%
EPS GrowthN/A
CountryUS
Employees27,678
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.41
Shares Outstanding643,443,800
10 Day Avg. Volume1,027,048
30 Day Avg. Volume1,117,778
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.33
Price to Sales (P/S)0.20
P/FCF Ratio3.88
Enterprise Value/Market Cap2.10
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Sasol Business Overview & Revenue Model
Company DescriptionSasol 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 MoneySasol 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 Earnings Call Summary
Earnings Call Date:Aug 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with notable achievements in free cash flow improvement, deleveraging, and renewable energy progress. However, these were offset by challenges such as EBITDA decline, a tragic fatality, and production shortfalls in Secunda due to operational issues. The sentiment reflects a balanced outlook with clear areas of success and ongoing challenges in the operational environment.Q4-2025 Updates
Positive Updates
Improved Free Cash Flow
Free cash flow increased to almost ZAR 12.6 billion, a 75% improvement compared to the prior year.
Deleveraging Success
Net debt reduced to USD 3.7 billion, achieving the target of staying under USD 4 billion.
Renewable Energy Progress
Secured more than 900 megawatts of renewable energy in South Africa, supporting long-term decarbonization goals.
Safety Milestone
First fatality-free financial year for Sasol Mining, marking a significant safety achievement.
International Chemicals EBITDA Increase
Adjusted EBITDA for International Chemicals increased by more than $120 million despite market downturns.
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA for the period was down 14% to ZAR 52 billion due to lower production volumes and operational setbacks.
Tragic Fatality
Despite improvements, there was a tragic fatality in financial year '25, highlighting ongoing safety challenges.
Secunda Volume Shortfall
Secunda volumes ended marginally below target due to coal quality and gasifier availability challenges.
Chemical Market Downturn
Prolonged downturn in the chemical market impacting International Chemicals segment, though mitigated by internal measures.
Higher Effective Tax Rate
Effective tax rate increased to around 37%, impacted by deductions not permissible from a tax perspective.
Company Guidance
In the call, Sasol provided guidance on several key financial and operational metrics for the fiscal year 2025. The company reported an adjusted EBITDA of ZAR 52 billion, a decrease of 14% from the previous year, alongside an improved free cash flow generation of more than 70% compared to the prior year. Sasol also managed to reduce its net debt to $3.7 billion, achieving its target of staying under $4 billion. The Southern Africa value chain's breakeven price was $59 a barrel, supported by disciplined cost and capital management. International Chemicals saw an adjusted EBITDA increase of over $120 million, and the group achieved a record low net debt level since 2016, reducing it by 11%. Furthermore, Sasol's emissions reduction roadmap is on track, with over 900 megawatts in renewable energy secured. The company plans to meet its FY '26 breakeven target of $55 to $60 per barrel and is aiming for adjusted EBITDA between $450 million and $550 million for International Chemicals in FY '26. The organization has also invested ZAR 600 million in social programs, contributing ZAR 44 billion in taxes and ZAR 100 million in job creation and support for small businesses, demonstrating significant social and economic impact.Sasol Financial Statement Overview
Summary
Sasol's financial performance shows mixed results. The income statement reflects stable gross profit margins but volatile net profit margins, with a significant loss in 2024. Revenue growth has been inconsistent, and operational efficiency is under pressure. The balance sheet indicates improved leverage management but low return on equity. Cash flow analysis reveals challenges in free cash flow growth, though operating cash flow generation is decent.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Negative
5.33
Price Trends
6.31
Negative
5.64
Negative
4.92
Positive
Market Momentum
-0.23
Positive
36.70
Neutral
20.58
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 5.33 is below the 20-day moving average (MA) of 5.93, below the 50-day MA of 6.31, and above the 200-day MA of 4.92, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.58 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $7.14B | 8.73 | 14.52% | 5.42% | 1.60% | -3.97% | |
63 Neutral | $3.49B | 9.24 | 4.56% | ― | -6.73% | ― | |
63 Neutral | $23.56B | 18.51 | 16.88% | 2.69% | -10.59% | -7.79% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $10.75B | ― | -8.66% | 1.77% | -33.05% | -97.63% | |
52 Neutral | $9.86B | ― | -0.64% | 2.79% | -3.00% | -124.79% | |
48 Neutral | $14.54B | 59.31 | 1.08% | 11.99% | -14.12% | -89.22% |
* Basic Materials Sector Average
SSL
Sasol
5.52
-0.53
-8.76%
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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.