Sasol (SSL) AI Stock Analysis

• Market Cap: $3.09B
• Dividend Yield: 2%
• Average Volume (3M): 990.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -4.31%
• EPS Growth: -1421.83%
• Country: US
• Employees: 27,678
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 0.87
• Shares Outstanding: 643,043,760
• 10 Day Avg. Volume: 950,514
• 30 Day Avg. Volume: 990,311
• PEG Ratio: -0.23
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.53
• 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: 5.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $5.50 ▲(0.92%Upside)

The overall stock score is primarily influenced by financial performance challenges, with declining revenues and profitability. The technical analysis shows strong bullish momentum, but overbought conditions suggest caution. Valuation remains a significant concern due to negative earnings and lack of dividend yield.

Sasol Business Overview & Revenue Model

Company Description

Sasol Limited, together with its subsidiaries, operates as an integrated chemical and energy company in South Africa. The company operates through six segments: Mining, Gas, Fuels, Chemicals Africa, Chemicals America, and Chemicals Eurasia. It offers acetate, acrylate monomer, ammonia, carbon, chlor alkali, explosive, fertilizer, glycol ether, hydrocarbon blend, inorganic, ketone, mining, polymer, and wax chemicals, as well as lacquer thinners, light alcohols, and phenolics or cresylic acids. The company also markets and sells brick, electrical, engine, hand, non-ferrous, and window cleaners, as well as parts wash products and super soaps; degreasers; bitumen, fuel oils, lubricants, motor fuels, and gas-to-liquid fuels; and other fuels, such as illuminating paraffin, light cycle and distillate oils, light straight run fuels, and synthetic paraffinic kerosene. In addition, it wholesales diesel and petrol; operates coal mines; offers engineering services; and develops lower carbon solutions. Further, the company explores, develops, produces, markets, and distributes natural gas and related products through pipelines. It serves adhesive, agriculture and forestry, automotive and transportation, aviation, burner fuel, chemical, construction and material, corrosion protection, electrical and electronic, flavor and fragrance, furniture, health and medical, household and consumer goods, industrial product, lubricant, manufacturing, mining, packaging, paint and coating, personal care, pharmaceutical, plastic and polymer, publishing and ink, pulp and paper, rubber and tyre, specialty graphite, steel and foundry, textile and leather, water treatment, and other industries. Sasol Limited was founded in 1950 and is headquartered in Johannesburg, South Africa.

How the Company Makes Money

Sasol makes money primarily through the production and sale of liquid fuels, chemicals, and electricity. Its revenue streams are divided into several segments, including Energy, which focuses on the production and marketing of fuels and electricity; Chemicals Africa, which produces a range of chemical products for various industries; Chemicals America, which includes operations in the United States; and Chemicals Eurasia, which covers chemical operations in Europe and Asia. The company benefits from its proprietary technologies that convert coal and natural gas into higher-value products, allowing it to serve a diverse range of markets globally. Additionally, Sasol engages in strategic partnerships and joint ventures to enhance its production capabilities and market reach. Factors such as global oil prices, exchange rates, and regulatory environments significantly influence its earnings.

Sasol Financial Statement Overview

Summary

Sasol's financial statements reflect a challenging environment with declining revenues and profitability issues. Operational efficiency is respectable, but financial stability is a concern 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
36.72B	47.56B	53.93B	43.14B	31.23B	34.74B
	Total Assets
367.66B	364.98B	433.84B	419.55B	360.74B	474.54B
	Total Debt
134.18B	135.16B	138.69B	119.36B	116.85B	205.56B
	Net Debt
97.47B	89.77B	84.76B	76.22B	85.62B	170.82B
	Total Liabilities
215.18B	217.55B	232.31B	226.35B	208.27B	318.62B
	Stockholders Equity
148.11B	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: Positive
• Last Price: 5.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5.45 is above the 20-day moving average (MA) of 4.61, above the 50-day MA of 3.94, and above the 200-day MA of 5.05, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 77.03 is Negative, neither overbought nor oversold. The STOCH value of 82.34 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
KWR	71 Outperform	$2.03B	21.81	6.78%	1.69%	-5.72%	-19.82%
IOSP	63 Neutral	$2.12B	80.07	2.21%	1.98%	-7.91%	-81.73%
OLN	61 Neutral	$2.42B	40.16	2.94%	3.92%	-1.13%	-81.74%
MTX	60 Neutral	$1.78B	11.37	-1.45%	0.81%	-3.82%	-126.04%
SSL	55 Neutral	$3.09B	―	-28.05%	2.00%	-4.31%	-1421.83%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
ASH	48 Neutral	$2.36B	21.03	-3.02%	3.35%	-7.63%	-157.37%