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Sasol Ltd (SSL)
NYSE:SSL

Sasol (SSL) AI Stock Analysis

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SS

Sasol

(NYSE:SSL)

Rating:55Neutral
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 (SSL) vs. SPDR S&P 500 ETF (SPY)

Sasol Business Overview & Revenue Model

Company DescriptionSasol 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 MoneySasol 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
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
36.72B47.56B53.93B43.14B31.23B34.74B
Total Assets
367.66B364.98B433.84B419.55B360.74B474.54B
Total Debt
134.18B135.16B138.69B119.36B116.85B205.56B
Net Debt
97.47B89.77B84.76B76.22B85.62B170.82B
Total Liabilities
215.18B217.55B232.31B226.35B208.27B318.62B
Stockholders Equity
148.11B143.00B196.90B188.62B146.49B150.98B
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
Positive
Last Price5.45
Price Trends
50DMA
3.94
Positive
100DMA
4.18
Positive
200DMA
5.05
Positive
Market Momentum
MACD
0.31
Negative
RSI
77.03
Negative
STOCH
82.34
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 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KWKWR
71
Outperform
$2.03B21.816.78%1.69%-5.72%-19.82%
63
Neutral
$2.12B80.072.21%1.98%-7.91%-81.73%
OLOLN
61
Neutral
$2.42B40.162.94%3.92%-1.13%-81.74%
MTMTX
60
Neutral
$1.78B11.37-1.45%0.81%-3.82%-126.04%
SSSSL
55
Neutral
$3.09B-28.05%2.00%-4.31%-1421.83%
51
Neutral
$2.03B-1.27-21.09%3.98%2.91%-30.50%
ASASH
48
Neutral
$2.36B21.03-3.02%3.35%-7.63%-157.37%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSL
Sasol
5.45
-1.29
-19.14%
ASH
Ashland
49.59
-44.73
-47.42%
IOSP
Innospec
84.77
-37.01
-30.39%
MTX
Minerals Technologies
54.11
-29.76
-35.48%
OLN
Olin
20.38
-28.00
-57.88%
KWR
Quaker Chemical
114.95
-55.80
-32.68%
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.