Sasol Ltd (SSL)
NYSE:SSL
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Sasol
(NYSE:SSL)
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Rating:62Neutral
Price Target:
$12.50
▲(91.72% Upside)
Action:ReiteratedDate:03/17/26
The score is driven primarily by mixed financial performance (improving leverage but inconsistent profitability and pressured margins) and improving but still challenged earnings-call fundamentals (better cash discipline and operations offset by impairments and macro headwinds). Technicals are supportive but very overbought, while valuation is a notable drag due to the high P/E and no dividend support.
Positive Factors
Free cash flow recovery
H1 positive free cash flow and a >100% improvement versus prior period show durable improvement in cash conversion. Sustained FCF supports deleveraging, funds necessary maintenance and growth capex, and increases resilience to commodity cycles over the next 2–6 months.
Negative Factors
Large impairments
Significant non‑cash impairments reflect reduced recoverable values and weaker long‑term asset economics. These write‑downs weaken equity cushions, constrain capital allocation flexibility, and signal structural challenges in some growth projects over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
H1 positive free cash flow and a >100% improvement versus prior period show durable improvement in cash conversion. Sustained FCF supports deleveraging, funds necessary maintenance and growth capex, and increases resilience to commodity cycles over the next 2–6 months.
Read all positive factors
Sasol (SSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.71B
Dividend YieldN/A
Average Volume (3M)3.00M
Price to Earnings (P/E)76.2
Beta (1Y)0.48
Revenue Growth-6.73%
EPS GrowthN/A
CountryUS
Employees27,678
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.58
Shares Outstanding644,261,660
10 Day Avg. Volume2,420,264
30 Day Avg. Volume3,004,567
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 Cap28.22
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit3.25
Enterprise Value/Ebitda5.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.55
Revenue Forecast (FY)$15.00B
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 off...
How the Company Makes Money
Sasol primarily makes money by converting low-cost or strategically sourced feedstocks (notably coal and natural gas, where available) into higher-value fuels and chemical products, and selling those outputs to industrial customers, wholesalers/re...
Sasol Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and financial progress against meaningful macro and asset-specific headwinds. Management reported tangible delivery on controllable levers (positive free cash flow, lower cash fixed costs, CapEx discipline, Secunda production improvement, successful destoning plant start-up, hedging and liquidity) and meaningful progress on the Grow & Transform agenda (renewables, offsets, SAF grant). Offsetting these positives are sizable impairments, a large reduction in EBIT driven by non-cash remeasurements, deferred gas monetization and continued weak chemical market conditions. Overall, the company is demonstrating disciplined execution and improving resilience, but significant near-term challenges and impairments temper the outlook.Positive Updates
Positive free cash flow and improved cash generation
Generated positive free cash flow in H1 FY26 for the first time in four years with a >100% improvement versus prior period; free cash flow generation cited as a key success of execution of cash levers.
Negative Updates
Group earnings pressure and lower adjusted EBITDA
Group adjusted EBITDA was lower year-on-year due to weaker macro conditions and softer chemical pricing; gross margin declined 6% YoY and overall earnings were impacted by commodity and FX dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Positive free cash flow and improved cash generation
Generated positive free cash flow in H1 FY26 for the first time in four years with a >100% improvement versus prior period; free cash flow generation cited as a key success of execution of cash levers.
Read all positive updates
Company Guidance
The company reiterated disciplined financial guidance and targets for FY‑26 and beyond: H1 delivered positive free cash flow (first time in 4 years, >100% improvement) and 3% higher sales volumes while gross margin fell 6% and EBIT declined 52% (driven in part by ZAR 7.8bn impairments, including ZAR 3.0bn at Secunda and ZAR 3.9bn on the Mozambique/PSA). Net debt ended at USD 3.8bn with a year‑end target below USD 3.7bn (CMD net‑debt/dividend trigger of USD 3.0bn expected around FY‑28 under current macro assumptions); liquidity headroom remains >USD 4bn and gross debt is 9% lower YoY. Capital guidance was reduced by ZAR 2bn to ZAR 22–24bn for FY‑26 (H1 CapEx was 43% lower YoY); cash fixed costs were cut ~2% group‑wide (Chemicals cash fixed costs down 6% YoY, 10% when FX‑normalised) and Sasol aims to keep cash fixed cost increases below inflation and net working capital between 15.5–16.5%. Hedging is in place (H2 oil hedge cover ~55–60% with an average floor ≈$59/bbl; 25–30% of rand‑USD exposure hedged via zero‑cost collars ~ZAR18–22) and International Chemicals guidance was revised to roughly USD 450m adjusted EBITDA for FY‑26 (margin 8–10%) with a FY‑28 EBITDA ambition of USD 750–850m.Sasol Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 243.58B | 249.10B | 275.11B | 289.70B | 272.75B | 201.91B |
| Gross Profit | 66.82B | 105.95B | 121.71B | 122.32B | 135.43B | 104.42B |
| EBITDA | 40.71B | 35.62B | 57.88B | 64.47B | 43.29B | 43.29B |
| Net Income | 2.40B | 6.77B | -44.27B | 8.80B | 38.96B | 9.03B |
Balance Sheet | ||||||
| Total Assets | 339.37B | 359.56B | 364.98B | 433.84B | 419.55B | 360.74B |
| Cash, Cash Equivalents and Short-Term Investments | 39.96B | 46.66B | 47.56B | 53.93B | 43.14B | 31.23B |
| Total Debt | 125.17B | 120.67B | 135.16B | 138.69B | 119.36B | 116.85B |
| Total Liabilities | 182.83B | 201.94B | 217.55B | 232.31B | 226.35B | 208.27B |
| Stockholders Equity | 151.15B | 152.43B | 143.00B | 196.90B | 188.62B | 146.49B |
Cash Flow | ||||||
| Free Cash Flow | 14.69B | 12.89B | 7.31B | 18.45B | 17.16B | 17.72B |
| Operating Cash Flow | 33.48B | 38.31B | 37.38B | 49.18B | 40.30B | 34.09B |
| Investing Cash Flow | -18.81B | -25.89B | -30.66B | -28.23B | -15.08B | 25.09B |
| Financing Cash Flow | -15.92B | -16.61B | -14.60B | -12.57B | -15.00B | -58.31B |
Sasol Technical Analysis
Positive
6.52
Price Trends
9.74
Positive
8.16
Positive
7.01
Positive
Market Momentum
0.91
Positive
58.75
Neutral
58.63
Neutral
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 6.52 is below the 20-day moving average (MA) of 12.26, below the 50-day MA of 9.74, and below the 200-day MA of 7.01, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 58.63 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.47B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
68 Neutral | $24.69B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
62 Neutral | $7.71B | 76.21 | 1.59% | ― | -6.73% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $15.45B | -6.32 | -15.50% | 2.88% | -5.32% | -1108.29% | |
59 Neutral | $23.91B | ― | -6.63% | 12.78% | -19.65% | -157.13% | |
57 Neutral | $20.91B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% |
* Basic Materials Sector Average
SSL
Sasol
12.46
9.21
283.38%
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EMN
Eastman Chemical
74.27
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LYB
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74.22
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35.54%
PPG
PPG Industries
110.47
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9.96%
WLK
Westlake Corporation
120.81
29.55
32.38%
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.