Sasol (SSL) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: 2%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -4.31%
• EPS Growth: -1421.83%
• Country: US
• Employees: 27,678
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): -4.04
• Shares Outstanding: 643,043,760
• 10 Day Avg. Volume: 756,992
• 30 Day Avg. Volume: 1,281,459
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: 66.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Sasol's overall score is primarily constrained by its financial performance and valuation challenges. The company's declining revenues and profitability issues significantly impact its financial health, while the stock's weak technical indicators and negative P/E ratio further weigh down the score. Although cash flow resilience provides some support, the lack of positive earnings and dividend yield limits its appeal to investors.

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 energy and chemical products. Its revenue streams are diversified across its main segments. In the Energy sector, Sasol generates income from the sale of synthetic fuels, which are produced from coal and natural gas. This includes petrol, diesel, and jet fuel. The company also benefits from its gas operations, including the distribution of natural gas. In the Chemicals segment, Sasol earns revenue by producing and selling a wide range of chemical products such as polyethylene, polypropylene, and various solvents which are used in industries ranging from packaging to personal care. The company also engages in partnerships and joint ventures that enhance its production capabilities and market reach. Additionally, Sasol generates revenue from its renewable energy projects and the production of low-carbon electricity. Fluctuations in global commodity prices, exchange rates, and regulatory changes are significant factors influencing Sasol's earnings.

Sasol Financial Statement Overview

Summary

Sasol's financial statements reflect a challenging environment, marked by declining revenues and profitability issues. While operational efficiency remains respectable, the company faces financial stability concerns 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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
275.11B	289.70B	272.75B	201.91B	190.37B
	Gross Profit
121.71B	122.32B	135.43B	104.42B	89.77B
	EBIT
48.11B	54.49B	50.34B	25.64B	13.32B
	EBITDA
57.88B	64.47B	43.29B	43.29B	35.60B
	Net Income Common Stockholders
-44.27B	8.80B	38.96B	9.03B	-91.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.56B	53.93B	43.14B	31.23B	34.74B
	Total Assets
364.98B	433.84B	419.55B	360.74B	474.54B
	Total Debt
135.16B	138.69B	119.36B	116.85B	205.56B
	Net Debt
89.77B	84.76B	76.22B	85.62B	170.82B
	Total Liabilities
217.55B	232.31B	226.35B	208.27B	318.62B
	Stockholders Equity
143.00B	196.90B	188.62B	146.49B	150.98B
Cash Flow		Free Cash Flow
7.31B	18.45B	17.16B	17.72B	-5.38B
	Operating Cash Flow
37.38B	49.18B	40.30B	34.09B	29.76B
	Investing Cash Flow
-30.66B	-28.23B	-15.08B	25.09B	-38.55B
	Financing Cash Flow
-14.60B	-12.57B	-15.00B	-58.31B	25.08B

Sasol Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.45 is above the 20-day moving average (MA) of 3.43, below the 50-day MA of 3.96, and below the 200-day MA of 5.54, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSL.

Sasol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOSP	67 Neutral	$2.26B	63.52	3.02%	1.73%	-5.31%	-74.42%
KWR	65 Neutral	$1.87B	16.29	8.49%	1.77%	-5.82%	3.75%
MTX	64 Neutral	$1.67B	11.37	-1.45%	0.81%	-3.82%	-126.04%
OLN	58 Neutral	$2.49B	23.82	5.10%	3.70%	-4.29%	-74.85%
Sector *	49 Neutral	$1.93B	-1.47	-21.02%	3.74%	0.80%	-29.57%
SSL	47 Neutral	$2.20B	―	-28.05%	2.00%	-4.31%	-1421.83%
ASH	45 Neutral	$2.57B	21.03	0.18%	2.98%	-4.35%	-115.63%