Sasol (SSL) AI Stock Analysis

• Market Cap: $4.54B
• Dividend Yield: 2%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.52
• Revenue Growth: -6.73%
• EPS Growth: N/A
• Country: US
• Employees: 27,678
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.41
• Shares Outstanding: 643,043,760
• 10 Day Avg. Volume: 1,754,461
• 30 Day Avg. Volume: 1,320,696
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $8.00
• Price Target Upside: 11.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $8.00 ▲(11.89% Upside)

Sasol's overall stock score of 72 reflects a company with strong technical momentum and reasonable valuation, offset by mixed financial performance and operational challenges. The earnings call highlighted significant achievements in cash flow and debt reduction, but also noted areas needing improvement, such as EBITDA growth and operational efficiency.

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 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 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	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

• Technical Analysis Sentiment: Positive
• Last Price: 7.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 7.15 is above the 20-day moving average (MA) of 6.32, above the 50-day MA of 5.55, and above the 200-day MA of 4.72, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 71.25 is Negative, neither overbought nor oversold. The STOCH value of 79.49 is Neutral, 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
SSL	72 Outperform	$4.54B	12.29	4.56%	2.00%	-6.73%	―
KWR	70 Neutral	$2.51B	21.71	-0.52%	1.34%	-3.09%	-106.46%
IOSP	63 Neutral	$2.13B	113.69	1.55%	1.90%	-5.45%	-87.13%
Sector *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%
MTX	61 Neutral	$2.01B	1,412.11	0.13%	0.69%	-3.93%	-97.39%
OLN	55 Neutral	$2.90B	41.89	-0.69%	3.20%	1.49%	-105.20%
ASH	49 Neutral	$2.51B	21.03	-34.43%	3.00%	-11.38%	-690.99%