SOL

SasolJSE:SOL Stock Report

Market Cap

R145.2b

7D

0.2%

1Y

85.5%

Updated

22 Sep, 2021

Data

Company Financials +
SOL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends0/6

SOL Overview

Sasol Limited operates as an integrated chemical and energy company in South Africa.

Share Price & News

How has Sasol's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOL is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SOL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

SOL

-5.6%

ZA Chemicals

-1.2%

ZA Market


1 Year Return

85.5%

SOL

70.3%

ZA Chemicals

18.9%

ZA Market

Return vs Industry: SOL exceeded the ZA Chemicals industry which returned 70.3% over the past year.

Return vs Market: SOL exceeded the ZA Market which returned 18.9% over the past year.


Shareholder returns

SOLIndustryMarket
7 Day0.2%-5.6%-1.2%
30 Day18.0%9.2%-2.9%
90 Day10.8%3.4%-2.9%
1 Year85.5%85.5%72.2%70.3%23.4%18.9%
3 Year-54.9%-55.5%-54.7%-56.5%17.6%-6.0%
5 Year-25.9%-31.1%-29.2%-37.3%25.7%-4.9%

Long-Term Price Volatility Vs. Market

How volatile is Sasol's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Sasol Fundamentals Summary

How do Sasol's earnings and revenue compare to its market cap?
SOL fundamental statistics
Market CapR145.20b
Earnings (TTM)R9.03b
Revenue (TTM)R201.91b

17.2x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOL income statement (TTM)
RevenueR201.91b
Cost of RevenueR97.49b
Gross ProfitR104.43b
ExpensesR95.39b
EarningsR9.03b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)14.57
Gross Margin51.72%
Net Profit Margin4.47%
Debt/Equity Ratio67.5%

How did SOL perform over the long term?

See historical performance and comparison

Valuation

Is Sasol undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOL (ZAR246.98) is trading below our estimate of fair value (ZAR325.28)

Significantly Below Fair Value: SOL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SOL is poor value based on its PE Ratio (17.2x) compared to the ZA Chemicals industry average (13.9x).

PE vs Market: SOL is poor value based on its PE Ratio (17.2x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: SOL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SOL is overvalued based on its PB Ratio (1.1x) compared to the ZA Chemicals industry average (0.9x).


Future Growth

How is Sasol forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOL's forecast earnings growth (22.6% per year) is above the savings rate (9.2%).

Earnings vs Market: SOL's earnings (22.6% per year) are forecast to grow faster than the ZA market (13.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOL's revenue (4.5% per year) is forecast to grow slower than the ZA market (6.3% per year).

High Growth Revenue: SOL's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOL's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Sasol performed over the past 5 years?

-63.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOL has a large one-off loss of ZAR23.2B impacting its June 30 2021 financial results.

Growing Profit Margin: SOL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SOL's earnings have declined by 63.3% per year over the past 5 years.

Accelerating Growth: SOL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SOL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (27%).


Return on Equity

High ROE: SOL's Return on Equity (6.9%) is considered low.


Financial Health

How is Sasol's financial position?


Financial Position Analysis

Short Term Liabilities: SOL's short term assets (ZAR105.2B) exceed its short term liabilities (ZAR57.6B).

Long Term Liabilities: SOL's short term assets (ZAR105.2B) do not cover its long term liabilities (ZAR150.7B).


Debt to Equity History and Analysis

Debt Level: SOL's debt to equity ratio (67.5%) is considered high.

Reducing Debt: SOL's debt to equity ratio has increased from 37.7% to 67.5% over the past 5 years.

Debt Coverage: SOL's debt is well covered by operating cash flow (33.1%).

Interest Coverage: SOL's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Dividend

What is Sasol current dividend yield, its reliability and sustainability?

6.03%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SOL is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOL's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Fleetwood Grobler (60 yo)

1.83yrs

Tenure

R32,183,000

Compensation

Mr. Fleetwood Rawstorne Grobler, B Eng (Mech) has been President, Chief Executive Officer and Executive Director at Sasol Limited since November 01, 2019. Mr. Grobler served as Executive Vice President of...


CEO Compensation Analysis

Compensation vs Market: Fleetwood's total compensation ($USD2.19M) is about average for companies of similar size in the ZA market ($USD2.58M).

Compensation vs Earnings: Fleetwood's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SOL's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: SOL's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sasol Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sasol Limited
  • Ticker: SOL
  • Exchange: JSE
  • Founded: 1950
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: R145.198b
  • Shares outstanding: 630.64m
  • Website: https://www.sasol.com

Number of Employees


Location

  • Sasol Limited
  • Sasol Place
  • 50 Katherine Street
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Biography

Sasol Limited operates as an integrated chemical and energy company in South Africa. The company operates through Mining, Exploration and Production International, Energy, Base Chemicals, and Performance C...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 17:04
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.