Sasol Limited
Sasol Limited Fundamental Analysis
Sasol Limited (SASOF) shows weak financial fundamentals with a PE ratio of 44.71, profit margin of 0.97%, and ROE of 1.59%. The company generates $241.6B in annual revenue with weak year-over-year growth of -9.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SASOF's fundamental strength across five key dimensions:
Efficiency Score
WeakSASOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSASOF shows balanced valuation metrics.
Growth Score
WeakSASOF faces weak or negative growth trends.
Financial Health Score
ExcellentSASOF maintains a strong and stable balance sheet.
Profitability Score
ModerateSASOF maintains healthy but balanced margins.
Key Financial Metrics
Is SASOF Expensive or Cheap?
P/E Ratio
SASOF trades at 44.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SASOF's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Sasol Limited at 0.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.32 times EBITDA. This is generally considered low.
How Well Does SASOF Make Money?
Net Profit Margin
For every $100 in sales, Sasol Limited keeps $0.97 as profit after all expenses.
Operating Margin
Core operations generate 17.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.59 in profit for every $100 of shareholder equity.
ROA
Sasol Limited generates $0.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sasol Limited produces operating cash flow of $32.92B, showing steady but balanced cash generation.
Free Cash Flow
Sasol Limited produces free cash flow of $14.31B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $22.68 in free cash annually.
FCF Yield
SASOF converts 14.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How SASOF Stacks Against Its Sector Peers
| Metric | SASOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.71 | 24.91 | Worse (Expensive) |
| ROE | 1.59% | 840.00% | Weak |
| Net Margin | 0.97% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.83 | 0.55 | Weak (High Leverage) |
| Current Ratio | 1.66 | 4.94 | Neutral |
| ROA | 0.71% | -4176.00% (disorted) | Weak |
SASOF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sasol Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.69%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
107.14%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
24.62%
Industry Style: Cyclical, Commodity, Value
High Growth