Last Updated: 07 Nov 2024
Executive Summary
Sasol Ltd (SSL) is an integrated energy and chemical company with a market capitalization of $38.41 billion. The company has been facing challenges in recent years due to weak oil prices and operational issues. However, the company's fundamentals remain strong, and analysts are optimistic about its long-term prospects. The latest stock price is $5.97, which is below the analyst target price of $10.89.
Company Overview
Sasol Ltd is headquartered in Johannesburg, South Africa. The company has operations in over 30 countries and employs over 30,000 people. Sasol's core businesses include the production and sale of crude oil, natural gas, chemicals, and refined products. The company also has a significant renewable energy business.
Fundamental Analysis
Sasol's financial performance has been mixed in recent years. The company's revenue has declined in recent years due to weak oil prices. However, the company's cost-cutting measures have helped to improve its profitability. Sasol's EBITDA margin has improved from 13.1% in 2016 to 21.1% in 2022.
Sasol's balance sheet is strong. The company has a low level of debt and a high level of cash on hand. Sasol's book value is $225.06 per share.
Technical Analysis
Sasol's stock price has been in a downtrend since 2018. The stock price is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
Sasol's stock price is likely to remain volatile in the short term. The company's financial performance is expected to improve in the coming quarters, but the stock price could be weighed down by concerns about the global economy.
Long Term Outlook
Sasol's long-term outlook is positive. The company's fundamentals are strong, and the company is well-positioned to benefit from the growing demand for energy and chemicals. Sasol's stock price is currently trading at a discount to its fair value, and the stock is expected to appreciate in the long term.
Analyst Recommendations
Analysts are optimistic about Sasol's long-term prospects. The consensus analyst rating for Sasol is "buy." The analyst target price for Sasol is $10.89, which represents a potential upside of 83.6% from the current stock price.
