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Is this Large Market Cap Stock target price reasonable for Sasol Ltd. (NYSE:SSL)?

The company in question is, Sasol Ltd. (NYSE:SSL) currently with a stock price of 28.29 (2.11% today). The market cap for Sasol Ltd. is 18152.82, and is in the sector Basic Materials, and Major Integrated Oil & Gas industry. The target price for Sasol Ltd. is 32. Currently Sasol Ltd. is trading with a P/E of 12.96, and a forward P/E of 10.75. Average volume for Sasol Ltd. is 325.02 and so far today it is 194704.

Performance in the last year for Sasol Ltd. has been -7.79%. For EPS growth, Sasol Ltd. has seen a growth of 0.90%, and is looking to grow in the next year to 83.03%. More long term stats show that EPS growth has been 12.90% over the last five years and could be 1.90% for the next five years. Sasol Ltd. has seen sales growth quarter over quarter at -14.00%, with EPS growth quarter over quarter at -42.60%. The 20-day simple moving average is 3.66%, with the 200-day simple moving average coming to 1.53%.

Since the IPO date for Sasol Ltd. on the 4/26/1982, Sasol Ltd. has seen performance year to date to be 4.74%. With Sasol Ltd. trading at 28.29, the dividend yield is 4.47%, and the EPS is 2.14.

So could Sasol Ltd., be undervalued? Well as said before P/E is 12.96. The PEG is 6.82, P/S is 1.43 and the P/B is at 1.07. The P/cash is 3.95, with P/free cash flow at *TBA.

Sasol Ltd. ability to deal with debt shows that the current ratio is 2.9, and the quick ratio is 2.3. This is with long term debt/equity at 0.32, and total debt/equity at 0.33.

In terms of margins, Sasol Ltd. has a gross margin of 58.40%, an operating margin of 17.90% and a profit margin of 10.30%.Payout ratio for Sasol Ltd. is 70.50%. Return on assets come to 5.50% with return on investment coming to 12.80%.

Insider ownership for Sasol Ltd., is at *TBA and institutional ownership comes to 13.90%. Outstanding shares are at 655.1. While shares float is 633.99. The float short is currently 0.06%, and short ratio is 1.21.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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