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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 26.73 (1.60% today). The market cap for Sasol Ltd. is 17696.06, and is in the sector Basic Materials, and Major Integrated Oil & Gas industry. The target price for Sasol Ltd. is 6.38. Currently Sasol Ltd. is trading with a P/E of 17.57, and a forward P/E of 7.66. Average volume for Sasol Ltd. is 304.45 and so far today it is 283600.

Performance in the last year for Sasol Ltd. has been -9.05%. For EPS growth, Sasol Ltd. has seen a growth of -55.50%, and is looking to grow in the next year to 50.69%. More long term stats show that EPS growth has been -8.00% 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 -15.30%, with EPS growth quarter over quarter at -63.70%. The 20-day simple moving average is -1.08%, with the 200-day simple moving average coming to -2.99%.

Since the IPO date for Sasol Ltd. on the 4/26/1982, Sasol Ltd. has seen performance year to date to be 1.04%. With Sasol Ltd. trading at 26.73, the dividend yield is 4.64%, and the EPS is 1.52.

So could Sasol Ltd., be undervalued? Well as said before P/E is 17.57. The PEG is 9.25, P/S is 1.46 and the P/B is at 1.12. The P/cash is 5.04, with P/free cash flow at *TBA.

Sasol Ltd. ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 2. This is with long term debt/equity at 0.39, and total debt/equity at 0.41.

In terms of margins, Sasol Ltd. has a gross margin of 58.80%, an operating margin of 13.70% and a profit margin of 7.60%.Payout ratio for Sasol Ltd. is 103.00%. Return on assets come to 3.80% with return on investment coming to 5.20%.

Insider ownership for Sasol Ltd., is at *TBA and institutional ownership comes to 4.70%. Outstanding shares are at 662.03. While shares float is 642.81. The float short is currently 0.05%, and short ratio is 1.04.

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.

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Stephen Butters

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