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Sasol Limited

SSL
37
Chemicals - Specialty · Basic Materials
Price
$11.37
+0.47 (+4.31%)
Market Cap
$7.29B
Exchange
New York Stock Exchange
Winston Score
37
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+2.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 627.8M (2021) → 640.7M (2025)

Sasol Limited is a South African energy and chemicals company that turns coal and natural gas into fuels, plastics, and specialty chemicals. Its main products include liquid fuels, fertilizers, solvents, and industrial chemicals sold to manufacturers, farmers, and energy companies. Sasol is one of the few companies in the world that uses a process called coal-to-liquids technology at commercial scale, which it has developed and refined over decades.

Sasol earns money by selling these fuels and chemicals, mostly through long-term supply contracts and direct industrial sales. It operates primarily in South Africa, with additional chemical operations in the United States and Europe, and generates roughly $12–14 billion in annual revenue. Its proprietary coal-to-liquids technology gives it a unique competitive position, but the business faces real risk from volatile oil and chemical prices, high energy costs, and growing pressure to reduce carbon emissions from its coal-heavy production process.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-8.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+103.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

9.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$63.4B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Sasol Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
29.4%
Modest — 29.4% gross margin
Operating Margin
19.5%
Healthy — 19.5% operating margin
ROCE
9.7%
Below par — 9.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
-12.5%
Shrinking sales (-12.5% YoY)
EPS YoY
-213.9%
Earnings shrinking (-213.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
5.5%
Thin free cash flow (5.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.68
Moderate — manageable debt (0.68)
Interest Cover
5.44x
Adequate interest coverage (5.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
47.7x
Expensive — P/E 47.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+47.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (47.7 → 0.2)

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Dividends

Not applicable for this business.
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