Sasol Stock Price and Research (NYSE: SSL) – Investment U

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Sasol (NYSE: SSL) is a large cap company that operates within the chemicals industry. Its market cap is $23 billion today and the total one-year return is 23.32% for shareholders.

Sasol stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…

Earnings-per-Share (EPS) Growth: Sasol reported a recent EPS growth rate of 53.57%. That’s below the chemicals industry average of 69.59%. That’s not a good sign. We like to see companies that have higher earnings growth.

Price-to-Earnings (P/E): The average price-to-earnings ratio of the chemicals industry is 21.50. And Sasol’s ratio comes in at 13.88. It’s trading at a better value than many of its competitors.

Debt-to-EquityThe debt-to-equity ratio for Sasol stock is 38.74%. That’s below the chemicals industry average of 65.30%. That’s a good sign. Sasol’s debt levels are not out of control.

Free Cash Flow per Share GrowthSasol has increased its FCF per share over the last year relative to its competitors. That’s good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.

Profit MarginsThe profit margin of Sasol comes in at 13.37% today. And generally, the higher, the better. We also like to see this ratio above competitors. Sasol’s profit margin is below the chemicals average of 14.17%. So that’s a negative indicator for investors.

Return on EquityReturn on equity gives us a look at the amount of net income returned to shareholders. The ROE for Sasol is 9.73% and that’s below its industry average ROE of 22.65%.

Sasol stock passes three of our six key metrics today. That’s why our Investment U Stock Grader gives it a Hold.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

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