Sasol Limited (SOL.JO) stock analysis

In our weekly check, Sasol Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 7.

About Sasol Limited

Sasol Limited is a Basic Materials company (Chemicals) based in South Africa, listed on JNB as SOL.JO.

What our checks show for SOL.JO

Red flags

• The net margin fell by 9.8 points over 5 years, to 4.5%: the company keeps less of each sale as profit.
• The gross margin fell by 5.8 points, to 43.8%: costs are rising faster than prices.
• Revenue fell 2.1% a year over the last 3 years.
• The net margin is only 4.5%: little room if costs rise.
• A small company (market value $115 million): usually riskier and followed by fewer analysts.
• The price swings a lot: 62.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 97% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 0.1% a year of growth in revenue.
• Free cash flow is only 4.3% of revenue.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.67x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 29.2% a year over the next years.
• Analysts expect the net margin to improve by 5.3 points from today's 4.5%.
• Earnings per share grew 13.4% a year over the last 3 years.
• Net profit grew 11.4% a year over the last 3 years.
• Beta -0.32: the stock usually moves less than the market.

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Questions

What grade does Sasol Limited (SOL.JO) have?

In our weekly check, Sasol Limited is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SOL.JO stock?

This week's biggest flags for Sasol Limited: Margins falling, Gross margin falling, Weak revenue growth. In total 10 of 23 checks show a warning or a red flag.

What does Sasol Limited do?

Sasol Limited is a Basic Materials company (Chemicals) based in South Africa, listed on JNB as SOL.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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