Sasol (JSE:SOL) Might Have The Makings Of A Multi-Bagger
Oct 25
South African (JSE) Materials Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies32
- 7D-4.2%
- 3M-14.2%
- 1Y-22.8%
- YTD-28.1%
Over the last 7 days, the Materials industry has dropped 4.2%, driven by a pullback from Sasol of 5.0%. Overall the industry is down 23% in 12 months. Looking forward, earnings are forecast to grow by 16% annually.
Sector Valuation and Performance
Has the South African Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R1.1t | R1.3t | R109.0b | 8.5x | 10x | 0.9x |
| Thu, 28 Sep 2023 | R1.2t | R1.3t | R111.4b | 9x | 11.1x | 0.9x |
| Sat, 26 Aug 2023 | R1.2t | R1.4t | R152.7b | 5.9x | 8.1x | 0.9x |
| Mon, 24 Jul 2023 | R1.4t | R1.4t | R214.5b | 5x | 6.6x | 1x |
| Wed, 21 Jun 2023 | R1.5t | R1.4t | R223.1b | 4.9x | 6.7x | 1x |
| Fri, 19 May 2023 | R1.6t | R1.4t | R234.0b | 5x | 6.8x | 1.1x |
| Sun, 16 Apr 2023 | R1.6t | R1.4t | R221.7b | 5.4x | 7.1x | 1.1x |
| Tue, 14 Mar 2023 | R1.5t | R1.4t | R220.0b | 5.5x | 6.7x | 1x |
| Thu, 09 Feb 2023 | R1.6t | R1.4t | R249.8b | 6x | 6.5x | 1.2x |
| Sat, 07 Jan 2023 | R1.7t | R1.4t | R248.5b | 6.8x | 7x | 1.2x |
| Mon, 05 Dec 2022 | R1.7t | R1.4t | R248.9b | 6.2x | 6.8x | 1.2x |
| Wed, 02 Nov 2022 | R1.5t | R1.4t | R251.5b | 6x | 5.9x | 1.1x |
| Fri, 30 Sep 2022 | R1.4t | R1.4t | R250.9b | 5.6x | 5.5x | 1x |
| Sun, 28 Aug 2022 | R1.5t | R1.4t | R255.1b | 6.3x | 5.9x | 1.1x |
| Tue, 26 Jul 2022 | R1.4t | R1.4t | R267.7b | 5.6x | 5.4x | 1x |
| Thu, 23 Jun 2022 | R1.6t | R1.4t | R267.9b | 5.2x | 5.8x | 1.2x |
| Sat, 21 May 2022 | R1.7t | R1.4t | R266.9b | 5.9x | 6.3x | 1.2x |
| Mon, 18 Apr 2022 | R2.0t | R1.3t | R261.4b | 7x | 7.6x | 1.5x |
| Wed, 16 Mar 2022 | R2.0t | R1.3t | R254.2b | 8.8x | 7.9x | 1.5x |
| Fri, 11 Feb 2022 | R1.9t | R1.3t | R284.8b | 7.4x | 6.5x | 1.4x |
| Sun, 09 Jan 2022 | R1.7t | R1.3t | R283.8b | 8.4x | 6x | 1.3x |
| Tue, 07 Dec 2021 | R1.7t | R1.3t | R282.8b | 8.1x | 6.1x | 1.3x |
| Thu, 04 Nov 2021 | R1.6t | R1.3t | R282.2b | 8.1x | 5.8x | 1.3x |
| Sat, 02 Oct 2021 | R1.5t | R1.3t | R273.8b | 7.4x | 5.3x | 1.1x |
| Mon, 30 Aug 2021 | R1.6t | R1.2t | R268.5b | 7x | 6x | 1.3x |
| Tue, 06 Jul 2021 | R1.6t | R1.2t | R268.5b | 6.6x | 6.1x | 1.3x |
| Fri, 09 Apr 2021 | R1.8t | R1.1t | R173.3b | 8.4x | 10.6x | 1.6x |
| Thu, 31 Dec 2020 | R1.5t | R1.0t | R74.3b | 8.8x | 20.2x | 1.5x |
Price to Earnings Ratio
56.2x
Current Industry PE
- Investors are relatively neutral on the South African Materials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 9.8x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.87x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 70% per year over the last three years.
- Revenues for these companies have grown 8.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Materials sector?
| ZA Market | -1.18% | |
| Materials | -4.19% | |
| Packaging | 0.12% | |
| Basic Materials | -1.39% | |
| Chemicals | -2.17% | |
| Metals and Mining | -4.60% | |
| Paper and Forestry Products | -6.25% | |
Industry PE
- Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings decline of 20% per year.
- In contrast, the Paper and Forestry Products industry is expected to see its earnings decline by 8.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| KIO Kumba Iron Ore | R497.25 | 2.5% +R4.0b | 43.7% | PE12.2x | |
| THA Tharisa | R14.20 | 3.0% +R123.0m | -31.3% | PE1.9x | |
| YRK York Timber Holdings | R1.85 | 6.9% +R55.7m | -28.8% | PS0.5x | |
| CPR Copper 360 | R4.05 | 1.5% +R37.8m | n/a | PS76.5x | |
| MPT Mpact | R28.00 | 0.4% +R14.7m | 0% | PE5.6x |