Axalta Coating Systems Ltd. (AXTA) vs Sasol Ltd. (SSL)

Axalta Coating Systems Ltd. and Sasol Ltd. are both Specialty Chemicals companies. Sasol Ltd. is the larger, with a market value of $9.6B against $7.8B — 1.2× the size. Sasol Ltd. trades at the lower P/E: 3.3× against 23.3×. Sasol Ltd. grew revenue faster over the last twelve months: 26.6% against 0.14%. Sasol Ltd. has the higher net margin (8.89% vs 6.46%) and the lower return on invested capital (0.00% vs 7.99%). Across the 19 metrics below, Sasol Ltd. leads on 10 and Axalta Coating Systems Ltd. on 9.

Valuation

Metric AXTA SSL Specialty Chemicals median
P/E 23.28 3.27 24.46
P/S 1.51 n/m 1.64
P/B 2.92 n/m 1.88
Price to free cash flow 15.68 n/m 19.15
EV/EBITDA 10.57 0.37 12.87
EV/Sales 1.96 0.11 1.88
Earnings yield 4.30% 30.61% 2.42%
Free cash flow yield 6.38% 0.00% 2.25%

Profitability

Metric AXTA SSL Specialty Chemicals median
Gross margin 33.58% 33.45% 27.84%
Operating margin 12.37% 0.00% 5.64%
Net margin 6.46% 8.89% 4.19%
Free cash flow margin 9.61% 0.00% 3.49%
Return on equity 13.38% 0.00% 2.34%
Return on assets 4.31% 0.00% 0.45%
Return on invested capital 7.99% 0.00% 3.21%

Growth

Metric AXTA SSL Specialty Chemicals median
Revenue growth (TTM) 0.14% 26.64% 6.39%
EPS growth (last fiscal year) (2.25%) 91.38% (9.77%)
Revenue growth, 5-year CAGR 6.48% 4.12% 6.33%
Net income growth, 5-year CAGR 25.46% 4.08% 0.00%

Health

Metric AXTA SSL Specialty Chemicals median
Debt to equity 1.12 0.65 0.59
Current ratio 1.53 1.79 2.28
Net debt to EBITDA 2.45 1.56 2.03

Dividend

Metric AXTA SSL Specialty Chemicals median
Dividend yield — 0.00% 1.80%
Payout ratio — — 0.40

Size

Metric AXTA SSL Specialty Chemicals median
Market cap 7.78b 9.63b 2.08b

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