Solstice Advanced Materials Inc. (SOLS) vs Sasol Ltd. (SSL)

Solstice Advanced Materials Inc. and Sasol Ltd. are both Specialty Chemicals companies. Solstice Advanced Materials Inc. and Sasol Ltd. are of similar size ($10.1B and $9.5B). Sasol Ltd. trades at the lower P/E: 3.5× against 27.4×. Sasol Ltd. has the higher net margin (8.89% vs 5.13%) and the lower return on invested capital (0.00% vs 12.7%). Only Solstice Advanced Materials Inc. pays a dividend (0.38%). Across the 17 metrics below, Sasol Ltd. leads on 10 and Solstice Advanced Materials Inc. on 7.

Valuation

Metric SOLS SSL Specialty Chemicals median
P/E 27.38 3.51 25.37
P/S 2.30 n/m 1.46
P/B 5.93 n/m 1.84
Price to free cash flow 53.77 n/m 21.16
EV/EBITDA 13.26 0.37 12.82
EV/Sales 2.62 0.11 1.85
Earnings yield 3.65% 28.51% 2.11%
Free cash flow yield 1.86% 0.00% 2.16%

Profitability

Metric SOLS SSL Specialty Chemicals median
Gross margin 30.62% 33.45% 29.23%
Operating margin 14.36% 0.00% 3.63%
Net margin 5.13% 8.89% 2.89%
Free cash flow margin 4.27% 0.00% 3.76%
Return on equity 8.81% 0.00% 3.62%
Return on assets 7.10% 0.00% 0.35%
Return on invested capital 12.65% 0.00% 2.75%

Growth

Metric SOLS SSL Specialty Chemicals median
Revenue growth (TTM) — 26.64% 4.51%
EPS growth (last fiscal year) (60.91%) 91.38% (14.40%)
Revenue growth, 5-year CAGR — 4.12% 6.30%
Net income growth, 5-year CAGR — 4.08% 0.00%

Health

Metric SOLS SSL Specialty Chemicals median
Debt to equity 1.30 0.65 0.54
Current ratio 1.46 1.79 1.94
Net debt to EBITDA 1.85 1.56 2.03

Dividend

Metric SOLS SSL Specialty Chemicals median
Dividend yield 0.38% 0.00% 1.73%
Payout ratio 0.10 — 0.41

Size

Metric SOLS SSL Specialty Chemicals median
Market cap 9.52b 10.09b 2.41b

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