SasolPerimeter Solutions

Sasol vs Perimeter Solutions

This page compares Sasol Ltd. and Perimeter Solutions SA, examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial ad...

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Investment Analysis

Pros

  • Sasol has demonstrated improved adjusted EBITDA in the second half of 2025 driven by higher Southern Africa sales volumes, a substantial legal settlement, and ongoing cost reductions.
  • The company's quick and cash ratios indicate solid short-term liquidity, supporting operational flexibility in volatile commodity markets.
  • Sasol benefits from exposure to both chemicals and energy markets, providing diversified revenue streams amid sector-specific cyclical pressures.

Considerations

  • Sasol reported significant impairments in 2025, particularly at key facilities like the Secunda refinery and Italian care chemicals unit, reflecting ongoing asset challenges.
  • The company remains sensitive to oil price volatility and realised losses on derivatives, which can pressure margins in weak commodity environments.
  • Sasol’s historical gearing remains elevated, and the inclusion of equity joint venture loans in net debt calculations may affect future financial flexibility.

Pros

  • Perimeter Solutions delivered strong recent earnings, with Q3 2025 EPS and revenue notably surpassing analyst expectations, signalling robust operational execution.
  • The company operates in niche markets such as fire safety and specialised lubricant additives, benefiting from recurring demand and limited direct competition.
  • Perimeter Solutions has demonstrated revenue growth across both fire safety and specialty products segments, supported by international expansion and product innovation.

Considerations

  • Perimeter Solutions trades at premium valuation multiples relative to sector peers, which may limit upside if growth moderates or sector sentiment weakens.
  • The company’s enterprise value has risen sharply compared to historical averages, introducing potential volatility if earnings growth fails to meet elevated expectations.
  • Perimeter Solutions’ performance is partly tied to government and municipal spending on fire safety, exposing it to budgetary cycles and public sector delays.

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