Should I buy Sasol stock in 2025?

What is Sasol?

How much is the Sasol stock?

The price of Sasol stock is rising this week. As of now, Sasol is trading at 8,284 ZAR, reflecting a 1.82% gain over the past 24 hours and a 1.3% increase this week.

The stock beta of 0.70 indicates lower volatility than the overall market. With these figures, Sasol offers high income potential, though investors should take note of sector swings and ongoing restructuring.

Our complete analysis on the Sasol stock

After an exhaustive review of Sasol Limited’s most recent financial disclosures and a thorough assessment of its share price evolution over the past three years, our proprietary algorithms have synthesised a broad spectrum of primary indicators—incorporating fundamental metrics, technical signals, real-time trade data, and sector benchmarking. The convergence of these methodologies yields a robust analytical framework. So, why might Sasol stock once again become a strategic entry point into the Southern African tech-infused chemicals and energy sector heading into 2025?

Recent Performance and Market Context

Over the past year, Sasol (JSE: SOL) has experienced notable share price volatility, typical of a sector responding to dynamic macroeconomic and commodity-driven variables. As of 30 May 2025, Sasol trades at ZAR 8,284—registering an intraday gain of +1.82% and a weekly advance of +1.3%. This positive short-term move stands in contrast to the stock’s 6-month decline (-7.69%) and a steeper year-on-year pullback (-36.2%).

Rather than undermining sentiment, these corrective phases have recalibrated expectations and positioned Sasol for re-rating potential, especially following May’s resolution of protracted legal disputes with Transnet and the recent revision to a more disciplined, cash-flow-linked dividend policy. Furthermore, macro drivers are stabilising: the South African rand shows signs of resilience, and energy prices are rebounding, which bodes well for Sasol’s dual chemicals and fuels operations.

• Improving clarity on legacy litigation, thus lowering headline risk
• Continued progress in Sasol’s cost optimisation and capital discipline
• Growing demand for specialised chemical products, supporting margin stability
• Investor appetite for high-dividend-yielding stocks in a lower-rate environment

In a sector increasingly defined by its integration of technology and sustainable energy, Sasol’s diversified model stands out as especially relevant to forward-looking investors.

Technical Analysis

The technical landscape for Sasol reveals an encouraging basis for renewed interest.

• Momentum Oscillators: While the NYSE-traded line shows an overbought RSI (70.35), the JSE RSI registers a more neutral 51.29, hinting at a stabilisation phase and potential room for upward movement. MACD signals diverge but point to imminent inflection; the JSE MACD (-9.19) suggests the recent correction has been absorbed, while the 5-day to 200-day moving averages align in favour of a bullish bias.
• Moving Averages: Current closing price remains comfortably above the 5-, 20-, 50-, 100-, and 200-day moving averages—all issuing buy signals. The 100-day MA at ZAR 7,744 and 200-day MA at ZAR 7,121 provide deep technical support, reinforcing downside containment.
• Support & Resistance: The next crucial support lies at ZAR 8,130, with the first resistance at ZAR 8,370. The classic pivot level (ZAR 8,250) serves as a dynamic fulcrum—levels that, if breached, could catalyse both short-term swings and position building.

Short and medium-term trading structures thus seem to favour accumulation, with Sasol potentially establishing a new base following a capitulation phase.

Fundamental Analysis

Sasol’s fundamental picture is characterised by structural resilience and signs of tangible improvement:

• Revenue Growth & Profitability: FY2024 revenue of ZAR 275.1bn and a 6-month figure of ZAR 122.1bn highlight stable turnover, with EBITDA in line at ZAR 60.0bn for the full year and a projected ZAR 22–25bn for H1 2025. Notably, the most recent net profit (4.6bn ZAR) marks a striking turnaround from the prior year’s ZAR -53.9bn, underlining operational recovery.
• Valuation: The valuation case appears particularly attractive. With the stock trading at just 0.20x Price/Sales and 0.35x Price/Book, Sasol is priced materially below regional and global peers. The forward dividend yield—currently estimated at 14.91%—reinforces the risk–reward trade-off for income-oriented holders.
• Structural Strengths:
• Innovation: Sasol leads in Fischer-Tropsch process technology and is globally recognised in coal-to-liquids (CTL) and gas-to-liquids (GTL) solutions.
• Market Share: Long-standing leadership across Southern Africa’s chemicals and fuels chain, with expanding global reach (notably through strategic projects in Louisiana and optimisation of core South African assets).
• Brand & Legacy: A reputation for technical excellence and adaptive business transformation since 1950.

While some near-term pressure on EBITDA margins was evident (22.5% in 2024 vs. 25% prior), the ongoing strategic restructuring and cost-saving drive point to normalization ahead.

Volume and Liquidity

Liquidity and volume continue to reinforce investor confidence:

• Trading Volume: Daily average stands at an impressive 4.7 million shares—enabling institutional and retail investors alike to transact efficiently and without significant spread pressure.
• Market Float: With a public float of c. 570.2 million shares out of 643 million issued, Sasol offers free trading characteristics typical of highly dynamic, re-rateable stocks.

This robust market depth provides critical support for both price discovery and re-rating, and ensures that position entry and exit remain practical even for large-scale participants.

Catalysts and Positive Outlook

Several powerful catalysts have the potential to drive a renewed bullish cycle for Sasol:

• Legal and regulatory clarity: The settlement of disputes with Transnet removes a significant overhang, freeing up management attention for transformative projects.
• Renewable Energy Integration: Ongoing investment in renewable energy sources reinforces Sasol’s transition into sustainable techno-chemical production. This not only diversifies earnings but enhances ESG credentials—a growing investment driver globally.
• Cost Optimisation and Strategic Focus: The 2024–2025 operational streamlining, including asset optimisation and reduction in non-core exposure, underpins a leaner, more competitive business.
• Product Innovation: Expansion into higher-margin specialities (chemicals segment) aims to shield overall profitability from commodity price swings.
• Sectoral Tailwinds: Sasol’s hybrid positioning—embedded in both chemicals tech and energy—places it at the confluence of global megatrends: energy transition, African re-industrialisation, and commodity innovation.

Consensus analyst forecasts suggest meaningful upside, with risk-adjusted targets in the ZAR 10,000–11,000 range (+30%), and the revised dividend policy unlocks attractive capital return optionality, conditional on further deleveraging progress.

Investment Strategies

Sasol’s share price trajectory opens up interesting strategies across the time horizon spectrum:

• Short-Term Positioning: With the share rebounding from multi-year lows near ZAR 5,301 and currently testing support, tactical investors may find compelling entry points just above key technical levels (e.g., ZAR 8,130). Momentum indicators suggest room for short covering, swing trading, or covered call structures.
• Medium-Term Accumulation: Institutional and private investors might consider building exposure progressively; cost-averaging and capturing cyclically depressed valuations aligns with medium-term catalysts (renewed earnings, dividend visibility, margin recovery).
• Long-Term Outlook: For those seeking structural growth, Sasol’s asset base, technological edge, and evolving ESG profile provide the foundation for outperformance over market cycles. The ongoing strategic pivots—especially renewable energy integration and the Louisiana chemicals project—promise to unlock value as operational execution materialises.

Flexible position sizing around current support zones, and before the next meaningful catalyst (such as further earnings upgrades or evidence of debt reduction), appears well justified.

Is it the Right Time to Buy Sasol?

To summarise, Sasol’s current valuation, improving operational momentum, and strengthened strategic position create a context that seems to represent an excellent opportunity for investors to re-engage. The stock’s pronounced yield, favourable liquidity, and commitment to cost discipline are complemented by clear structural levers for recovery and growth. Recent technical and fundamental evidence underline that the risk–reward profile is increasingly stacked on the upside, particularly now that legacy litigation risk and capital allocation policies have been reset.

While a disciplined approach remains prudent amidst episodic sector volatility and ongoing macro recalibration, the convergence of positive signals across technical, fundamental, and strategic dimensions justifies renewed interest. As Sasol continues to drive efficiencies and capitalise on energy transition megatrends, the stock may well be entering a new bullish phase.

For investors searching for a large-cap South African stock with distinctive upside potential, Sasol deserves close attention as it pivots towards a more sustainable, innovative, and profitable future. The groundwork appears firmly established for a sustained re-rating—positioning Sasol as one of 2025’s most intriguing opportunities in the resource-technology hybrid space.

How to buy Sasol stock in South Africa?

Buying Sasol (JSE:SOL) shares online is both straightforward and safe when you use a regulated South African broker. Today, individual investors can access Sasol stock with just a few clicks, choosing between two main approaches: spot (cash) buying, where you own the shares directly, or trading via Contracts for Difference (CFDs), which lets you speculate on Sasol’s price movements with leverage. Each method has its own features, risks and costs. For help finding the best provider for your needs, see our broker comparison further down this page.

Cash buying

When you buy Sasol shares in cash (also called spot purchasing), you become a direct owner of the company’s stock, with full rights to dividends and voting at shareholder meetings. Cash purchases go through a regulated broker, typically charging a fixed commission per order, often ranging from R75 to R150 on the JSE.

Example

Let’s say the Sasol share price is R8,284 and the average broker commission is R95 per trade. With a converted USD 1,000 (about R18,500 as of June 2025), you can buy:

• R18,500 - R95 = R18,405 available for shares
• R18,405 ÷ R8,284 ≈ 2.2 shares (rounded down to 2 shares)
• Total investment: 2 shares × R8,284 = R16,568 (remaining balance stays in your account)

✔️ Gain scenario:

If Sasol’s share price rises by 10%, each share would be worth R9,112.

• Your shares: 2 × R9,112 = R18,224
• Gross gain: R18,224 - R16,568 = R1,656 (+10% on initial amount in shares)

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Sasol’s share price movements without actually owning the shares. CFDs are available with South African and international brokers, and allow you to use leverage—magnifying both your potential gains and losses. Instead of a fixed commission, fees include a spread (the difference between buy and sell price) and overnight financing if you keep positions open beyond a day.

Example

You deposit $1,000 (about R18,500) and open a Sasol CFD position with 5x leverage.

• Market exposure: R18,500 × 5 = R92,500
• If Sasol rises 8%, your CFD position gains 40%:
• Gross gain: 40% × $1,000 = $400 (about R7,400) excluding fees (spreads and financing can reduce returns)

Note: Leverage boosts your exposure but also increases your risk of loss, so it’s essential to manage your position and understand the broker’s margin requirements.

Final advice

Before you start investing, it’s crucial to compare brokers: fees, commissions, platform reliability, and available features can vary significantly. Review the detailed broker comparator further down this page to make an informed choice that matches your investment goals and risk appetite. Whether you opt for direct ownership or the flexibility of CFDs depends on your financial objectives and preferred strategy—so take your time to evaluate which is right for you.

Our 7 tips for buying Sasol stock

The latest news about Sasol

Sasol’s share price rose 1,82% intraday and 1,3% over the past week, outpacing recent sector trends. This positive momentum reflects renewed investor confidence, supported by robust trading volumes on the JSE (averaging 4,7 million shares daily) and a stabilizing capital base, with market capitalization at 52,6 billion ZAR. The narrow trading range near a technical support at 8 130 ZAR, coupled with multiple short and long-term moving averages signaling “buy” on the JSE, highlights technical resilience and accumulating demand from South African institutional investors.

All five key moving averages signal a 'buy', indicating local technical strength and underlying support for the share. The 5, 20, 50, 100, and 200-day moving averages (all above 8 250 ZAR) together confirm ongoing buying interest, suggesting that, despite previous volatility, South African market participants are positioning for a potential medium-term recovery. The convergence of these technical supports lends further credibility to the view that Sasol’s local shares may continue their upward trend barring broader market shocks.

Sasol finalized legal settlements with Transnet in May 2025, reducing regulatory overhang for South African operations. With the resolution of pending disputes with Transnet, a key logistics and infrastructure partner, Sasol has meaningfully lowered legal risk and operational uncertainty. This settlement is a constructive development for South Africa’s investment environment, clearing a path for more predictable logistics costs and enhancing investor sentiment towards domestic operations and long-term capital expenditure planning.

The company revised its dividend policy this month, enhancing predictability and maintaining one of the highest yields on the JSE. Sasol’s new policy links payout (30% of free cash flow) to prudent leverage thresholds, conditional on net debt not exceeding $3 billion. This is highly relevant for local investors seeking yield, as the past 12-month dividend yield stands at an attractive 14,91%. The adjustment supports both disciplined balance sheet management and returns for shareholders in South Africa, providing visibility and aligning incentives for future profitability.

Sasol’s latest semi-annual financials show net profit recovery to 4,6 billion ZAR, demonstrating operational turnaround. This return to profit, after a previous period loss of 53,85 billion ZAR, underscores the efficacy of cost optimization and asset improvement strategies within its South African core business lines. The rebound, achieved in a challenging macro environment, signals that restructuring measures are beginning to deliver tangible value, lending greater confidence in continued improvement and supporting a neutral-to-slightly-bullish analyst sentiment among local market participants.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.