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Washington H. Soul Pattinson and Co.
(OTC:SOL)
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Rating:70Outperform
Price Target:
AU$51.00
▲(12.16% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by stable financial footing (notably low leverage) and a positive earnings-call backdrop highlighting NAV growth, liquidity, and dividend progression, reinforced by constructive technical trends. These positives are tempered by weaker operating fundamentals in the financial statements (sharp revenue and free cash flow decline, negative EBIT margin) despite strong reported profitability metrics.
Positive Factors
Low Leverage / Strong Balance Sheet
A very low debt-to-equity ratio gives SOL durable financial flexibility: it reduces refinancing and solvency risk, supports opportunistic countercyclical deployment, and preserves capacity to sustain dividends or fund acquisitions without forcing asset sales during market dislocations.
Negative Factors
Weak Free Cash Flow and Low Cash Conversion
A sharp fall in free cash flow growth and low cash conversion ratio mean reported profits are not fully translating into spendable cash. Over months this constrains organic funding for dividends, capital deployment, and increases reliance on portfolio realisations or external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
A very low debt-to-equity ratio gives SOL durable financial flexibility: it reduces refinancing and solvency risk, supports opportunistic countercyclical deployment, and preserves capacity to sustain dividends or fund acquisitions without forcing asset sales during market dislocations.
Read all positive factors
Washington H. Soul Pattinson and Co. (SOL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$17.66B
Dividend Yield2.3%
Average Volume (3M)538.59K
Price to Earnings (P/E)7.2
Beta (1Y)0.64
Revenue Growth49.44%
EPS Growth315.41%
CountryAU
Employees56
SectorFinancial
Sector Strength70
IndustryConglomerates
Share Statistics
EPS (TTM)6.43
Shares Outstanding379,919,680
10 Day Avg. Volume499,674
30 Day Avg. Volume538,585
Financial Highlights & Ratios
PEG Ratio-1.28
Price to Book (P/B)1.41
Price to Sales (P/S)21.60
P/FCF Ratio64.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.64
Revenue Forecast (FY)AU$600.00M
Washington H. Soul Pattinson and Co. Business Overview & Revenue Model
Company Description
Operating from its Sydney, Australia headquarters, Washington H. Soul Pattinson and Company Limited functions as an investment firm, allocating capital across a diverse spectrum of sectors and asset classes within the country. Its operations are s...
How the Company Makes Money
SOL makes money primarily through returns generated by its investment portfolio and operating subsidiaries: (1) Dividend and distribution income: SOL receives dividends from its listed equity investments and distributions from relevant investment ...
Washington H. Soul Pattinson and Co. Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 24, 2026
Earnings Call Sentiment Positive
The call presented multiple strong financial and portfolio metrics: NAV and net cash flow growth, dividend increase, ample liquidity (cash and undrawn facilities), and pronounced outperformance in emerging companies and overall portfolio returns. Management also emphasized active rebalancing (over $4.3B of transactions), structural advantages (permanent capital, unconstrained mandate), and a strengthened balance sheet following the Brickworks merger. Key challenges were primarily execution and cyclical or market‑timing related: statutory NPAT was distorted by one‑off merger accounting items, listed company cash flow declined due to portfolio reclassification, credit deployment was momentarily constrained by repayments, and certain portfolio segments (building products) face cyclical softness. Geopolitical and private credit market risks were acknowledged but framed as manageable given the firm's defensive positioning and liquidity. On balance, the positive operational and financial developments, plus strong liquidity and long‑term track record, outweigh the manageable lowlights.Positive Updates
Net Asset Value Growth and Market Outperformance
Total portfolio NAV of $13.8 billion, up $1.8 billion on the prior corresponding period. Portfolio returned 9.7% per share for the half and outperformed the ASX 200 Index by 6.6% for the period; 12-month trailing return (adjusted for dividends) was ~14.3%.
Negative Updates
Statutory NPAT Distorted by Large Non‑Recurring Items
Reported statutory NPAT of $2.3 billion is materially influenced by ~ $2 billion of non‑recurring items related to the Brickworks merger and tax cost base reset (one-off accounting gains and unrealized trading gains). Underlying (regular) NPAT is ~ $300 million, up nearly 7%, which may cause confusion if investors focus on statutory figures.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Asset Value Growth and Market Outperformance
Total portfolio NAV of $13.8 billion, up $1.8 billion on the prior corresponding period. Portfolio returned 9.7% per share for the half and outperformed the ASX 200 Index by 6.6% for the period; 12-month trailing return (adjusted for dividends) was ~14.3%.
Read all positive updates
Company Guidance
Management's guidance was to prioritize liquidity, repositioning and opportunistic, disciplined deployment into dislocations, supported by a $13.8bn portfolio (NAV up $1.8bn) and available liquidity of ~$472m cash plus ~$1.2bn of undrawn debt; they reiterated using permanent capital and an unconstrained mandate to act countercyclically. Key metrics underpinning that guidance: net cash flow from investments of $334m (up 15.4% YoY; $0.89ps vs $0.68ps in 1H23; ~9% 3‑yr CAGR) which supports a fully‑franked interim dividend of $0.48ps (up 9.1%; 28th consecutive increase), underlying NPAT of ~ $300m (up ~7%) and statutory NPAT of $2.3bn (with ~ $2bn non‑recurring items). They reported ~$4.3bn of transaction activity in the half (≈$2.1bn new investments — $1.0bn emerging, $0.5bn large‑cap, $0.4bn credit, ~$0.1bn private companies), portfolio mix of listed 32% / emerging 21% / credit 12% (NAV $1.6bn, +36.5%) / private companies 11% (NAV $1.6bn, +49%) / real assets 22%, international exposure 18%, and a franking credit balance of >$1.1bn; incremental offshore deployment was described as deliberate (c. $500m p.a. pacing).Washington H. Soul Pattinson and Co. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
70
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.23B | 613.40M | 557.60M | 362.90M | 2.56B | 1.07B |
| Gross Profit | 580.30M | 157.30M | 154.60M | 108.37M | 1.53B | 535.38M |
| EBITDA | 1.74B | 574.20M | 568.40M | 237.82M | 1.25B | 471.69M |
| Net Income | 2.34B | 364.20M | 498.80M | 690.72M | -12.94M | 273.20M |
Balance Sheet | ||||||
| Total Assets | 15.13B | 11.18B | 10.40B | 9.80B | 9.71B | 7.64B |
| Cash, Cash Equivalents and Short-Term Investments | 2.16B | 1.16B | 743.50M | 1.33B | 1.08B | 1.01B |
| Total Debt | 1.28B | 1.01B | 765.90M | 436.94M | 547.90M | 1.17B |
| Total Liabilities | 1.77B | 1.77B | 1.40B | 1.06B | 1.25B | 2.48B |
| Stockholders Equity | 13.35B | 9.41B | 8.99B | 8.72B | 8.45B | 4.09B |
Cash Flow | ||||||
| Free Cash Flow | -593.00M | 205.80M | 255.70M | 596.24M | 1.01B | 333.16M |
| Operating Cash Flow | -482.50M | 328.40M | 429.30M | 773.54M | 1.19B | 514.72M |
| Investing Cash Flow | 1.01B | -467.10M | -301.80M | -454.80M | -485.72M | -413.71M |
| Financing Cash Flow | -277.90M | 115.90M | -178.20M | -513.51M | -814.52M | 162.93M |
Washington H. Soul Pattinson and Co. Technical Analysis
Positive
45.47
Price Trends
45.17
Positive
43.65
Positive
40.34
Positive
Market Momentum
0.47
Positive
57.17
Neutral
64.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOL, the sentiment is Positive. The current price of 45.47 is below the 20-day moving average (MA) of 46.16, above the 50-day MA of 45.17, and above the 200-day MA of 40.34, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 64.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SOL.
Washington H. Soul Pattinson and Co. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$17.66B | 7.24 | 20.57% | 2.35% | 49.44% | 315.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | AU$6.27B | 9.94 | 11.25% | 1.28% | -13.80% | 268.90% | |
63 Neutral | AU$7.63B | 17.52 | 4.93% | 2.99% | -13.48% | -63.82% | |
59 Neutral | AU$4.51B | 29.01 | 5.87% | 3.72% | -20.55% | -72.75% | |
58 Neutral | AU$2.33B | -33.99 | -2.82% | 4.10% | -19.76% | -125.65% | |
44 Neutral | AU$268.23M | -0.28 | -98.22% | ― | -7.35% | -115.78% |
* Financial Sector Average
AU:SOL
Washington H. Soul Pattinson and Co.
46.53
5.00
12.03%
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AU:CRN
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Washington H. Soul Pattinson and Co. Corporate Events
Soul Patts Refreshes Board, Appoints Anne Loveridge as Audit Chair
Jul 22, 2026
Washington H. Soul Pattinson and Company Limited has strengthened its board with the appointment of Anne Loveridge as a non-executive director, effective 1 October 2026. Loveridge brings more than three decades of financial services experience, in...
Soul Patts to unlock $1.89bn from Brickworks industrial property sale
Jun 17, 2026
Washington H. Soul Pattinson has agreed to sell Brickworks’ interests in a portfolio of Industrial Joint Venture Trust properties to Goodman Australia Industrial Partnership and Goodman Group for net proceeds of $1.89 billion, in line with v...
State Street Group Ceases to Be Substantial Holder in Washington H. Soul Pattinson
May 8, 2026
State Street Corporation and several of its asset management subsidiaries have lodged a notice stating they have ceased to be a substantial holder in Washington H. Soul Pattinson and Company Limited as of 6 May 2026. The filing details the entitie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.