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Washington H. Soul Pattinson and Co.
(Sydney:SOL)
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Rating:71Outperform
Price Target:
AU$51.00
â–˛(13.59% Upside)
Action:Reiterated
Date:09/28/26
The score is driven primarily by mixed financial quality—strong balance-sheet strength but weakened cash generation and volatile, non-operating-driven profitability. Offsetting this, technicals are constructive and valuation is compelling on a low P/E with a reasonable yield. The latest earnings call adds support via positive guidance, liquidity strength and NAV/shareholder-return outperformance, tempered by noted operating and market risks.
Positive Factors
Brickworks merger strengthened scale and structure
The completed Brickworks merger materially changed SOL’s scale and corporate structure, while increasing liquidity and broadening ownership. These benefits can support more efficient capital allocation, improve portfolio flexibility, and strengthen the platform for long-term compounding.
Negative Factors
Latest cash generation weakened sharply
The reversal to negative operating and free cash flow weakens confidence in the conversion of reported earnings into usable cash. If sustained, it could constrain internally funded investment, dividends, or debt reduction and increase reliance on portfolio realizations.
Read all positive and negative factors
Positive Factors
Negative Factors
Brickworks merger strengthened scale and structure
The completed Brickworks merger materially changed SOL’s scale and corporate structure, while increasing liquidity and broadening ownership. These benefits can support more efficient capital allocation, improve portfolio flexibility, and strengthen the platform for long-term compounding.
Read all positive factors
Washington H. Soul Pattinson and Co. (SOL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$17.82B
Dividend Yield2.24%
Average Volume (3M)516.38K
Price to Earnings (P/E)7.8
Beta (1Y)0.63
Revenue Growth142.61%
EPS Growth445.96%
CountryAU
Employees53
SectorFinancial
Sector Strength70
IndustryFinancial - Conglomerates
Share Statistics
EPS (TTM)6.03
Shares Outstanding379,919,680
10 Day Avg. Volume708,370
30 Day Avg. Volume516,385
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.35
Price to Sales (P/S)11.52
P/FCF Ratio-85.99
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:Sep 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 24, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record transaction activity, substantial NAV and shareholder-return outperformance, 28 consecutive years of dividend growth, improved tax assets, strong liquidity and robust private credit and private company performance. The main negatives were lower operating NPAT, the Tuas regulatory impact, mixed emerging companies performance, constrained real assets returns and acknowledged broader private credit and market risks. Management remained confident, defensive and selective while emphasizing continued portfolio diversification and future deployment capacity.Positive Updates
Brickworks Merger Completed
Soul Patts completed the $15 billion merger with Brickworks, the largest transaction in its 123-year history. The merger simplified the structure, strengthened the balance sheet, increased free float and liquidity, and grew the shareholder base by 35% to 84,000.
Negative Updates
Operating NPAT Declined
Consolidated operating NPAT was $319 million in FY2026, down $36 million from the prior corresponding period, largely due to a lower profit contribution from the New Hope investment.
Read all updates
Q4-2026 Updates
Positive
Negative
Brickworks Merger Completed
Soul Patts completed the $15 billion merger with Brickworks, the largest transaction in its 123-year history. The merger simplified the structure, strengthened the balance sheet, increased free float and liquidity, and grew the shareholder base by 35% to 84,000.
Read all positive updates
Company Guidance
For FY ’27, Soul Patts said annualized Brickworks cost-out savings will flow through, private companies target returns are indicatively above 20% and credit target returns are above 10%, with credit targeting low double-digit returns; 8 offshore credit fund allocations are already committed, while $2 billion of global-manager commitments is expected to be drawn over the next 2 to 3 years, although it may not be the full $2 billion. The FY ’27 year is off to a strong start, with net asset value up 4.3% against a market that is negative 1.1%, a 5.4% outperformance, to 22 September. The current fixed income running yield is about 150 basis points above the RBA cash rate, with expectations of 2 or 3 rate rises imminently. Soul Patts said the payout ratio is dependent on market conditions, has ranged from sort of early 70% to up around 90% over the past 6 or 7 years, and it has no targets on offshore weighting; exposure will increase as commitments are drawn down, while new commitments will slow quite a bit.Washington H. Soul Pattinson and Co. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
83
Very Positive
Cash Flow
34
Negative
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.49B | 613.40M | 557.60M | 362.90M | 2.56B |
| Gross Profit | 470.00M | 157.30M | 154.60M | 108.37M | 1.53B |
| EBITDA | -19.00M | 574.20M | 568.40M | 237.82M | 1.25B |
| Net Income | 2.19B | 364.20M | 498.80M | 690.72M | -12.94M |
Balance Sheet | |||||
| Total Assets | 14.04B | 11.18B | 10.40B | 9.80B | 9.71B |
| Cash, Cash Equivalents and Short-Term Investments | 3.49B | 1.16B | 743.50M | 1.33B | 1.08B |
| Total Debt | 835.00M | 1.01B | 765.90M | 436.94M | 547.90M |
| Total Liabilities | 1.30B | 1.77B | 1.40B | 1.06B | 1.25B |
| Stockholders Equity | 12.73B | 9.41B | 8.99B | 8.72B | 8.45B |
Cash Flow | |||||
| Free Cash Flow | -200.00M | 205.80M | 255.70M | 596.24M | 1.01B |
| Operating Cash Flow | -37.00M | 328.40M | 429.30M | 773.54M | 1.19B |
| Investing Cash Flow | 1.11B | -467.10M | -301.80M | -454.80M | -485.72M |
| Financing Cash Flow | -749.00M | 115.90M | -178.20M | -513.51M | -814.52M |
Washington H. Soul Pattinson and Co. Technical Analysis
Positive
44.90
Price Trends
45.34
Positive
44.61
Positive
41.66
Positive
Market Momentum
0.55
Negative
61.12
Neutral
56.23
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 44.9 is below the 20-day moving average (MA) of 45.00, below the 50-day MA of 45.34, and above the 200-day MA of 41.66, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 56.23 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$17.82B | 7.82 | 16.81% | 2.24% | 142.61% | 445.96% | |
70 Neutral | AU$2.42B | -40.73 | -2.42% | 4.38% | -6.27% | -1593.02% | |
68 Neutral | AU$7.59B | 25.89 | 3.26% | 3.19% | -1.15% | -69.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$6.09B | 15.77 | 6.64% | 1.30% | -7.39% | -39.72% | |
62 Neutral | AU$4.81B | 29.68 | 6.17% | 7.56% | 0.19% | -63.33% | |
47 Neutral | AU$301.76M | -0.31 | -135.56% | 2.97% | -7.35% | -115.78% |
* Financial Sector Average
AU:SOL
Washington H. Soul Pattinson and Co.
47.76
9.13
23.65%
AU:NHC
New Hope Corporation Limited
5.95
2.25
60.72%
AU:WHC
Whitehaven Coal Limited
7.71
1.14
17.35%
AU:YAL
Yancoal Australia
6.02
0.82
15.70%
AU:SMR
Stanmore Resources Ltd
2.67
0.54
25.12%
AU:CRN
Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh
0.19
-0.10
-33.93%
Washington H. Soul Pattinson and Co. Corporate Events
Soul Patts Highlights Evolution into Diversified Investment Powerhouse
Sep 23, 2026
The group’s evolution from a dominant mid-20th century pharmacy retailer into a broad-based investment powerhouse has been marked by strategic diversification into building materials, resources, media and telecommunications, including stakes...
Soul Patts lodges updated ASX governance statement and Appendix 4G
Sep 23, 2026
Washington H. Soul Pattinson and Company Limited has lodged its updated corporate governance statement for the financial year ended 31 July 2026, confirming compliance with ASX requirements. The statement, approved by the board and made available ...
Soul Patts posts landmark FY26 as Brickworks merger boosts profits and firepower
Sep 23, 2026
Washington H. Soul Pattinson reported a landmark FY26 with post-tax net asset value rising to $14.5 billion, up 31.4%, and net cash flow from investments increasing 11.5% to $572 million, driven by stronger credit, private company holdings and ind...
Washington H. Soul Pattinson Declares AUD 0.63 Interim Dividend
Sep 23, 2026
Washington H. Soul Pattinson and Company Limited has declared an interim dividend of AUD 0.63 per ordinary fully paid share for the six-month period ended 31 July 2026, continuing its record of shareholder distributions. The dividend will trade ex...
Soul Patts–Brickworks Merger Reshapes ASX Investment Powerhouse
Sep 23, 2026
Washington H. Soul Pattinson and Brickworks Limited have merged under a new holding structure, with First Services Company Limited, later renamed Washington H. Soul Pattinson, becoming the ultimate parent of both entities and listing on the ASX as...
Soul Patts Sets Dates for FY26 Results Release and 2026 AGM
Sep 14, 2026
Washington H. Soul Pattinson and Company Limited announced it will release its full-year financial results for the period ended 31 July 2026, along with details of its final dividend subject to board approval, on 24 September 2026. The results wil...
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...
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.