SATS Ltd (SG:S58)
SGX:S58
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SATS
(SGX:S58)
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Rating:63Neutral
Price Target:
S$4.50
▲(26.76% Upside)
Action:Reiterated
Date:05/26/26
The score is driven primarily by improving fundamentals—strong revenue growth, restored profitability, and solid recent cash generation with balance-sheet improvement in 2026. This is tempered by weak technical momentum (below key moving averages with negative MACD) and only moderate valuation support (P/E ~16.7; dividend yield ~1.6%).
Positive Factors
Revenue Recovery
A near 3.5x revenue rebound from 2023–2026 indicates durable demand recovery and successful customer re-engagement. Higher scale supports fixed-cost absorption, stronger contract negotiating position, and greater structural capacity to invest in service improvements and geographic expansion over the medium term.
Negative Factors
Cyclical Cash Flow Volatility
Historical swings from negative to positive free cash flow show sensitivity to volume and timing of recovery. Such volatility can constrain consistent capital allocation, force defensive asset sales or deferment of strategic projects, and makes planning dividends or sustained buybacks more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
A near 3.5x revenue rebound from 2023–2026 indicates durable demand recovery and successful customer re-engagement. Higher scale supports fixed-cost absorption, stronger contract negotiating position, and greater structural capacity to invest in service improvements and geographic expansion over the medium term.
Read all positive factors
SATS (S58) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$6.49B
Dividend Yield1.44%
Average Volume (3M)3.84M
Price to Earnings (P/E)22.7
Beta (1Y)1.16
Revenue Growth9.01%
EPS Growth17.18%
CountrySG
Employees52,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding1,495,069,000
10 Day Avg. Volume5,657,830
30 Day Avg. Volume3,842,910
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)1.90
Price to Sales (P/S)0.83
P/FCF Ratio6.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$4.68Price Target Upside31.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.21
Revenue Forecast (FY)S$6.63B
SATS Business Overview & Revenue Model
Company Description
SATS Ltd., a prominent investment holding company, is a globally recognized provider of integrated gateway services and comprehensive food solutions. Its extensive operations span Singapore, Japan, and numerous international markets. The company's...
How the Company Makes Money
SATS makes money primarily by providing (1) aviation gateway services and (2) food solutions services under contractual arrangements with customers.
1) Gateway Services (aviation services)
- Ground handling and airport services: SATS earns servic...
SATS Earnings Call Summary
Earnings Call Date:Aug 20, 2024
(Q1-2025)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant profit growth, increased cargo and meal volumes, and strategic partnerships to drive future growth. However, challenges such as operational pressures in Madrid and high debt levels were noted.Positive Updates
Significant Increase in Net Profit
Net profit jumped to $65 million, a $95 million improvement compared to the previous year.
Negative Updates
Operational Challenges in Madrid
Stress environment due to volume pressures in Madrid, requiring expansion with a new cargo terminal.
Read all updates
Q1-2025 Updates
Positive
Negative
Significant Increase in Net Profit
Net profit jumped to $65 million, a $95 million improvement compared to the previous year.
Read all positive updates
Company Guidance
During the SATS Group Earnings Call for Q1 2025, the executives provided detailed guidance highlighting significant improvements across various financial metrics. The net profit surged to $65 million, marking a remarkable $95 million increase compared to the previous year, driven primarily by a 19% growth in air cargo volume and a 27% increase in aviation meal volume. The revenue rose by 15.5% to $1.37 billion, with EBITDA reaching $249 million, reflecting an 18.2% margin. Free cash flow improved dramatically, reversing a previous negative figure to $37 million this quarter. The company also emphasized strategic partnerships, such as those with Mitsui and Shun Feng, to enhance future growth opportunities, particularly in e-commerce and food business sectors. Additionally, the company reported a strong operating leverage, with operating expenses growing at a slower rate than revenue, thus expanding the EBIT margin to 8.2% from a mere 0.7% previously. Looking forward, SATS remains optimistic about maintaining momentum in cargo and food services, leveraging ongoing integration and strategic initiatives to bolster future performance.SATS Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.35B | 5.82B | 5.15B | 1.76B | 1.18B |
| Gross Profit | 1.74B | 951.50M | 1.73B | 354.37M | 195.40M |
| EBITDA | 1.15B | 1.17B | 800.80M | 105.22M | 92.48M |
| Net Income | 285.20M | 243.80M | 56.40M | -26.51M | 20.37M |
Balance Sheet | |||||
| Total Assets | 9.07B | 8.88B | 8.48B | 4.67B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 752.50M | 694.00M | 659.00M | 374.46M | 786.04M |
| Total Debt | 4.14B | 4.24B | 4.10B | 1.48B | 837.84M |
| Total Liabilities | 6.14B | 6.11B | 5.92B | 2.16B | 1.46B |
| Stockholders Equity | 2.75B | 2.59B | 2.38B | 2.33B | 1.60B |
Cash Flow | |||||
| Free Cash Flow | 760.10M | 669.40M | 326.50M | -39.85M | -15.67M |
| Operating Cash Flow | 1.10B | 891.10M | 512.10M | 79.55M | 62.32M |
| Investing Cash Flow | -324.50M | -100.80M | 68.00M | -1.83B | 31.11M |
| Financing Cash Flow | -721.20M | -765.20M | -292.00M | 1.34B | -189.30M |
SATS Technical Analysis
Positive
3.55
Price Trends
3.60
Positive
3.67
Positive
3.58
Positive
Market Momentum
0.21
Negative
80.76
Negative
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S58, the sentiment is Positive. The current price of 3.55 is below the 20-day moving average (MA) of 3.88, below the 50-day MA of 3.60, and below the 200-day MA of 3.58, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 80.76 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S58.
SATS Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | S$3.81B | 33.13 | 6.65% | 2.68% | 14.28% | 21.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | S$6.49B | 22.69 | 10.80% | 1.44% | 9.01% | 17.18% | |
63 Neutral | S$22.91B | 18.87 | 7.42% | 6.21% | 5.03% | -59.42% | |
60 Neutral | S$506.07M | 60.98 | 0.75% | ― | 12.19% | ― | |
59 Neutral | S$33.75B | 74.73 | 17.50% | 2.01% | 9.50% | -34.09% | |
44 Neutral | S$731.11M | 13.20 | 20.03% | 22.42% | -72.75% | -78.67% |
* Industrials Sector Average
SG:S58
SATS
4.37
1.42
48.14%
SG:S59
SIA Engineering Co
3.39
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SG:C6L
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7.28
0.94
14.74%
SG:S08
Singapore Post
0.33
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SG:F83
COSCO Shipping International Singapore Co Ltd
0.11
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SATS Corporate Events
SATS reshapes board and committees as director Vinita Bali to retire in 2026
Jun 5, 2026
SATS Ltd. announced that independent director Vinita Bali will retire from its board at the annual general meeting scheduled for 17 July 2026, where she will also step down as chair of the Safety, Sustainability and Risk Committee and as a member ...
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.