SATS (S58) AI Stock Analysis

• Market Cap: S$5.80B
• Dividend Yield: 1.44%
• Average Volume (3M): 3.84M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.13
• Revenue Growth: 10.26%
• EPS Growth: 30.63%
• Country: SG
• Employees: 52,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.10
• Shares Outstanding: 1,495,069,000
• 10 Day Avg. Volume: 5,657,830
• 30 Day Avg. Volume: 3,842,910
• PEG Ratio: 0.06
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 6.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$4.09
• Price Target Upside: 6.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.25
• Revenue Forecast (FY): S$7.94B

• Rating: 62 Neutral
• Price Target: S$4.00 ▲(3.90% Upside)

SATS's overall stock score is driven by mixed financial performance with improved profitability but challenges in revenue growth and high leverage. Technical analysis shows a slightly positive trend, while valuation indicates moderate pricing with a low dividend yield.

Positive Factors

Improved operating margins

Sustained improvement in EBIT/EBITDA and net margins reflects stronger cost control and operational execution. Higher margins improve cash generation and resilience across cycles, enabling reinvestment and debt servicing even if revenue growth remains uneven over the next several months.

Diversified revenue streams and partnerships

A multi-pronged business model—airline catering, food production, retail and logistics—reduces single-segment dependence. Long-term airline and food brand partnerships create recurring contract revenues and cross-sell opportunities, bolstering structural demand and revenue durability in the region.

Improved return on equity and moderate equity base

Rising ROE signals more effective use of shareholder capital and improved profitability relative to equity. Coupled with a ~29% equity ratio, this suggests the company is generating better returns while maintaining a moderate equity buffer, supporting sustainable shareholder value creation.

Negative Factors

High leverage

A debt-to-equity ratio of 1.64 indicates substantial reliance on debt financing. Elevated leverage raises interest and refinancing risk, reduces financial flexibility for capex or acquisitions, and increases vulnerability to rate rises or cyclical revenue weakness over the medium term.

Declining free cash flow conversion

Negative FCF growth and a low operating cash flow to net income ratio point to weaker cash conversion. This reduces capacity to fund capex, repay debt, or return capital, and constrains strategic flexibility unless cash generation stabilizes or improves sustainably.

Significant revenue contraction in 2025

A sharp revenue decline undermines scale economies and pressures fixed-cost absorption. Even with improved margins, persistent top-line weakness can erode competitive positioning, limit reinvestment, and force cost or asset adjustments that weigh on medium-term growth prospects.

SATS Business Overview & Revenue Model

Company Description

SATS Ltd., an investment holding company, provides gateway services and food solutions in Singapore, Japan, and internationally. The company operates through three segments: Food Solutions, Gateway Services, and Others. The Food Solutions segment offers inflight and institutional catering; food processing, distribution services, and airline laundry services. The Gateway Services segment provides airport services, which include airfreight handling services, passenger services, aviation security services, baggage handling services, and apron services, as well as cruise terminal services; and manages and operates marine bay cruise center. The Other Services segment provides rental and other services. In addition, the company offers air cargo, travel retail, security, passenger and private jet services; linen and laundry; food services-solution and distribution; commercial, institutional and aviation catering. The company serves airline, hospitality, healthcare, food, education, and government agencies; and airfreight and logistics industries. SATS Ltd. was formerly known as Singapore Airport Terminal Services Limited and changed its name to SATS Ltd. In July 2010. The company was incorporated in 1972 and is headquartered in Singapore.

How the Company Makes Money

SATS generates revenue through several key streams, primarily from its catering services for the aviation sector, which includes providing meals and related services to airlines. Additionally, the company earns income from its food production and retail services, which cater to both institutional and individual customers. Logistics services also contribute to revenue, as SATS provides supply chain solutions that enhance food distribution efficiency. Significant partnerships with major airlines and food brands bolster its earnings, while the company's focus on expanding its service offerings and geographic reach further enhances its revenue potential.

SATS Financial Statement Overview

Summary

SATS shows mixed financial performance with improved profitability margins and return on equity. However, challenges include declining revenue growth and high leverage, along with potential risks from declining free cash flow growth.

Income Statement

SATS has shown a mixed performance in its income statement. The company experienced a significant decline in revenue growth rate at -17.27% in 2025, indicating challenges in maintaining its revenue stream. However, the EBIT and EBITDA margins have improved to 10.40% and 20.03% respectively, suggesting better operational efficiency. The net profit margin also improved to 4.19%, reflecting enhanced profitability despite the revenue drop.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.64, which suggests a heavy reliance on debt financing. This could pose a risk if interest rates rise or if revenue does not recover. However, the return on equity improved to 9.43%, showing better profitability relative to shareholder equity. The equity ratio stands at 29.12%, indicating a moderate level of financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -11.65%, which could impact future investments and debt servicing. The operating cash flow to net income ratio is 0.26, indicating that operating cash flow is not significantly higher than net income, which may limit financial flexibility. The free cash flow to net income ratio is 0.75, suggesting that a substantial portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.60B	5.82B	5.15B	1.76B	1.18B	970.00M
Gross Profit	4.57B	951.50M	1.73B	354.37M	195.40M	187.50M
EBITDA	745.30M	1.17B	800.80M	105.22M	92.48M	41.69M
Net Income	188.00M	243.80M	56.40M	-26.51M	20.37M	-78.93M
Balance Sheet
Total Assets	8.89B	8.88B	8.48B	4.67B	3.29B	3.09B
Cash, Cash Equivalents and Short-Term Investments	667.20M	694.00M	659.00M	374.46M	786.04M	879.85M
Total Debt	4.19B	4.24B	4.10B	1.48B	837.84M	873.43M
Total Liabilities	5.99B	6.11B	5.92B	2.16B	1.46B	1.39B
Stockholders Equity	2.70B	2.59B	2.38B	2.33B	1.60B	1.55B
Cash Flow
Free Cash Flow	772.30M	669.40M	326.50M	-39.85M	-15.67M	56.22M
Operating Cash Flow	960.10M	891.10M	512.10M	79.55M	62.32M	117.75M
Investing Cash Flow	3.00M	-100.80M	68.00M	-1.83B	31.11M	-28.38M
Financing Cash Flow	-845.80M	-765.20M	-292.00M	1.34B	-189.30M	239.52M

SATS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.85 is above the 20-day moving average (MA) of 3.80, above the 50-day MA of 3.59, and above the 200-day MA of 3.24, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S58.

SATS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BS6	79 Outperform	S$14.50B	10.18	30.76%	3.46%	0.42%	40.48%
C6L	70 Outperform	S$20.01B	8.33	14.98%	6.21%	1.91%	14.96%
S59	69 Neutral	$3.96B	25.62	9.03%	2.68%	20.88%	45.05%
C52	66 Neutral	S$3.19B	14.40	8.37%	5.55%	15.63%	12.07%
5E2	66 Neutral	S$7.76B	29.28	4.07%	0.70%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
S58	62 Neutral	S$5.80B	22.41	9.76%	1.44%	10.26%	30.63%

SATS Corporate Events

SATS Strengthens Board with Appointment of New Independent Director

SATS Ltd. has announced the appointment of Malcolm Wilson as an Independent Non-Executive Director, effective 15 January 2026, as part of a broader refresh of its board composition. With his appointment, the board will comprise nine members, a majority of whom are independent and non-executive, reinforcing SATS’ governance framework and oversight capacity. Wilson will also join the Remuneration and Human Resource Committee and the Safety, Sustainability and Risk Committee, moves that signal the company’s continued emphasis on strengthening its human capital, risk management, and sustainability oversight as it navigates a complex operating environment in aviation services.

The most recent analyst rating on (SG:S58) stock is a Buy with a S$4.40 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.

SATS Announces Board Renewal as Long-Serving Independent Director to Step Down

SATS Ltd has announced that Independent Director Jessica Tan Soon Neo will step down from the Board at the close of business on 31 December 2025, relinquishing her roles as Chairperson of the Nominating Committee and member of the Audit Committee after nearly nine years of service. Her departure forms part of the Board’s ongoing renewal process to comply with Singapore Exchange listing rules on regular board refreshment and to preserve board effectiveness and independence, with the company expressing strong appreciation for her contribution and confirming that, from 1 January 2026, the Board will be led by Independent Chairman Irving Tan alongside President and CEO Kerry Mok and a majority of independent non-executive directors.

The most recent analyst rating on (SG:S58) stock is a Hold with a S$3.84 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.