SATS (S58) AI Stock Analysis

• Market Cap: S$5.42B
• Dividend Yield: 1.48%
• Average Volume (3M): 3.39M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.14
• 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: 3,813,000
• 30 Day Avg. Volume: 3,385,953
• 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$4.02
• Price Target Upside: 8.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.25
• Revenue Forecast (FY): S$8.00B

• Rating: 62 Neutral
• Price Target: S$3.50 ▼(-5.91% Downside)

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 Profitability Margins

Improved profitability margins indicate better operational efficiency, which can enhance long-term financial health and competitiveness.

Strategic Financial Shift

Terminating the note programme suggests a strategic shift in financial operations, potentially reducing reliance on debt and improving financial flexibility.

Enhanced Market Competitiveness

Issuing fixed rate notes enhances financial stability, allowing SATS to invest in growth opportunities and improve market competitiveness.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a challenge to maintaining market share and could impact long-term business sustainability if not addressed.

High Leverage

High leverage increases financial risk, especially if interest rates rise or revenue does not recover, potentially straining cash flow.

Declining Free Cash Flow

Declining free cash flow limits investment capacity and debt servicing ability, which can hinder growth and financial stability.

SATS Business Overview & Revenue Model

Company Description

SATS (S58) is a leading provider of food solutions and services in Asia, primarily focused on the aviation and food industries. The company operates in multiple sectors, including catering services for airlines, food production, and logistics. SATS offers a range of core products and services, including in-flight catering, meal preparation for various dining segments, and supply chain management, ensuring quality and safety in food delivery across its operations.

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: 3.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 3.72 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.44, and above the 200-day MA of 3.16, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 79.13 is Negative, neither overbought nor oversold. The STOCH value of 95.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BS6	79 Outperform	$13.75B	9.65	30.76%	3.41%	0.42%	40.48%
C6L	70 Outperform	S$19.82B	8.25	14.98%	6.29%	1.91%	14.96%
S59	69 Neutral	S$3.86B	24.96	9.03%	2.73%	20.88%	45.05%
C52	66 Neutral	S$3.14B	14.20	8.37%	5.71%	15.63%	12.07%
5E2	65 Neutral	S$7.04B	26.60	4.07%	0.72%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
S58	62 Neutral	S$5.42B	20.98	9.76%	1.48%	10.26%	30.63%

SATS Corporate Events

SATS Ltd. Terminates Multicurrency Note Programme

SATS Ltd. has announced the termination of its S$2,000,000,000 Multicurrency Medium Term Note Programme, effective from October 3, 2025. The termination includes the cessation of all related appointments, such as DBS Trustee Limited as trustee and DBS Bank Ltd. as issuing and paying agent. There are no outstanding notes under this programme, indicating a strategic shift in the company’s financial operations.