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SATS Ltd (SG:S58)
SGX:S58
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SATS
(SGX:S58)
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Rating:62Neutral
Price Target:
S$3.50
▲(1.74% 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 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 (S58) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$5.13B
Dividend Yield1.45%
Average Volume (3M)4.12M
Price to Earnings (P/E)21.2
Beta (1Y)1.13
Revenue Growth12.54%
EPS Growth332.80%
CountrySG
Employees52,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,495,069,000
10 Day Avg. Volume2,360,580
30 Day Avg. Volume4,116,423
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$3.70Price Target Upside7.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
SATS Business Overview & Revenue Model
Company DescriptionSATS (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 MoneySATS 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 Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
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.Q1-2025 Updates
Positive Updates
Significant Increase in Net Profit
Net profit jumped to $65 million, a $95 million improvement compared to the previous year.
Cargo Volume Growth
Cargo volume benefited from growth tailwinds, with a 19% increase, outpacing industry growth.
Strong Growth in Aviation Meals
Aviation meals volume increased by 27% year-on-year, contributing to a 15.5% overall growth.
EBITDA Margin Improvement
EBITDA grew to $249 million with a margin of 18.2%, showcasing improved operational efficiency.
Successful Strategic Partnerships
New strategic partnerships with Mitsui and Shun Feng aim to expand market reach and utilization of food factories.
Positive Free Cash Flow
Free cash flow increased by $126 million, reversing a negative flow to $37 million positive.
Recognition and Awards
Recognized for transparency as the most transparent company on SGX and accolades for Asian cuisine quality.
Negative Updates
Operational Challenges in Madrid
Stress environment due to volume pressures in Madrid, requiring expansion with a new cargo terminal.
High Debt Level
Total debt stands at approximately $4 billion, with a commitment to repay $200 million this year.
Headcount Increase
An increase in group headcount by about 2,000 to handle volume, implying potential cost pressures.
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
SATS demonstrates a commendable financial recovery and stability. The income statement reflects strong revenue growth and improved profitability, though operational efficiency can be enhanced. The balance sheet shows a balanced approach to leveraging, with a healthy return on equity. Cash flow metrics are robust, indicating efficient cash management and strong cash generation, positioning the company well for future growth opportunities despite some reliance on debt.Income Statement
SATS has demonstrated a strong recovery in its revenue with a growth rate of 13.04% from 2024 to 2025, indicating a positive trajectory post-pandemic. Gross Profit Margin remained stable at around 16.34% in 2025. The Net Profit Margin has improved significantly to 4.19% in 2025 from 1.09% in 2024, showing better profitability. However, the EBIT and EBITDA margins, at 8.17% and 20.03% respectively, suggest room for improvement in operational efficiency.65
Positive
Balance Sheet
The company's balance sheet indicates reasonable stability with a Debt-to-Equity ratio of 1.64, reflecting moderate leverage. The Return on Equity (ROE) improved to 9.42% in 2025, showcasing effective utilization of shareholders' equity. The Equity Ratio at 29.11% suggests that SATS is maintaining a solid equity base relative to its total assets, although there is still substantial reliance on debt financing.60
Neutral
Cash Flow
SATS has shown robust cash flow management with a Free Cash Flow growth rate of 104.98% from 2024 to 2025, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income ratio of 3.66 in 2025 highlights efficient cash conversion from profits. The Free Cash Flow to Net Income ratio at 2.75 further confirms strong cash flow relative to net income, providing flexibility for future investments.58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.84B | 5.82B | 5.15B | 1.76B | 1.18B | 970.00M |
| Gross Profit | 5.82B | 951.50M | 1.73B | 354.37M | 195.40M | 187.50M |
| EBITDA | 891.70M | 1.17B | 800.80M | 105.22M | 92.48M | 41.69M |
| Net Income | 243.80M | 243.80M | 56.40M | -26.51M | 20.37M | -78.93M |
Balance Sheet | ||||||
| Total Assets | 8.88B | 8.88B | 8.48B | 4.67B | 3.29B | 3.09B |
| Cash, Cash Equivalents and Short-Term Investments | 694.00M | 694.00M | 659.00M | 374.46M | 786.04M | 879.85M |
| Total Debt | 4.24B | 4.24B | 4.10B | 1.48B | 837.84M | 873.43M |
| Total Liabilities | 6.11B | 6.11B | 5.92B | 2.16B | 1.46B | 1.39B |
| Stockholders Equity | 2.59B | 2.59B | 2.38B | 2.33B | 1.60B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 648.30M | 669.40M | 326.50M | -39.85M | -15.67M | 56.22M |
| Operating Cash Flow | 858.00M | 891.10M | 512.10M | 79.55M | 62.32M | 117.75M |
| Investing Cash Flow | -100.80M | -100.80M | 68.00M | -1.83B | 31.11M | -28.38M |
| Financing Cash Flow | -765.20M | -765.20M | -292.00M | 1.34B | -189.30M | 239.52M |
SATS Technical Analysis
Neutral
3.44
Price Trends
3.37
Positive
3.26
Positive
3.15
Positive
Market Momentum
0.02
Positive
51.59
Neutral
68.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S58, the sentiment is Neutral. The current price of 3.44 is below the 20-day moving average (MA) of 3.47, above the 50-day MA of 3.37, and above the 200-day MA of 3.15, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
| ― | $13.71B | 9.62 | 30.76% | 3.41% | 0.42% | 40.48% | |
| ― | $20.85B | 7.53 | 17.47% | 5.99% | 2.77% | 3.88% | |
| ― | $3.78B | 27.05 | 8.24% | 2.54% | 13.79% | 44.05% | |
| ― | $3.19B | 14.40 | 8.37% | 2.68% | 15.63% | 12.07% | |
| ― | $7.03B | 26.34 | 4.07% | 0.69% | 25.68% | ― | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
| ― | $5.13B | 21.21 | 9.89% | 1.45% | 12.54% | 332.80% |
* Industrials Sector Average
SG:S58
SATS
3.44
-0.47
-12.07%
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3.52
1.17
49.85%
SG:C6L
SIA - Singapore Airlines
6.68
0.62
10.23%
SG:5E2
Seatrium Limited
2.17
0.28
15.12%
SG:BS6
Yangzijiang Shipbuilding (Holdings)
3.52
1.13
46.97%
SATS Corporate Events
SATS Ltd. Terminates Multicurrency Note Programme
Oct 3, 2025
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.
SATS Ltd. Issues S$300 Million Fixed Rate Notes Under Debt Programme
Aug 6, 2025
SATS Ltd. has issued S$300 million in fixed rate notes due in 2032 as part of its US$3 billion multicurrency debt issuance program. This move, facilitated by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, aims to strengthen SATS’ financial position and enhance its market competitiveness, with the notes expected to be listed on the Singapore Exchange.
SATS Ltd. Prices S$300 Million Fixed Rate Notes Due 2032
Jul 30, 2025
SATS Ltd. has announced the pricing of S$300,000,000 in 2.45% fixed rate notes due in 2032, under its US$3,000,000,000 multicurrency debt issuance program. The issuance, managed by DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited, aims to refinance existing borrowings and is expected to be listed on the Singapore Exchange. The notes have been rated ‘A3’ by Moody’s, indicating a stable credit outlook, and will be offered under specific exemptions in Singapore, potentially impacting the company’s financial strategy and market positioning.
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.