SATS Ltd (SG:S58)
SGX:S58
Want to see SG:S58 full AI Analyst Report?
Top Page
SATS
(SGX:S58)
Select Model
Select Model
Rating:62Neutral
Price Target:
S$4.00
▲(12.68% Upside)
Action:ReiteratedDate:10/29/25
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
Sustained margin improvement signals better operational efficiency and cost control across core operations. Higher EBIT/EBITDA margins increase earnings resilience versus revenue swings, improving the company’s ability to generate cash from operations and sustain investment and debt servicing over the medium term.
Negative Factors
High leverage
A debt-to-equity ratio of 1.64 and modest equity ratio indicate heavy reliance on debt financing. Structurally higher leverage raises interest expense sensitivity, limits strategic flexibility, and heightens refinancing and liquidity risk if operating cash flows weaken or rates rise over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability margins
Sustained margin improvement signals better operational efficiency and cost control across core operations. Higher EBIT/EBITDA margins increase earnings resilience versus revenue swings, improving the company’s ability to generate cash from operations and sustain investment and debt servicing over the medium term.
Read all positive factors
SATS (S58) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$5.04B
Dividend Yield1.44%
Average Volume (3M)3.84M
Price to Earnings (P/E)16.7
Beta (1Y)1.16
Revenue Growth10.26%
EPS Growth30.63%
CountrySG
Employees52,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,495,069,000
10 Day Avg. Volume5,657,830
30 Day Avg. Volume3,842,910
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.77
Price to Sales (P/S)0.79
P/FCF Ratio6.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$4.55Price Target Upside28.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.22
Revenue Forecast (FY)S$6.42B
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 ...
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 ...
SATS Earnings Call Summary
Earnings Call Date:Aug 20, 2024
(Q1-2025)
| % Change Since: |
Next Earnings Date:Jun 01, 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
65
Positive
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 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
Negative
3.55
Price Trends
3.70
Negative
3.69
Negative
3.50
Positive
Market Momentum
-0.03
Negative
43.09
Neutral
6.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S58, the sentiment is Negative. The current price of 3.55 is below the 20-day moving average (MA) of 3.59, below the 50-day MA of 3.70, and above the 200-day MA of 3.50, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 6.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | S$20.11B | 9.94 | 11.35% | 6.21% | 1.91% | 14.96% | |
69 Neutral | S$3.57B | 20.51 | 6.65% | 2.68% | 20.88% | 45.05% | |
65 Neutral | S$809.85M | 16.58 | 20.03% | 22.42% | -68.90% | 194.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | S$5.04B | 16.71 | 10.43% | 1.44% | 10.26% | 30.63% | |
60 Neutral | S$546.38M | 68.26 | 1.18% | ― | 12.19% | ― | |
59 Neutral | S$34.34B | 56.74 | 17.50% | 2.01% | 9.50% | -34.09% |
* Industrials Sector Average
SG:S58
SATS
3.39
0.63
22.69%
SG:S59
SIA Engineering Co
3.18
1.03
48.04%
SG:S63
ST Engineering
11.02
3.83
53.27%
SG:C6L
SIA - Singapore Airlines
6.39
0.11
1.78%
SG:S08
Singapore Post
0.36
-0.12
-25.62%
SG:F83
COSCO Shipping International Singapore Co Ltd
0.12
>-0.01
-3.94%
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.