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:S58
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SATS (S58) AI Stock Analysis

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SG:S58

SATS

(OTC:S58)

Rating:68Neutral
Price Target:
S$3.50
▲(8.70% Upside)
SATS exhibits strong financial performance with robust revenue growth and improved profitability. The technical analysis indicates a stable upward trend with bullish momentum. Valuation is balanced with a moderate P/E ratio and a modest dividend yield. Overall, SATS is positioned well for growth with strong cash flow management, though operational efficiency could be improved.
Positive Factors
Investment and Development
SATS increased its Singapore headcount as it enters the next phase of investments associated with the development of the Terminal 5 project.
Market Position
SATS's continued market share gains offer resiliency to earnings downside amid global trade uncertainties.
Negative Factors
Economic Risks
Downside risks include margin compression from weaker operating leverage due to softening cargo volumes and aviation travel industry slowdown due to global economic downturn.
Regulatory Changes
The change in the US de minimis tax rule for air cargo is a negative development for SATS.

SATS (S58) vs. iShares MSCI Singapore ETF (EWS)

SATS Business Overview & Revenue Model

Company DescriptionSATS 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 MoneySATS generates revenue through multiple streams, predominantly from its gateway services and food solutions. The gateway services segment includes airport ground handling, cargo handling, and passenger services, which contribute significantly to its revenue by charging airlines and airport operators for these essential operations. The food solutions segment focuses on inflight catering and institutional catering services, supplying meals and related services to airlines, hotels, and other institutions. Additionally, SATS benefits from strategic partnerships and joint ventures across Asia, expanding its market reach and enhancing its service offerings. These partnerships allow SATS to tap into new markets and customer bases, further driving its revenue growth.

SATS Earnings Call Summary

Earnings Call Date:May 23, 2025
(Q1-2025)
|
% Change Since: 9.23%|
Next Earnings Date:Aug 20, 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 commendable financial recovery and stability. The company has shown strong revenue growth and improved profitability, though operational efficiency can be enhanced. The balance sheet reflects a balanced approach to leveraging with a healthy return on equity. Robust cash flow metrics indicate efficient cash management and strong cash generation.
Income Statement
65
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
75
Positive
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.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.82B5.15B1.76B1.18B970.00M
Gross Profit951.50M1.73B354.37M195.40M187.50M
EBITDA1.17B800.80M105.22M92.48M41.69M
Net Income243.80M56.40M-26.51M20.37M-78.93M
Balance Sheet
Total Assets8.88B8.48B4.67B3.29B3.09B
Cash, Cash Equivalents and Short-Term Investments694.00M659.00M374.46M786.04M879.85M
Total Debt4.24B4.10B1.48B837.84M873.43M
Total Liabilities6.11B5.92B2.16B1.46B1.39B
Stockholders Equity2.59B2.38B2.33B1.60B1.55B
Cash Flow
Free Cash Flow669.40M326.50M-39.85M-15.67M56.22M
Operating Cash Flow891.10M512.10M79.55M62.32M117.75M
Investing Cash Flow-100.80M68.00M-1.83B31.11M-28.38M
Financing Cash Flow-765.20M-292.00M1.34B-189.30M239.52M

SATS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.22
Price Trends
50DMA
3.11
Positive
100DMA
2.99
Positive
200DMA
3.26
Negative
Market Momentum
MACD
0.04
Positive
RSI
54.45
Neutral
STOCH
16.36
Positive
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 3.22 is below the 20-day moving average (MA) of 3.22, above the 50-day MA of 3.11, and below the 200-day MA of 3.26, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 16.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S58.

SATS Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥257.35B14.368.48%2.83%6.31%12.01%
68
Neutral
S$4.78B19.449.89%1.55%12.54%332.80%
$2.61B15.308.14%5.34%
$2.70B27.398.24%2.23%
$16.03B8.1617.47%7.98%
$6.09B32.034.07%0.62%
$7.76B8.3828.14%4.37%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:S58
SATS
3.22
0.21
6.80%
CDGLF
Comfortdelgro
1.11
0.11
11.00%
SEGSF
SIA Engineering Co
2.55
0.92
56.44%
SINGF
SIA - Singapore Airlines
5.75
1.34
30.39%
SMBMF
Seatrium Limited
1.89
0.79
71.82%
YSHLF
Yangzijiang Shipbuilding (Holdings)
2.00
0.23
12.99%

SATS Corporate Events

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.

The most recent analyst rating on (SG:S58) stock is a Buy with a S$4.37 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.

SATS Ltd. Issues US$100 Million Fixed Rate Notes to Bolster Financial Strategy
Jun 23, 2025

SATS Ltd. announced that its wholly-owned subsidiary, World Flight Services, Inc., has issued US$100 million in fixed rate notes due 2030 under its multicurrency debt issuance programme. This strategic financial move, coordinated by MUFG Securities EMEA plc, is part of SATS’ broader efforts to strengthen its financial position and support its operational capabilities, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (SG:S58) stock is a Buy with a S$4.26 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.

SATS Ltd. Launches US$100 Million Fixed-Rate Notes for Debt Refinancing
Jun 18, 2025

SATS Ltd. has announced that its wholly-owned subsidiary, World Flight Services, Inc., has launched and priced US$100,000,000 worth of fixed-rate notes due in 2030, as part of its US$3,000,000,000 multicurrency debt issuance programme. The issuance, which is guaranteed by SATS Ltd., aims to refinance existing borrowings without increasing the Group’s overall debt, thereby maintaining its financial stability and potentially enhancing its market position.

The most recent analyst rating on (SG:S58) stock is a Buy with a S$4.26 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.

SATS Ltd. Announces Board and Committee Changes
Jun 2, 2025

SATS Ltd. is undergoing changes in its Board and Board Committees, with the retirement of Mr. Chia Kim Huat and the stepping down of Mr. Achal Agarwal as part of a renewal process. These changes are in line with the Singapore Exchange’s guidelines for maintaining board effectiveness and independence. The company expresses gratitude for the contributions of Mr. Chia and Mr. Agarwal, acknowledging their roles in the company’s success.

The most recent analyst rating on (SG:S58) stock is a Buy with a S$4.26 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.

SATS Invests S$250 Million to Enhance Changi Airport Operations
May 15, 2025

SATS Ltd. announced a significant investment of over S$250 million to upgrade and transform its capabilities at Changi Airport. This investment aims to enhance ground operations and cargo handling infrastructure, with S$150 million allocated for renewing and expanding the ground support equipment fleet over five years and S$100 million for enhancing cargo operations over two years. These initiatives are expected to improve operational reliability, safety, and efficiency, supporting increased cargo volumes and the future expansion of Changi Airport. The investment underscores SATS’ commitment to the Changi ecosystem and highlights the strategic importance of the Singapore Air Hub to its global business operations.

The most recent analyst rating on (SG:S58) stock is a Buy with a S$3.60 price target. To see the full list of analyst forecasts on SATS stock, see the SG:S58 Stock Forecast page.

SATS Appoints New Chief Digital Officer to Drive Global Digitalization
May 6, 2025

SATS Ltd. has appointed Sandeep Sakharkar as Chief Digital Officer to spearhead its global digitalization efforts. With a strong background in digital transformation across various industries, Sandeep will lead the integration of advanced technologies such as data analytics, automation, and AI into SATS’ operations. This strategic move follows SATS’ acquisition of WFS and aims to enhance supply chain performance and customer experience, reinforcing SATS’ commitment to innovation and its leadership position in the industry.

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.Date of analysis: Aug 05, 2025