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SATS
(SGX:S58)
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Rating:65Neutral
Price Target:
S$4.00
â–¼(-0.74% Downside)
Action:Reiterated
Date:08/21/26
The score is primarily supported by improving fundamentals—sharp revenue growth, a return to profitability, and strong recent operating/free cash flow that has helped reduce debt in 2026. Offsetting this, technicals are mixed with the share price below key short-term moving averages, and valuation is only moderate with a mid-range P/E and a modest dividend yield.
Positive Factors
Revenue Recovery
The sharp multi-year revenue increase indicates substantial recovery in customer activity and service volumes across SATS’s aviation, food solutions, and gateway operations. A larger revenue base can support better infrastructure utilization, strengthen customer relationships, and improve operating leverage over the next several quarters.
Negative Factors
Cash Flow Volatility
Although recent cash generation is strong, the history of negative free cash flow shows that cash conversion can weaken materially during adverse cycles or periods of heavier spending. This volatility may constrain the consistency of debt reduction, reinvestment, and shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The sharp multi-year revenue increase indicates substantial recovery in customer activity and service volumes across SATS’s aviation, food solutions, and gateway operations. A larger revenue base can support better infrastructure utilization, strengthen customer relationships, and improve operating leverage over the next several quarters.
Read all positive factors
SATS (S58) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$5.38B
Dividend Yield1.93%
Average Volume (3M)4.32M
Price to Earnings (P/E)19.1
Beta (1Y)1.01
Revenue Growth9.01%
EPS Growth17.18%
CountrySG
Employees57,000
SectorIndustrials
Sector Strength72
IndustryGeneral Transportation
Share Statistics
EPS (TTM)0.19
Shares Outstanding1,495,069,000
10 Day Avg. Volume3,543,230
30 Day Avg. Volume4,320,380
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)1.90
Price to Sales (P/S)0.83
P/FCF Ratio6.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$5.07Price Target Upside25.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.22
Revenue Forecast (FY)S$6.80B
SATS Business Overview & Revenue Model
Company Description
SATS Ltd., an investment holding company, provides gateway services and food solutions in Singapore, the Asia Pacific, the Americas, Europe, the Middle East, Africa, and internationally. It operates through three segments: Food Solutions, Gateway ...
How the Company Makes Money
SATS makes money primarily by providing outsourced services to airlines, airports, and logistics customers under contractual arrangements, earning service fees based on volumes handled, service complexity, and contract terms.
Key revenue streams ...
SATS Earnings Call Summary
Earnings Call Date:Aug 20, 2024
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 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
78
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.35B | 5.82B | 5.15B | 1.76B | 1.18B |
| Gross Profit | 1.74B | 951.50M | 1.73B | 354.37M | 195.40M |
| EBITDA | 1.15B | 1.17B | 800.80M | 105.22M | 92.48M |
| Net Income | 285.20M | 243.80M | 56.40M | -26.51M | 20.37M |
Balance Sheet | |||||
| Total Assets | 9.07B | 8.88B | 8.48B | 4.67B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 752.50M | 694.00M | 659.00M | 374.46M | 786.04M |
| Total Debt | 4.14B | 4.24B | 4.10B | 1.48B | 837.84M |
| Total Liabilities | 6.14B | 6.11B | 5.92B | 2.16B | 1.46B |
| Stockholders Equity | 2.75B | 2.59B | 2.38B | 2.33B | 1.60B |
Cash Flow | |||||
| Free Cash Flow | 760.10M | 669.40M | 326.50M | -39.85M | -15.67M |
| Operating Cash Flow | 1.10B | 891.10M | 512.10M | 79.55M | 62.32M |
| Investing Cash Flow | -324.50M | -100.80M | 68.00M | -1.83B | 31.11M |
| Financing Cash Flow | -721.20M | -765.20M | -292.00M | 1.34B | -189.30M |
SATS Technical Analysis
Negative
4.03
Price Trends
3.81
Negative
4.16
Negative
3.89
Negative
Market Momentum
-0.07
Negative
39.21
Neutral
71.80
Neutral
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 4.03 is above the 20-day moving average (MA) of 3.66, above the 50-day MA of 3.81, and above the 200-day MA of 3.89, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 71.80 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | S$31.60B | 56.58 | 22.44% | 2.37% | 11.42% | -25.59% | |
68 Neutral | S$3.31B | 19.58 | 9.78% | 3.73% | 14.28% | 21.19% | |
65 Neutral | S$5.38B | 19.05 | 10.46% | 1.93% | 9.01% | 17.18% | |
65 Neutral | S$447.85M | 41.67 | 1.66% | 0.89% | 10.02% | 11.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | S$20.91B | 22.57 | 5.62% | 4.07% | 5.03% | -59.42% | |
47 Neutral | S$629.88M | 12.61 | 4.34% | 31.95% | -72.75% | -78.67% |
* Industrials Sector Average
SG:S58
SATS
3.62
0.26
7.64%
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SATS Corporate Events
SATS Assistant Company Secretary to Resign After Nearly Decade of Service
Oct 8, 2026
SATS Ltd. has announced that Assistant Company Secretary Low Siew Tian will step down from her role with effect from 9 October 2026 after nearly a decade of service to the company. The board expressed its appreciation for her contributions over th...
SATS Expands $3bn Multicurrency Debt Programme With New Issuer and SGX Backing
Sep 2, 2026
SATS Ltd. has updated its U.S.$3 billion guaranteed multicurrency debt issuance programme to add wholly owned subsidiary SATS Investments (III) Pte. Ltd. as an additional issuer, alongside SATS Treasury and Worldwide Flight Services, Inc., with DB...
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.