Market Cap
S$3.1b
Last Updated
2020/05/25 12:44 UTC
Data Sources
Company Financials +
Executive Summary
SATS Ltd., an investment holding company, provides gateway services and food solutions in Singapore, Japan, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -11.6% per year for the next 3 years
Dividend of 6.81% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Flawless balance sheet second-rate dividend payer.
Share Price & News
How has SATS's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: S58's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.3%
S58
-1.1%
SG Infrastructure
-0.8%
SG Market
1 Year Return
-44.9%
S58
-20.4%
SG Infrastructure
-22.5%
SG Market
Return vs Industry: S58 underperformed the SG Infrastructure industry which returned -20.4% over the past year.
Return vs Market: S58 underperformed the SG Market which returned -22.5% over the past year.
Shareholder returns
| S58 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | -1.1% | -0.8% |
| 30 Day | -6.7% | 0.2% | -1.3% |
| 90 Day | -36.0% | -11.5% | -21.1% |
| 1 Year | -42.7%-44.9% | -18.2%-20.4% | -18.9%-22.5% |
| 3 Year | -38.8%-45.1% | -16.1%-22.7% | -17.1%-26.5% |
| 5 Year | -1.4%-17.7% | -27.3%-36.0% | -14.9%-29.9% |
Price Volatility Vs. Market
How volatile is SATS's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Could The SATS Ltd. (SGX:S58) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
SATS Ltd. (SGX:S58) Insiders Have Been Selling1 month ago | Simply Wall St
Revenue Downgrade: Here's What Analysts Forecast For SATS Ltd. (SGX:S58)Valuation
Is SATS undervalued compared to its fair value and its price relative to the market?
13.89x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: S58 (SGD2.79) is trading above our estimate of fair value (SGD2.19)
Significantly Below Fair Value: S58 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: S58 is poor value based on its PE Ratio (13.9x) compared to the Infrastructure industry average (12x).
PE vs Market: S58 is poor value based on its PE Ratio (13.9x) compared to the SG market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: S58's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: S58 is overvalued based on its PB Ratio (1.9x) compared to the XA Infrastructure industry average (0.8x).
Next Steps
Future Growth
How is SATS forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: S58's earnings are forecast to decline over the next 3 years (-11.6% per year).
Earnings vs Market: S58's earnings are forecast to decline over the next 3 years (-11.6% per year).
High Growth Earnings: S58's earnings are forecast to decline over the next 3 years.
Revenue vs Market: S58's revenue (5% per year) is forecast to grow faster than the SG market (3.8% per year).
High Growth Revenue: S58's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: S58's Return on Equity is forecast to be low in 3 years time (6.1%).
Next Steps
Past Performance
How has SATS performed over the past 5 years?
4.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: S58 has high quality earnings.
Growing Profit Margin: S58's current net profit margins (11.3%) are lower than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: S58's earnings have grown by 4.3% per year over the past 5 years.
Accelerating Growth: S58's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: S58 had negative earnings growth (-14.9%) over the past year, making it difficult to compare to the Infrastructure industry average (-7%).
Return on Equity
High ROE: S58's Return on Equity (13.1%) is considered low.
Next Steps
Financial Health
How is SATS's financial position?
Financial Position Analysis
Short Term Liabilities: S58's short term assets (SGD674.7M) exceed its short term liabilities (SGD448.4M).
Long Term Liabilities: S58's short term assets (SGD674.7M) exceed its long term liabilities (SGD388.9M).
Debt to Equity History and Analysis
Debt Level: S58's debt to equity ratio (5.7%) is considered satisfactory.
Reducing Debt: S58's debt to equity ratio has reduced from 6.9% to 5.7% over the past 5 years.
Debt Coverage: S58's debt is well covered by operating cash flow (265%).
Interest Coverage: S58's interest payments on its debt are well covered by EBIT (1724.7x coverage).
Balance Sheet
Next Steps
Dividend
What is SATS's current dividend yield, its reliability and sustainability?
6.81%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: S58's dividend (6.81%) is higher than the bottom 25% of dividend payers in the SG market (2.79%).
High Dividend: S58's dividend (6.81%) is in the top 25% of dividend payers in the SG market (6.61%)
Stability and Growth of Payments
Stable Dividend: S58's dividend payments have been volatile in the past 10 years.
Growing Dividend: S58's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (94.6%), S58's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: S58's dividends in 3 years are not forecast to be well covered by earnings (131.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.6yrs
Average management tenure
CEO
Alex Hungate (52yo)
6.33yrs
Tenure
S$3,336,800
Compensation
Mr. Alexander Charles Hungate, also known as Alex, has been the Chief Executive Officer and President of SATS Ltd., since January 1, 2014 and has been its Executive Director since July 27, 2011. Mr. Hungat ...
CEO Compensation Analysis
Compensation vs Market: Alex's total compensation ($USD0.00) is below average for companies of similar size in the SG market ($USD1.66M).
Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.33yrs | S$3.34m | 0.30% SGD9.3m | |
| Chief Financial Officer | 2.67yrs | no data | no data | |
| Senior Vice President of Technology | 5.75yrs | no data | no data | |
| Senior VP of Legal & Secretariat | 7.83yrs | no data | no data | |
| Vice President of Public Affairs & Branding | no data | no data | no data | |
| Senior Vice President of Sales & Marketing | 4.33yrs | no data | no data | |
| Chief Human Capital Officer | 8.08yrs | no data | no data | |
| Chairman of Food Solutions | 20.25yrs | S$1.07m | 0.17% SGD5.2m | |
| Chief Executive Officer of Gateway Services | 13.33yrs | no data | no data | |
| Senior Vice President of Integrated Supply Chain | 6.58yrs | no data | no data |
6.6yrs
Average Tenure
59.5yo
Average Age
Experienced Management: S58's management team is seasoned and experienced (6.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.33yrs | S$3.34m | 0.30% SGD9.3m | |
| Independent Non-Executive Director | 5.17yrs | no data | 0.00030% SGD9.4k | |
| Non-Executive Chairman | 3.83yrs | no data | 0.0027% SGD84.5k | |
| Independent Non-Executive Director | 3.83yrs | no data | 0.00030% SGD9.4k | |
| Independent Non-Executive Director | 4.08yrs | no data | 0.0012% SGD38.4k | |
| Independent Non-Executive Director | 1.33yrs | no data | 0.000050% SGD1.6k | |
| Independent Non-Executive Director | 3.17yrs | no data | 0.00046% SGD14.3k | |
| Independent Non-Executive Director | 3.67yrs | no data | 0.00030% SGD9.4k | |
| Independent Non Executive Director | 6.58yrs | no data | 0.00034% SGD10.6k | |
| Independent Non-Executive Director | 3.08yrs | no data | 0.00028% SGD8.7k |
3.8yrs
Average Tenure
62.5yo
Average Age
Experienced Board: S58's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
SATS Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: SATS Ltd.
- Ticker: S58
- Exchange: SGX
- Founded: 1972
- Industry: Airport Services
- Sector: Transportation
- Market Cap: S$3.118b
- Shares outstanding: 1.12b
- Website: https://www.sats.com.sg
Number of Employees
Location
- SATS Ltd.
- 20 Airport Boulevard
- SATS Inflight Catering Centre 1
- Singapore
- 819659
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| S58 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | May 2000 |
| SPAS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2000 |
| W1J | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2000 |
Biography
SATS Ltd., an investment holding company, provides gateway services and food solutions in Singapore, Japan, and internationally. It operates in three segments: Food Solutions, Gateway Services, and Others. The company offers food solutions, including inflight and institutional catering; chilled, frozen, and retort food manufacturing; hospitality; and airline linen and laundry services. It also provides airport and cruise terminal services, including ground and cargo handling, passenger and security, baggage handling, apron, and cargo logistics services. In addition, the company offers airport cargo delivery management, food processing and distribution, business development and marketing, product development, travel facilitation, abattoir, pig auctioning, land logistics, beverage, and remote catering services, as well as technical and management services for agri–food business. Further, it is involved in the management of international cruise terminals; manufacture and sale of frozen foodstuffs; preparation and sale of inflight meals, frozen foods, seafood, meat and rice products, and vegetables and fruits; manufacture and sale of dry ice and ice cubes; sale of refrigerant and packaging material; and provision of manpower to inflight catering operators, as well as premises rental, and housekeeping and other allied services. The company serves airline, hospitality, healthcare, food, and airfreight and logistics industries, as well as government. The company was formerly known as Singapore Airport Terminal Services Limited. SATS Ltd. was founded in 1972 and is based in Singapore.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/25 12:44 |
| End of Day Share Price | 2020/05/22 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.