SGX:S58

Stock Analysis Report

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Executive Summary

SATS Ltd., an investment holding company, provides gateway services and food solutions in Singapore, Japan, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

S58

-1.4%

SG Infrastructure

-1.3%

SG Market


1 Year Return

-37.3%

S58

-16.7%

SG Infrastructure

-21.4%

SG Market

Return vs Industry: S58 underperformed the SG Infrastructure industry which returned -16.7% over the past year.

Return vs Market: S58 underperformed the SG Market which returned -21.4% over the past year.


Shareholder returns

S58IndustryMarket
7 Day2.0%-1.4%-1.3%
30 Day13.4%-3.1%0.9%
90 Day10.2%-2.5%-3.4%
1 Year-36.5%-37.3%-14.0%-16.7%-17.1%-21.4%
3 Year-27.1%-33.1%-19.0%-26.3%-19.9%-29.6%
5 Year-3.7%-17.6%-3.8%-17.4%-6.4%-23.4%

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

Valuation

Is SATS undervalued compared to its fair value and its price relative to the market?

49.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: S58 (SGD3.13) is trading above our estimate of fair value (SGD1.48)

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 (49.9x) compared to the XA Infrastructure industry average (16.7x).

PE vs Market: S58 is poor value based on its PE Ratio (49.9x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: S58 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: S58 is overvalued based on its PB Ratio (2.2x) compared to the XA Infrastructure industry average (0.9x).


Next Steps

Future Growth

How is SATS forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

103.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S58's forecast earnings growth (103.6% per year) is above the savings rate (2.2%).

Earnings vs Market: S58's earnings (103.6% per year) are forecast to grow faster than the SG market (21.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: S58's revenue (17.7% per year) is forecast to grow faster than the SG market (6.7% per year).

High Growth Revenue: S58's revenue (17.7% 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 (7.9%).


Next Steps

  • Explore growth companies in the Transportation industry.

Past Performance

How has SATS performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S58 has a large one-off loss of SGD18.6M impacting its June 30 2020 financial results.

Growing Profit Margin: S58's current net profit margins (4.2%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: S58's earnings have declined by 3.2% 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 (-70.7%) over the past year, making it difficult to compare to the Infrastructure industry average (-14.1%).


Return on Equity

High ROE: S58's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is SATS's financial position?


Financial Position Analysis

Short Term Liabilities: S58's short term assets (SGD1.3B) exceed its short term liabilities (SGD663.5M).

Long Term Liabilities: S58's short term assets (SGD1.3B) exceed its long term liabilities (SGD770.3M).


Debt to Equity History and Analysis

Debt Level: S58's debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: S58's debt to equity ratio has increased from 6.5% to 31.9% over the past 5 years.

Debt Coverage: S58's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: S58's interest payments on its debt are well covered by EBIT (35.7x coverage).


Balance Sheet


Next Steps

Dividend

What is SATS current dividend yield, its reliability and sustainability?

1.88%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate S58's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate S58's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if S58's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if S58's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: S58 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S58's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Alex Hungate (53 yo)

6.75yrs

Tenure

S$2,955,066

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 ($USD2.18M) is about average for companies of similar size in the SG market ($USD2.13M).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Charles Hungate
President6.75yrsS$2.96m0.32%
SGD 11.1m
Kok Khong Seah
Chief Financial Officer3.08yrsno datano data
Poh Tan
Senior Vice President of Technology6.17yrsno datano data
Prema Subramaniam
Senior VP of Legal & Secretariat8.25yrsno datano data
Carolyn Khiu
Vice President of Public Affairs & Brandingno datano datano data
Cheng Chi
Senior Vice President of Sales & Marketing4.75yrsno datano data
Li Tan
Chief Human Capital Officer8.5yrsno datano data
Chuan Lye Tan
Chairman of Food Solutions20.67yrsS$1.07m0%
SGD 0
Yacoob Bin Ahmed Piperdi
Chief Executive Officer of Gateway Services13.75yrsno datano data
Yin Chan
Senior Vice President of Integrated Supply Chain7yrsno datano data
Chun Ching
Senior Vice President of Institutional Catering5.33yrsno datano data
Siang Goh
Chief Operating Officer of Singapore Food Solutions6.25yrsno datano data

6.8yrs

Average Tenure

60.5yo

Average Age

Experienced Management: S58's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Charles Hungate
President6.75yrsS$2.96m0.32%
SGD 11.1m
Pak Kuan Kok
Independent Non-Executive Director5.58yrsS$117.69k0.0014%
SGD 47.9k
Yiu Kiang Goh
Independent Non-Executive Chairman4.25yrsS$254.55k0.0077%
SGD 268.3k
Kim Yap
Independent Non-Executive Director4.25yrsS$118.70k0.0014%
SGD 48.2k
Soo Nan Tan
Independent Non-Executive Director4.5yrsS$133.38k0.0043%
SGD 148.5k
Hong Wei Lee
Independent Non-Executive Director1.75yrsS$67.24k0.00066%
SGD 23.1k
Kim Huat Chia
Independent Non-Executive Director3.58yrsS$109.25k0.0014%
SGD 50.3k
Achal Agarwal
Independent Non-Executive Director4.08yrsS$107.35k0.0038%
SGD 133.1k
Chee Meng Yap
Independent Non Executive Director7yrsS$134.36k0.0015%
SGD 54.1k
Soon Neo Tan
Independent Non-Executive Director3.5yrsS$119.16k0.0014%
SGD 47.2k

4.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: S58's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: S58 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$3.493b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S58SGX (Singapore Exchange)YesOrdinary SharesSGSGDMay 2000
SPAS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2000
W1JDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 12:38
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.