SGX:S58

Stock Analysis Report

Executive Summary

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


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

-16.6%

S58

-2.3%

SG Infrastructure

-4.9%

SG Market


1 Year Return

-45.7%

S58

-29.2%

SG Infrastructure

-29.0%

SG Market

Return vs Industry: S58 underperformed the SG Infrastructure industry which returned -28.9% over the past year.

Return vs Market: S58 underperformed the SG Market which returned -27.1% over the past year.


Shareholder returns

S58IndustryMarket
7 Day-16.6%-2.3%-4.9%
30 Day-30.9%-15.4%-22.2%
90 Day-44.5%-24.6%-27.6%
1 Year-43.5%-45.7%-27.1%-29.2%-26.0%-29.0%
3 Year-36.2%-42.7%-20.0%-26.4%-21.3%-29.7%
5 Year7.3%-10.5%-24.4%-33.8%-20.3%-33.9%

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

Valuation

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

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S58 (SGD2.82) is trading below our estimate of fair value (SGD4.49)

Significantly Below Fair Value: S58 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: S58 is poor value based on its PE Ratio (14x) compared to the Infrastructure industry average (9.7x).

PE vs Market: S58 is poor value based on its PE Ratio (14x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: S58 is poor value based on its PEG Ratio (1.5x)


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 11 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S58's forecast earnings growth (9.1% per year) is above the savings rate (1.8%).

Earnings vs Market: S58's earnings (9.1% per year) are forecast to grow faster than the SG market (4.6% per year).

High Growth Earnings: S58's earnings are forecast to grow, but not significantly.

Revenue vs Market: S58's revenue (3.9% per year) is forecast to grow slower than the SG market (4% per year).

High Growth Revenue: S58's revenue (3.9% 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 (13.6%).


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 (2.6%).


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

Inventory Level: S58 has a high level of physical assets or inventory.

Debt Coverage by Assets: S58's debt is covered by short term assets (assets are 6.5x debt).


Next Steps

Dividend

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

6.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S58's dividend (6.74%) is higher than the bottom 25% of dividend payers in the SG market (3.23%).

High Dividend: S58's dividend (6.74%) is low compared to the top 25% of dividend payers in the SG market (7.06%).


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 forecast to be covered by earnings (88.9% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Alex Hungate (52yo)

6.25s

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 ($USD0.00) is below average for companies of similar size in the SG market ($USD1.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Hungate
President6.25yrsS$3.34m0.30% SGD9.9m
Kok Khong Seah
Chief Financial Officer2.58yrsno datano data
Poh Tan
Senior Vice President of Technology5.67yrsno datano data
Prema Subramaniam
Senior VP of Legal & Secretariat7.75yrsno datano data
Carolyn Khiu
Vice President of Public Affairs & Brandingno datano datano data
Cheng Chi
Senior Vice President of Sales & Marketing4.25yrsno datano data
Li Tan
Chief Human Capital Officer8yrsno datano data
Chuan Lye Tan
Chairman of Food Solutions20.17yrsS$1.07m0.17% SGD5.6m
Yacoob Bin Ahmed Piperdi
Chief Executive Officer of Gateway Services13.25yrsno datano data
Yin Chan
Senior Vice President of Integrated Supply Chain6.5yrsno datano data

6.5yrs

Average Tenure

59.5yo

Average Age

Experienced Management: S58's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Hungate
President6.25yrsS$3.34m0.30% SGD9.9m
Pak Kuan Kok
Independent Non-Executive Director5.08yrsno data0.00030% SGD10.0k
Yiu Kiang Goh
Non-Executive Chairman3.75yrsno data0.0027% SGD90.3k
Kim Yap
Independent Non-Executive Director3.75yrsno data0.00030% SGD10.0k
Soo Nan Tan
Independent Non-Executive Director4yrsno data0.0012% SGD41.0k
Hong Wei Lee
Independent Non-Executive Director1.25yrsno data0.000050% SGD1.7k
Kim Huat Chia
Independent Non-Executive Director3.08yrsno data0.00046% SGD15.3k
Achal Agarwal
Independent Non-Executive Director3.58yrsno data0.00030% SGD10.0k
Chee Meng Yap
Independent Non Executive Director6.5yrsno data0.00034% SGD11.3k
Soon Neo Tan
Independent Non-Executive Director3yrsno data0.00028% SGD9.3k

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$3.332b
  • 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. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 12:41
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.