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    Assessing SATS (SGX:S58) Valuation After Profit Jump, Cargo Growth, and Increased Shareholder Payouts

    Simply Wall St·12/14/2025 23:22:14
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    SATS (SGX:S58) just posted a 13% year on year profit jump in Q2 FY2026, supported by stronger cargo operations, higher interim dividends, and ongoing share buybacks that underline managements confidence in future cash generation.

    See our latest analysis for SATS.

    The stronger cargo backdrop, higher dividends, and tech upgrades at Worldwide Flight Services seem to be feeding into sentiment. The 90 day share price return is 6.75% even as the one year total shareholder return is still slightly negative, suggesting momentum is gradually rebuilding from a weak start to the year.

    If SATS has you rethinking transport and logistics exposure, you might also want to explore auto manufacturers for other moving parts of the global mobility story.

    With profits rising, dividends growing, and the share price still below analyst targets, are investors overlooking SATS value and earnings runway, or has the recent rebound already priced in the next leg of growth?

    Most Popular Narrative Narrative: 13.5% Undervalued

    With SATS last closing at SGD 3.48 against a narrative fair value of about SGD 4.02, the story leans toward upside driven by improving fundamentals.

    Sustained growth in global air travel, particularly in Asia-Pacific, is driving increased demand for SATS's core services in inflight catering and cargo handling, as evidenced by double-digit cargo tonnage growth and rising aviation meal volumes. This ongoing passenger and cargo industry recovery is expected to provide robust tailwinds for revenue and overall top-line growth.

    Read the complete narrative.

    Curious how steady volume recovery, rising margins, and a richer future earnings multiple combine into that upside case? The full narrative explains the expected growth runway, potential profitability improvement, and the valuation assumptions used in arriving at this fair value estimate.

    Result: Fair Value of $4.02 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, currency swings and higher than expected labor and capital costs could quickly compress margins and derail the expected expansion of the earnings multiple.

    Find out about the key risks to this SATS narrative.

    Build Your Own SATS Narrative

    If you would rather dig into the numbers yourself and challenge this view, you can build a personalised SATS story in just minutes: Do it your way.

    A great starting point for your SATS research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.