Should I buy SATS stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of SATS for more than three years. Each month, tens of thousands of users in Singapore rely on us to help them understand market trends and spot the best investment opportunities. Our analyses are provided for informational purposes only and should not be considered as investment advice. In line with our ethical guidelines, we have never been, and will never be, compensated by SATS.

What is SATS?

How much is SATS stock?

The price of SATS stock is rising this week. Currently trading at S$2.91, SATS has moved down 0.34% over the past 24 hours, but is up 2.83% for the week. The company’s market capitalisation stands at S$4.34 billion, with a robust three-month average trading volume of 6.31 million shares. SATS carries a P/E ratio of 18.19, a dividend yield of 1.03%, and a stock beta of 0.81, reflecting lower volatility compared to the broader market. This stability may appeal to investors seeking balanced exposure in Singapore’s aviation sector.

Our full analysis on SATS stock

We have systematically examined SATS Ltd’s latest earnings, tracked its equity trajectory over the previous three years, and synthesized a range of proprietary analytics—including valuation ratios, technical momentum, sectoral trends, and cross-competitor benchmarking. This multifaceted assessment leverages cutting-edge quantitative models and qualitative market insights, offering a robust lens through which to gauge current and forward prospects. Given this framework, what are the compelling drivers that could position SATS Ltd as a strategic re-entry point into the global aviation and logistics value chain for 2025?

Recent Performance and Market Context

SATS Ltd (SGX: S58) currently trades at S$2.91, reflecting a market capitalization of S$4.34 billion. Over the past year, SATS has outperformed with a robust +14.57% return, even as its six-month price performance (-24.42%) tells a story of sector-wide volatility—largely due to global macroeconomic headwinds and the substantial WFS acquisition integration. This short-term decline has set SATS at an attractive valuation, which, alongside improving fundamentals, presents an appealing risk-reward scenario.

Recent trading volumes have averaged 6.31 million shares over the last quarter, denoting sustained investor interest and liquidity. This vibrancy, though somewhat lower in recent daily sessions at 3.1 million shares, suggests persistent institutional engagement and a favorable environment for price discovery.

Positive catalysts have abounded: Changi Airport’s passenger throughput has returned to 99.1% of pre-pandemic levels, amplifying demand for SATS’s core Food Solutions and Gateway Services business. Strategic integration of WFS has propelled SATS not only into new geographies but also up the value chain of air cargo services, now controlling a dominant share of global volumes. The macroeconomic backdrop is supportive—with IATA forecasting an 8% global passenger increase in 2025 and continued strength in air freight, particularly as supply chains readjust in response to ongoing geopolitical realignments and logistics bottlenecks.

Technical Analysis

A nuanced technical perspective reveals opportunity lurking beneath the surface. The 14-day RSI at 55.21 denotes neutral momentum, neither overbought nor oversold, indicating the absence of negative speculative excess and thus a potential base for accumulation. The stock’s current price sits above the 20-day EMA (2.82), offering a short-term buy signal, even as it remains below its 50-, 100-, and 200-day EMAs—signaling a medium- to longer-term reversion opportunity as the restructuring narrative matures.

While the MACD at -0.02 is modestly bearish, this is offset by the constructive short-term moving average crossover, often a precursor to a broader reversal when fundamentals improve. Key support levels at S$2.85, S$2.79, and S$2.76 have held firm, curtailing further downside and presenting an optimal technical entry band. Overhead resistance at S$2.94 and S$3.03 is within reach, and a breakout above the 50-day EMA (S$2.95) could signal the onset of a new bullish phase. In short, SATS is trading at a technical inflection, with the risk/reward increasingly skewed to the upside for investors with a forward bias.

Fundamental Analysis

SATS’ latest quarter (Q3 FY25) illustrates a company in transformation, underpinned by a blend of organic recovery and acquisition-driven growth. Revenues surged by 12.5% year-on-year to S$1.52 billion, supported by both Gateway Services (+10.1% YoY) and Food Solutions (+21.1% YoY). The aviation sector’s recovery in Asia, particularly with China reopening, has been pivotal, reinforcing SATS’s strategic leverage to high-growth air corridors.

Profitability metrics show remarkable improvement: EBITDA margins expanded to 17.3% (+1.6 pp YoY), and net profit soared by 123.5% to S$70.4 million. Free cash flow, often a key barometer of a business’s financial health, strengthened substantially (+S$73.4 million YoY). EPS sits at S$0.16, with ongoing recovery expected as synergies from WFS are further realized.

In terms of valuation, SATS currently trades at 18.2x TTM earnings and a forward P/E of 18.18. The P/S multiple of 0.76 and price-to-book of 1.72 underscore a relative undervaluation—particularly when weighed against the company’s expanded global footprint and unique position as the world’s largest air cargo handler. The stock’s beta (0.81) suggests relatively defensible price action in turbulent markets.

• Global market leadership post-WFS, with exposure to over 215 stations worldwide.
• Resilient recurring revenue from food and cargo solutions.
• Recognized operational excellence and strong regional brand equity.
• Powerful integration pipeline with S$92 million of S$100 million targeted WFS synergies already delivered.

These factors combine to justify renewed institutional and retail interest, with fundamentals now primed for further rerating as integration and efficiency gains flow to the bottom line.

Volume and Liquidity

Strong volume is a hallmark of market confidence, and in SATS’ case, consistent 3-month average volumes north of 6 million shares demonstrate both liquidity and healthy turnover. This ensures dynamic bid-ask spreads suited to both retail and institutional investors. The recent moderation to ~3.1 million shares parallels broader consolidation across the Singapore market, but volumes remain highly supportive of any strategic accumulation or portfolio reweighting.

With a market float and capital structure that facilitate ready price formation, SATS is favorably positioned for valuation upgrades as incoming catalysts play out.

Catalysts and Positive Outlook

• Full realisation of WFS synergies: With S$92 million out of S$100 million already achieved, further integration is expected to drive EBITDA and margin expansion through fiscal 2025.
• Aviation sector tailwinds: Anticipated 8%+ passenger growth globally (IATA) and continued normalization of air travel underpin resilient revenue forecasts for both food and gateway services.
• Global cargo leadership: Ongoing trade realignment, ocean-to-air modal shifts (e.g., Red Sea disruptions), and e-commerce proliferation are secular tailwinds for air cargo logistics—an area where SATS now leads.
• Innovation and partnerships: Renewed cooperation with key global players (Atlas Air, acquisitions in Thailand and Amsterdam) extend the value proposition and operational scale.
• ESG and brand integration: The unified SATS Group identity amplifies both global reach and customer loyalty, offering additional value as corporates and institutional investors increasingly prize sustainability alignment.

Overall, SATS’s ability to couple organic and inorganic growth with operational excellence sets it apart at a time when competitors scramble to regain pre-pandemic scale.

Investment Strategies

• Short term: Current consolidation near multi-quarter lows (S$2.91, close to robust support) provides a low-risk technical entry point for traders anticipating a rebound on pending earnings momentum or positive integration updates.
• Medium term: With support/resistance clustered near recent price points and a MACD poised for reversal, any break of the 50-day EMA (S$2.95) could spark a medium-term rally, especially if Q4 or FY25 results validate management’s integration and synergy trajectory.
• Long term: For strategic investors, SATS’s transformation into a globally integrated cargo and ground handling powerhouse, with proven cash flow generation, supports a constructive view on multi-year capital appreciation. The low dividend yield (1.03%) is offset by high reinvestment in growth and EPS compounding.

Current pricing, technical structure, and operational turnaround combine to present SATS as favorably positioned at a technical low with an attractive risk/reward profile—particularly ahead of upcoming catalysts such as further WFS synergy realization and aviation sector upturn.

Is It the Right Time to Buy SATS?

• Market leadership in a rapidly recovering global aviation sector
• Solid revenue and profit growth supported by structural and cyclical drivers
• Clear integration synergies with demonstrable operational benefits post-WFS acquisition
• Attractive, justifiable valuation at a multi-period technical low
• Strong liquidity and market confidence with robust institutional and retail engagement
• Pipeline of forward catalysts including additional cost synergies, rising travel volumes, and innovation-driven growth

The prevailing technical, fundamental, and market context appears to converge favorably, suggesting that SATS is entering a renewed phase of institutional interest and potential price recovery. While short-term volatility remains possible given sector dynamics and macro events, the company’s inherent strengths and ongoing transformation seem to justify a positive outlook. For investors seeking exposure to the global aviation recovery and the resilient backbone of air logistics, SATS offers an investment case that appears particularly compelling at current levels.

In sum, SATS seems poised at the threshold of a new growth trajectory—making this a moment for discerning investors to consider the stock as a strategic portfolio addition, with a risk/reward profile that amply rewards conviction and patience.

How to buy SATS stock in Singapore?

Buying SATS Ltd (S58) shares online is a simple and secure process for retail investors in Singapore when using a regulated broker. You can choose between two main methods: buying shares directly (spot purchase) for long-term ownership, or trading contracts for difference (CFDs) for those seeking leverage and flexibility. Each method has its own features and risks. Before opening an account, it's important to compare broker conditions and fees—see our broker comparison further down the page for details.

Spot Buying

A cash purchase, or spot buying, means acquiring SATS shares outright on the Singapore Exchange (SGX) via your chosen broker. As a shareholder, you’ll be entitled to dividends and voting rights. Typical fees for Singapore investors range from a flat S$5 to S$25 per trade, or a small percentage of the transaction amount (often around 0.08–0.18%).

Example

If the SATS share price is S$2.91, a S$1,000 stake lets you buy about 342 shares (S$1,000 minus S$5 brokerage fee = S$995, divided by S$2.91 = 341.9, rounded down to 342).
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth about S$1,100 (342 shares × S$3.20).
Result: S$100 gross gain, or +10% on your investment (before additional fees or taxes).

Trading via CFD

CFDs (Contracts for Difference) let you speculate on SATS’s share price without actually owning the stock. CFD trading is popular for its leverage and ability to profit from both rising or falling prices. Main costs include the spread (difference between buy/sell price) and overnight financing if you hold positions beyond the trading day.

Example

You open a CFD position on SATS with S$1,000 and 5x leverage. This gives you S$5,000 in market exposure.
✔️ Gain scenario:
If SATS shares climb 8%, your position gains 8% × 5 = 40%. Your S$1,000 investment turns into S$1,400 (excluding spreads and overnight fees).
Result: S$400 gain, on a S$1,000 stake, but note leveraged losses can also exceed your initial deposit.

Final Advice

Before investing, carefully compare each broker’s fees, minimums, and support for Singapore-listed shares. Consider whether spot buying or CFD trading better matches your risk tolerance, investment horizon, and financial objectives. Your choice will depend on whether you seek long-term ownership or prefer flexible, leveraged trading. For precise comparisons, consult the broker comparator tool further down the page to choose the option best suited to your investment journey.

Our 7 tips for buying SATS stock

The latest news about SATS

SATS stock rises 2.83% in the past week on strong Q3 financial performance. SATS Ltd's share price has shown a notable improvement, appreciating by 2.83% over the last seven days, even as it contends with a 24.42% decline over six months. This near-term positive momentum is underpinned by robust third-quarter results for FY25, in which the company posted a 12.5% increase in revenue year-on-year to S$1.52 billion and a net profit jump of 123.5% to S$70.4 million. These figures reflect enhanced operational leverage and successful cost management, particularly as Singapore’s aviation sector continues its strong recovery. For Singaporean investors, this trend signals renewed market confidence following a challenging period.

Operating performance driven by recovery in Changi passenger volumes and regional inflight meal demand. SATS’ Food Solutions segment experienced a 21.1% year-on-year growth, buoyed by the resurgence of international travel through Changi Airport, which has recovered to over 99% of pre-pandemic traffic. The rebound in passenger numbers directly benefits SATS’ core Singapore operations, especially as regional carriers ramp up capacity and demand for inflight catering rises. With Asia’s travel ecosystem approaching full normalization, SATS is strategically positioned to benefit from this renewed flow of passengers and cargo through Singapore, reinforcing its role as a linchpin of the local aviation ecosystem.

Integration of WFS delivers significant synergy gains, moving SATS closer to cost-saving and margin targets. Following its transformative S$1.9 billion acquisition of Worldwide Flight Services, SATS reports that it has already secured approximately S$92 million out of its targeted S$100 million in integration synergies. These include S$61 million in commercial and S$31 million in operational efficiencies. Rapid progress towards achieving these mainstream integration targets has boosted investor sentiment, reflecting the successful execution of the company’s global scale-up strategy, which greatly enhances Singapore’s role as an international air cargo hub and increases the group's resilience and growth prospects.

SATS enhances brand identity and regional footprint through rebranding and strategic partnerships. The recent global rebranding of SATS and WFS under a unified visual identity underscores management's commitment to a fully integrated global group, helping to drive brand recognition and operational cohesion across its extensive network. Strategic actions such as acquiring the remaining 15% stake in SATS Food Solutions (Thailand) and forging new cooperation agreements, including a Memorandum of Understanding with Atlas Air, further consolidate SATS' influence in Asia and beyond, strengthening Singapore’s position as a gateway for global trade and logistics.

Technical analysis indicates short-term gains, but longer-term signals remain mixed for SATS stock. While the stock price has recently traded above its 20-day EMA due to the surge in positive news, longer-term moving averages (50-, 100-, and 200-day EMAs) remain bearish, highlighting lingering investor caution after months of volatility. The RSI at 55.21 is neutral, and a MACD sell signal persists, suggesting that while Singapore market participants are responding to short-term operational wins and visible integration success, sustained upward movement will likely depend on the company’s continued delivery of synergies and regional growth, as well as broader stability in the aviation sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.