Sats Ltd Intrinsic Stock Value – CGS-CIMB Analysts Report Sats’ Acquisition of WFS Presents Attractive Buying Opportunities

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Sats Ltd Intrinsic Stock Value – SATS ($SGX:S58): T a y W e e K u a n g a n d L i m S i e w K h e e o f C G S – C I M B p u b l i s h e d a r e p o r t o n F e b r u a r y 2 2 n d , e x p r e s s i n g t h e i r o p i n i o n o n t h e a c q u i s i t i o n o f W F S b y S a t s . T h e y r e a f f i r m e d S a t s ‘ s t a n c e t h a t i t s a c q u i s i t i o n o f W F S w o u l d s i g n i f i c a n t l y e x p a n d i t s g l o b a l f o o t p r i n t a n d p r o v i d e a d d i t i o n a l r e v e n u e o p p o r t u n i t i e s . T h e r e p o r t a l s o d i s c u s s e d t h e p o t e n t i a l c o s t s a v i n g s t h a t S a t s c o u l d g a i n f r o m t h e a c q u i s i t i o n o f W F S , a s t h e c o m b i n e d e n t i t y w o u l d b e a b l e t o o p t i m i z e i t s o p e r a t i n g c o s t s t h r o u g h e c o n o m i e s o f s c a l e . T h e a n a l y s t s a n t i c i p a t e t h a t t h e i n t e g r a t i o n o f W F S ‘ c a p a b i l i t i e s w o u l d f u r t h e r r e i n f o r c e S a t s ‘ c u r r e n t b u s i n e s s e s , c o n s e q u e n t l y i m p r o v i n g t h e c o m p a n y ‘ s l o n g – t e r m s u s t a i n a b i l i t y a n d p r o f i t a b i l i t y .

M o r e o v e r , t h e r e p o r t h i g h l i g h t e d t h e p o t e n t i a l f o r s y n e r g i s t i c b e n e f i t s f o r S a t s , s u c h a s a c c e s s t o W F S ‘ e x t e n s i v e c l i e n t b a s e a n d i n d u s t r y e x p e r i e n c e . A s t h e c o m b i n e d e n t i t y w o u l d h a v e a l a r g e r m a r k e t s h a r e , S a t s w o u l d b e a b l e t o n e g o t i a t e b e t t e r t e r m s f r o m v e n d o r s a n d s u p p l i e r s , r e s u l t i n g i n c o s t s a v i n g s . A l l t h e s e f a c t o r s m a k e S a t s ‘ a c q u i s i t i o n o f W F S a n a t t r a c t i v e i n v e s t m e n t o p p o r t u n i t y f o r C G S – C I M B a n a l y s t s.

Market Price

CGS-CIMB analysts have reported that SATS LTD‘s acquisition of WFS presents attractive buying opportunities, and current news coverage of the acquisition has been largely positive. On Wednesday, SATS LTD stock opened at SG$2.7 and closed at the same price, a drop of 5.3% from its closing price the previous day of SG$2.8. The analysts stated that, despite the stock dropping, the acquisition of WFS is a strong positive for SATS LTD and could provide investors with good returns in the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Sats Ltd. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sats Ltd. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sats Ltd. More…

Key Ratios Snapshot

Some of the financial key ratios for Sats Ltd are shown below. More…

Analysis – Sats Ltd Intrinsic Stock Value

At GoodWhale, we conducted a fundamental analysis of SATS LTD and reached the conclusion that the intrinsic value of their share is around SG$4.0. This value was calculated using our proprietary Valuation Line, which considers factors such as the company’s financial performance, the performance of its industry and the general economic environment. Currently, shares of SATS LTD are traded at SG$2.7, which is 33.0% lower than its intrinsic value. Therefore, we consider it to be undervalued and recommend investors to buy into it as soon as possible. This could provide great opportunities for investors to get good returns on their investments. More…

Peers

It offers comprehensive services to the aviation industry, ranging from ground handling, catering, and airline operations to aviation engineering and cargo services. SATS Ltd faces competition from Cebu Air Inc, PT Jaya Trishindo Tbk, and Atlas Air Worldwide Holdings Inc, all of which provide similar services in the aviation industry.

– Cebu Air Inc ($PSE:CEB)

Cebu Air Inc is a Philippine-based airline operating flights to several international and domestic destinations. As of 2023, the company has achieved a market capitalization of 24.53 billion USD and a Return on Equity (ROE) of -3124.29%. Cebu Air Inc’s market cap demonstrates its size and financial strength within the industry, while its negative ROE indicates that the company is not generating profits from its shareholders’ investments. Cebu Air Inc’s efforts to increase its profitability are ongoing, through the introduction of new services and the expansion of existing ones.

– PT Jaya Trishindo Tbk ($IDX:HELI)

PT Jaya Trishindo Tbk is an Indonesia-based company that specializes in the production of paper, pulp and packaging products. As of 2023, the company has a market capitalization of 231.54 billion, making it one of the largest publicly traded companies in Indonesia. Its return on equity (ROE) of 5.55% indicates that the company is generating a healthy rate of return for its shareholders. The company’s strong financials and solid market capitalization demonstrate that it is well-positioned to continue to grow and develop in the future.

– Atlas Air Worldwide Holdings Inc ($NASDAQ:AAWW)

Atlas Air Worldwide Holdings Inc is a leading global provider of outsourced aircraft and aviation operating services. It is a publicly traded company with a market capitalization of 2.87 billion as of 2023. The company has maintained a healthy Return on Equity of 13.2%, indicating that it is an efficient and profitable business. Atlas Air Worldwide Holdings Inc provides air cargo charters and related services to customers around the world, and is a leader in providing safe and reliable air cargo services. The company also provides passenger charters and aircraft leasing services, enabling customers to access the most cost-effective solutions for their requirements.

Summary

SATS Ltd‘s acquisition of WFS presents an attractive buying opportunity for investors, as the news of the consolidation has largely been well-received. Furthermore, analysts have given the company a positive outlook following the announcement of the deal.

However, despite the positive sentiment reflected in the news coverage, SATS Ltd’s stock price dipped slightly on the same day of the announcement. Nonetheless, investors remain optimistic and are confident that the long-term value of the company will increase with this move. With its now larger presence in the industry, SATS Ltd is expected to benefit from economies of scale and improved competitive edge, thus making it a worthy long-term investment.