Operating Margin

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Price: 3.84 SGD -0.78% Market Closed

Market Cap: S$5.7B

8.5%

Improving

by 3.8%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

8.5%

Operating Income

S$518.2m

Revenue

S$6.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

8.5%

Operating Income

S$518.2m

Revenue

S$6.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
SG		SATS Ltd SGX:S58	5.7B SGD	Loading...
ES		Aena SME SA MAD:AENA	38.1B EUR	Loading...
TH		Airports of Thailand PCL SET:AOT	746.4B THB	Loading...
FR		Aeroports de Paris SA PAR:ADP	10.9B EUR	Loading...
MX		Grupo Aeroportuario del Pacifico SAB de CV BMV:GAPB	208.9B MXN	Loading...
CN		Shanghai International Airport Co Ltd SSE:600009	77B CNY	Loading...
IN		GMR Airports Ltd NSE:GMRAIRPORT	993B INR	Loading...
CH		Flughafen Zuerich AG SIX:FHZN	7.4B CHF	Loading...
MX		Grupo Aeroportuario del Sureste SAB de CV BMV:ASURB	165.3B MXN	Loading...
DE		Fraport AG Frankfurt Airport Services Worldwide XETRA:FRA	7.1B EUR	Loading...
DE	F	Fraport Frankfurt Airport Services Worldwide AG XMUN:FRA	7B EUR	Loading...

Market Distribution

Min	-206 310 181.2%
30th Percentile	0.1%
Median	4.8%
70th Percentile	10.4%
Max	4 310 633.3%

Other Profitability Ratios

SATS Ltd
Glance View

Economic Moat

None

Market Cap

5.7B SGD

Industry

Transportation Infrastructure

SATS Ltd., headquartered in Singapore, is a leading provider of gateway services and food solutions, with a core focus on aviation. Established in 1972, SATS has evolved to become a crucial cog in the aviation ecosystem, operating across Asia Pacific and the Middle East. It all began with handling airline catering and ground services, but the company quickly expanded its operations to become the region's largest provider of such services. The company’s operations are designed around a seamless integration of ground handling services, from managing luggage and cargo to overseeing passenger amenities, ensuring efficient and smooth airport operations. Not resting on its laurels, SATS has diversified its revenue streams by venturing into non-aviation sectors such as hospitality, healthcare, and logistics. This strategic expansion is driven by its robust food solutions business, which provides catering and food distribution services not only to airlines but also to institutions and retail chains. By leveraging decades of experience and efficient logistics networks, SATS has positioned itself as a key player in delivering both operational excellence and culinary creativity across its varied service lines. Through this multifaceted approach, SATS captures a diverse customer base and ensures a stable financial performance even amidst fluctuating aviation demands.

View S58 Analysis

S58 Intrinsic Value

Undervaluation 38%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

SATS Ltd
SGX:S58

Peer Comparison

Market Distribution

Other Profitability Ratios

SATS Ltd
Glance View

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SATS Ltd SGX:S58