---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000887595.md"
description: "$SATS(S58.SG)SATS: Why the 15% Drop — and Is the Worst Over?SATS (S58) did not disappoint on revenue; it disappointed on quality of growth. Q1 FY27 revenue rose 11.3% to S$1.68b, but EBITDA grew only 5.9%, squeezing margin to 17.3%. Profit rose just 6% to S$75.1m. The 18.9% decline in associates/JVs earnings added to the concern.The bigger issue is cost inflation and execution. Middle East disruptions, flight cuts, labour/input costs and weaker JV volumes are turning strong cargo growth into weaker incremental profits. That explains the market’s reaction.FY26 fundamentals remain solid: revenue S$6.35b (+9%), PATMI S$285.2m (+17%), EBITDA S$1.15b (+10.6%) and FCF S$215.8m. But leverage deserves watching: debt/EBITDA is ~3.3x and interest coverage ~4.5–5.2x — not dangerous, but hardly comfortable for a low-margin business.At ~$4.04, valuation is around 21x earnings, while the 7-cent dividend yields only ~1.7%. Technically, the 15% breakdown is bearish.View: HOLD. Existing shareholders need not panic, but chasing the rebound looks premature. The thesis remains intact if margins recover; below ~$4, the risk/reward becomes more interesting.Not financial advice."
datetime: "2026-09-07T00:14:50.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000887595.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000887595.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000887595.md)
author: "[FaithAnchor](https://longbridge.com/en/profiles/24833348.md)"
generator: "portal-rs"
---

# $SATS(S58.SG)SATS: Why the 15% Drop — and Is the W…


### Related Stocks

- [S58.SG](https://longbridge.com/en/quote/S58.SG.md)
- [V7QR.SG](https://longbridge.com/en/quote/V7QR.SG.md)
- [V7YR.SG](https://longbridge.com/en/quote/V7YR.SG.md)

## Comments (1)

- **Eunice · 2026-09-07T02:20:27.000Z**: the group still earns about ten percent on book, so the squeeze reads as a quality of growth problem rather than a solvency one, which fits where you landed.


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**