StarHub (CC3) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: 5.49%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.33
• Revenue Growth: 0.83%
• EPS Growth: -16.65%
• Country: SG
• Employees: 1,635
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 1,731,651,500
• 10 Day Avg. Volume: 885,280
• 30 Day Avg. Volume: 1,114,336
• PEG Ratio: 0.94
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 12.81
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 7.41
• 1Y Price Target: $1.20
• Price Target Upside: 6.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: S$1.50 ▲(32.74% Upside)

StarHub's overall stock score is driven by a solid technical analysis showing positive momentum and a fair valuation with an attractive dividend yield. However, financial performance is mixed, with improved profitability but declining revenue growth and high leverage. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Improved Profitability Margins

The significant improvement in gross profit margin indicates better cost management or pricing strategies, enhancing long-term profitability.

Operational Efficiency

Improved EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to sustained profitability and competitive advantage.

Strategic Funding Initiatives

Issuing perpetual securities for strategic funding can strengthen financial position and support growth initiatives, enhancing long-term stability.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can hinder future expansion and market competitiveness, posing a challenge to sustaining business momentum.

High Leverage

Significant leverage indicates potential financial risk, limiting flexibility and increasing vulnerability to economic fluctuations.

Cash Flow Challenges

Reduced free cash flow growth can limit reinvestment potential and strain financial resources, impacting long-term operational capabilities.

StarHub Business Overview & Revenue Model

Company Description

StarHub (CC3) is a leading telecommunications and digital services provider based in Singapore, offering a wide range of services that include mobile, broadband, television, and enterprise solutions. The company operates in several sectors such as telecommunications, media, and information technology. StarHub is committed to delivering innovative solutions to enhance customer experiences, leveraging advanced technologies in its core product offerings.

How the Company Makes Money

StarHub generates revenue through multiple streams, primarily from mobile services, broadband internet subscriptions, and pay television services. The mobile segment includes postpaid and prepaid plans, contributing significantly to its earnings. Broadband services encompass high-speed internet offerings for both residential and business customers, while the pay TV segment provides subscription-based entertainment content. Additionally, StarHub earns revenue from enterprise solutions, including managed services and cybersecurity solutions for businesses. The company also engages in partnerships with content providers and technology firms, enhancing its service offerings and creating bundled packages that attract more customers. These diverse revenue streams, combined with strategic collaborations and a focus on digital transformation, play a crucial role in sustaining StarHub's profitability.

StarHub Financial Statement Overview

Summary

StarHub's financial performance shows a mix of strengths and weaknesses. Profitability margins have improved, but revenue growth has declined, and the company remains highly leveraged. Cash flow challenges are evident, with significant declines in free cash flow growth. The company needs to focus on revenue growth and managing its debt levels to improve financial stability.

Income Statement

StarHub's income statement shows a mixed performance. The gross profit margin improved significantly from 29.52% in 2023 to 53.20% in 2024, indicating better cost management or pricing strategies. However, the revenue growth rate declined by 17.7% in 2024, which is concerning. The net profit margin increased slightly from 5.97% to 6.78%, showing some improvement in profitability. EBIT and EBITDA margins also improved, suggesting better operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.07 in 2024, which, although improved from previous years, still indicates significant leverage and potential financial risk. Return on equity increased to 26.41%, reflecting improved profitability relative to shareholder equity. The equity ratio remains low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 43.62% in 2024, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.26, suggesting that operating cash flow is not significantly higher than net income, which could limit reinvestment potential. The free cash flow to net income ratio is 0.45, indicating moderate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.37B	2.37B	2.33B	2.04B	2.03B
Gross Profit	1.22B	1.26B	700.60M	1.14B	1.07B	470.60M
EBITDA	449.00M	481.30M	393.30M	400.70M	513.20M	539.60M
Net Income	126.30M	160.50M	141.70M	62.20M	149.30M	157.90M
Balance Sheet
Total Assets	3.24B	3.12B	3.04B	3.13B	3.24B	2.93B
Cash, Cash Equivalents and Short-Term Investments	487.10M	539.60M	509.60M	573.60M	832.80M	415.40M
Total Debt	1.45B	1.26B	1.24B	1.27B	1.50B	1.53B
Total Liabilities	2.50B	2.35B	2.33B	2.45B	2.55B	2.50B
Stockholders Equity	583.30M	607.80M	568.80M	530.40M	589.50M	538.30M
Cash Flow
Free Cash Flow	-111.30M	162.20M	185.90M	222.20M	484.60M	344.50M
Operating Cash Flow	294.30M	361.30M	358.60M	383.70M	657.10M	535.70M
Investing Cash Flow	-394.20M	-101.90M	-224.90M	-235.00M	-286.90M	-237.50M
Financing Cash Flow	28.80M	-221.80M	-209.60M	-403.60M	47.80M	-11.40M

StarHub Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CC3, the sentiment is Negative. The current price of 1.13 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.14, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:CC3.

StarHub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJLU	70 Outperform	$3.82B	42.24	3.69%	5.56%	-0.38%	-8.30%
Z74	70 Outperform	$69.98B	17.42	24.43%	3.24%	-0.19%	―
CC3	68 Neutral	$2.01B	16.34	32.00%	5.49%	0.83%	-16.65%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

StarHub Corporate Events

StarHub Issues S$200 Million Perpetual Securities

StarHub Ltd has announced the issuance of S$200,000,000 in 3.35% subordinated perpetual securities under its S$2,000,000,000 Multicurrency Debt Issuance Programme. The securities have received approval for listing on the Singapore Exchange, with trading expected to commence on 15 October 2025. This move is part of StarHub’s strategy to strengthen its financial position and enhance its capital structure, potentially impacting its market standing and providing new opportunities for investors.

StarHub Prices S$200 Million Perpetual Securities for Strategic Funding

StarHub Ltd has announced the pricing of S$200 million in 3.35% subordinated perpetual securities under its S$2 billion Multicurrency Debt Issuance Programme. The proceeds from this issuance will be used for general corporate funding, including new acquisitions, refinancing, and capital expenditures, potentially strengthening StarHub’s financial position and operational capabilities.

StarHub Issues Information Memorandum for Securities Offering

StarHub Ltd. has issued an Information Memorandum related to an offering of securities, which are exempt from registration under the Securities Act. The memorandum is intended for non-U.S. investors and includes strict restrictions on distribution and access, emphasizing compliance with relevant securities laws and regulations.

StarHub Transfers Treasury Shares for Stock Plan

StarHub Ltd has announced the transfer of 95,332 treasury shares as part of fulfilling share awards under its Restricted Stock Plan 2014. This transfer slightly reduced the company’s treasury shares from 0.549% to 0.544% of the total issued shares, reflecting a strategic move to incentivize and retain talent, which could impact the company’s market positioning and stakeholder interests.