StarHub (CC3) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: 5.34%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.38
• Revenue Growth: 0.83%
• EPS Growth: -16.65%
• Country: SG
• Employees: 1,635
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.01
• 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: 1.71
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 7.41
• 1Y Price Target: $1.19
• Price Target Upside: 2.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: S$1.50 ▲(29.31% 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 Ltd, an integrated info communications company, provides communications, entertainment, and digital solutions for individuals and corporations in Singapore. The company operates in four segments: Telecommunications, Cyber Security, High Security Assurance Product, and Regional Information Communication Technology. The company provides television subscription and broadcasting services; broadband access, high speed wholesale broadband, and information security systems integration services; security consultancy services; information security and network security surveillance services; petrol station retail and fuel logistics management solutions; hospital information systems solutions; business application solutions and related services; data center and business continuity services; healthcare information technology products and services; and healthcare information technology software, research and development, and support services. It also engages in computer systems integration, other professional, scientific, and technical activities; development and supply of data security products and components; provision of information security and network security surveillance services; sales of information technology security related products; implementation of information communication technology projects; and system integration, supply and implementation of hardware and software solutions, and provision of maintenance services. Further, the company is involved in the development and provision of software as a service application; provision of architecting ICT solutions and project management services; and investment holding and provision of management services. The company was incorporated in 1998 and is headquartered in Singapore. StarHub Ltd is a subsidiary of Asia Mobile Holdings Pte. Ltd.

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 health is characterized by stable revenue and improving profit margins, reflecting effective cost management. The balance sheet shows strong profitability with a high return on equity, although the high leverage ratio is a potential risk factor. Cash flow stability is evident, but the decline in free cash flow suggests a need for cautious capital management.

Income Statement

StarHub's income statement reveals a stable revenue with a slight decline from $2.373 billion in 2023 to $2.368 billion in 2024. The gross profit margin improved significantly from 29.5% in 2023 to 53.2% in 2024, indicating better cost management. The net profit margin also improved from 6.0% to 6.8%, showing enhanced profitability. However, the EBIT margin slightly decreased from 9.5% to 9.5%, and the EBITDA margin increased from 16.6% to 20.4%, showing mixed results in operational efficiency.

Balance Sheet

The balance sheet indicates a debt-to-equity ratio of 2.08, suggesting a high leverage position, which could pose a risk in volatile market conditions. The return on equity improved to 26.4% in 2024, up from 24.9% in 2023, reflecting better profitability. The equity ratio stands at 19.5%, indicating a moderate level of equity financing. Overall, while profitability is strong, the high debt level remains a concern.

Cash Flow

Operating cash flow showed stability, increasing slightly from $358.6 million in 2023 to $361.3 million in 2024. Free cash flow decreased from $185.9 million to $162.2 million, indicating a decline in cash available after capital expenditures. The operating cash flow to net income ratio remains healthy at 2.25, suggesting efficient cash generation relative to net income. However, the decrease in free cash flow highlights potential challenges in sustaining cash reserves.

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: Positive
• Last Price: 1.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CC3, the sentiment is Positive. The current price of 1.16 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.14, and above the 200-day MA of 1.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:CC3.

StarHub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJLU	―	$3.76B	39.39	3.90%	5.47%	-1.04%	-7.55%
Z74	―	$71.13B	17.71	16.56%	3.67%	0.13%	404.98%
CC3	―	$1.94B	15.78	32.00%	5.34%	0.83%	-16.65%
Sector *	―	$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.