StarHub (CC3) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: 5.54%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.36
• Revenue Growth: 0.83%
• EPS Growth: -16.65%
• Country: SG
• Employees: 1,635
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.02
• Shares Outstanding: 1,731,651,500
• 10 Day Avg. Volume: 885,280
• 30 Day Avg. Volume: 1,114,336
• PEG Ratio: -0.44
• Price to Book (P/B): 6.41
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -78.04
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 7.47
• 1Y Price Target: $1.04
• Price Target Upside: -2.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): $2.32B

• Rating: 45 Neutral
• Price Target: S$1.00 ▼(-5.66% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by weakening 2025 profitability, increased leverage with a thinner equity cushion, and a decline to slightly negative free cash flow. Technicals add further pressure as the stock trades below key moving averages with weak momentum. A relatively high dividend yield provides some support, but a higher P/E limits valuation upside given the current financial headwinds.

Positive Factors

Recurring revenue model

A revenue base built on subscriptions and usage generates predictable, repeatable cash inflows over months and years. This durability supports planning, retention-focused initiatives, and reinvestment in network capacity, reducing revenue volatility versus one-off sales.

Enterprise managed services contracts

Contracted enterprise services create longer-duration, higher-stickiness revenue with potential for multi-year renewals and upsells. That mix improves revenue stability, enhances cross-sell to corporate clients, and supports margin sustainability versus pure consumer retail.

Steady operating cash flow

Consistent operating cash generation indicates the core telecom business converts sales to cash reliably. That underlying cash flow can fund ongoing network maintenance, service delivery, and, over time, enable deleveraging or targeted investments if free cash flow normalizes.

Negative Factors

Rising leverage

A sharper debt load and thinner equity cushion reduce financial flexibility and increase vulnerability to earnings shocks or higher interest rates. Elevated leverage limits capacity for acquisitions, capital spending or dividend support without additional financing risk.

Negative free cash flow

A turn to slightly negative FCF constrains the company's ability to pay down debt, sustain dividends, or reinvest organically without raising new capital. Persistently weak FCF would pressure strategic options and could force tough trade-offs across capex and payouts.

Earnings decline and flat revenue

Stagnant top-line and a marked earnings step-down point to limited growth and margin pressure in a competitive market. Without durable revenue expansion or efficiency gains, profitability recovery may be slow and investment returns constrained over the medium term.

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

Income statement performance is mixed with essentially flat revenue and a sharp step-down in 2025 earnings. The balance sheet is a key concern as leverage rose meaningfully in 2025 while equity declined, reducing financial flexibility. Operating cash flow remains fairly steady, but free cash flow deteriorated to slightly negative in 2025, limiting capacity for dividends and de-leveraging.

Income Statement

Revenue has been essentially flat over the last several years, with a modest decline in 2024–2025. Profitability is mixed: margins were solid in 2024, but 2025 shows a sharp step-down in earnings (net income fell materially versus 2024) and weaker operating profit. Overall, the business looks stable in scale but with pressured earnings power and limited growth momentum.

Balance Sheet

Leverage increased meaningfully in 2025, with total debt rising sharply while equity declined, which weakens financial flexibility. The company historically ran with elevated leverage, and the latest year amplifies that risk profile. Assets are relatively stable, but the thinner equity cushion makes the balance sheet more sensitive to any further profit softness or higher funding costs.

Cash Flow

Operating cash flow has been fairly steady year-to-year, which supports the underlying durability of the business. However, free cash flow deteriorated significantly and turned slightly negative in 2025 after being positive in prior years, pointing to higher spending needs and/or weaker cash conversion. This reduces near-term capacity for dividends, debt reduction, and reinvestment without added borrowing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.35B	2.37B	2.37B	2.33B	2.04B
Gross Profit	625.70M	1.26B	700.60M	1.14B	1.07B
EBITDA	408.20M	481.30M	393.30M	400.70M	513.20M
Net Income	86.40M	160.50M	141.70M	62.20M	149.30M
Balance Sheet
Total Assets	3.61B	3.12B	3.04B	3.13B	3.24B
Cash, Cash Equivalents and Short-Term Investments	857.10M	539.60M	509.60M	573.60M	832.80M
Total Debt	2.08B	1.26B	1.24B	1.27B	1.50B
Total Liabilities	3.16B	2.35B	2.33B	2.45B	2.55B
Stockholders Equity	300.60M	607.80M	568.80M	530.40M	589.50M
Cash Flow
Free Cash Flow	-24.70M	162.20M	185.90M	222.20M	484.60M
Operating Cash Flow	353.80M	361.30M	358.60M	383.70M	657.10M
Investing Cash Flow	-364.80M	-101.90M	-224.90M	-235.00M	-286.90M
Financing Cash Flow	326.80M	-221.80M	-209.60M	-403.60M	47.80M

StarHub Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.06 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.14, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 26.35 is Positive, neither overbought nor oversold. The STOCH value of 6.39 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	$3.84B	42.46	3.69%	5.64%	-0.38%	-8.30%
Z74	70 Outperform	$84.50B	13.65	24.43%	4.00%	-0.19%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CC3	45 Neutral	$1.86B	23.68	32.00%	5.54%	0.83%	-16.65%

StarHub Corporate Events

StarHub Uses Treasury Shares to Fulfil Restricted Stock Awards

StarHub Ltd has transferred 1,993,982 treasury shares on 26 January 2026 to fulfill obligations under its 2014 and 2024 Restricted Stock Plans, which are used to grant share-based awards to employees and executives. Following the transfer, the company’s treasury share holdings decreased from 9,372,395 shares (0.54% of issued shares excluding treasury shares) to 7,378,413 shares (0.42%), representing a S$2.1 million utilisation of treasury stock that reflects ongoing use of equity-based compensation and a modest reduction in its pool of treasury shares available for future corporate purposes.

The most recent analyst rating on (SG:CC3) stock is a Buy with a S$1.30 price target. To see the full list of analyst forecasts on StarHub stock, see the SG:CC3 Stock Forecast page.

StarHub Secures Favourable Tax Ruling on S$200 Million Perpetual Securities

StarHub has obtained a favourable advance tax ruling from the Inland Revenue Authority of Singapore on its S$200 million 3.35% subordinated perpetual securities issued under its S$2 billion multicurrency debt issuance programme. The ruling allows the perpetual securities to be treated as debt securities for Singapore income tax purposes, meaning distributions, including any arrears and additional amounts, will be regarded as interest on indebtedness, which clarifies tax treatment for investors and supports StarHub’s funding flexibility by aligning the instrument’s tax profile with conventional debt.

The most recent analyst rating on (SG:CC3) stock is a Buy with a S$1.30 price target. To see the full list of analyst forecasts on StarHub stock, see the SG:CC3 Stock Forecast page.

StarHub Issues S$300 Million Notes Under Debt Programme

StarHub Ltd has announced the issuance of S$300,000,000 in 2.55% notes due 2035 under its S$2,000,000,000 Multicurrency Debt Issuance Programme. The notes have received approval for listing on the Singapore Exchange Securities Trading Limited, with the listing expected to commence on 27 November 2025, potentially enhancing StarHub’s financial flexibility and market presence.

The most recent analyst rating on (SG:CC3) stock is a Hold with a S$1.19 price target. To see the full list of analyst forecasts on StarHub stock, see the SG:CC3 Stock Forecast page.