StarHub (CC3) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: 5.49%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.33
• Revenue Growth: 0.83%
• EPS Growth: -16.65%
• Country: SG
• Employees: 1,635
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 0.01
• Shares Outstanding: 1,731,651,500
• 10 Day Avg. Volume: 1,907,680
• 30 Day Avg. Volume: 2,210,880
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 6.91
• 1Y Price Target: $1.34
• Price Target Upside: 17.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: S$1.50 ▲(31.58% Upside)

StarHub's overall stock score reflects a balanced view of its financial performance, technical analysis, and valuation. The company's strong profitability and attractive dividend yield are significant positives. However, the high leverage ratio and short-term bearish technical indicators present potential risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Cybersecurity Growth

StarHub's cybersecurity venture Ensign is a profitable business and has the potential to grow at a CAGR of 20% over 2025-2027.

Digital Transformation

StarHub is building a digital platform with multi-cloud capability through its DARE+ transformation programme, for which meaningful realisation will start once costs taper off.

Dividend Yield

The stock is trading below its 5-year average while offering a yield of approximately 6%.

Negative Factors

Competition in Mobile

Irrational competition in the mobile space and potential rise in losses in cybersecurity and regional ICT services are key risks.

Financial Performance

Results were below expectations with 1Q25 revenue and EBITDA significantly lower than forecast.

Mobile Price Competition

Mobile price competition is intensifying across categories and is expected to worsen with the upcoming spectrum payment.

StarHub Business Overview & Revenue Model

Company Description

StarHub (CC3) is a leading telecommunications and digital services provider based in Singapore. The company offers a comprehensive range of services including mobile, broadband, and pay television. StarHub serves both consumer and enterprise segments, providing innovative solutions that cater to the communication and entertainment needs of its customers. The company is known for its cutting-edge technology, extensive network coverage, and commitment to delivering exceptional service quality.

How the Company Makes Money

StarHub generates revenue primarily through its telecommunications services, which include mobile voice and data plans, fixed broadband, and pay television subscriptions. The company also earns income from enterprise solutions, offering services such as cloud computing, cybersecurity, and managed services to businesses. Additionally, StarHub partners with global technology and content providers to offer bundled services and exclusive content, enhancing its value proposition to customers. These partnerships and a diversified service portfolio contribute significantly to the company's earnings.

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. Overall, the company demonstrates resilience with areas for improvement in debt 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	2.37B	2.33B	2.04B	2.03B
Gross Profit	1.26B	700.60M	1.14B	1.07B	470.60M
EBITDA	481.30M	393.30M	400.70M	513.20M	539.60M
Net Income	160.50M	141.70M	62.20M	149.30M	157.90M
Balance Sheet
Total Assets	3.12B	3.04B	3.13B	3.24B	2.93B
Cash, Cash Equivalents and Short-Term Investments	539.60M	509.60M	573.60M	832.80M	415.40M
Total Debt	1.26B	1.24B	1.27B	1.50B	1.53B
Total Liabilities	2.35B	2.33B	2.45B	2.55B	2.50B
Stockholders Equity	607.80M	568.80M	530.40M	589.50M	338.40M
Cash Flow
Free Cash Flow	162.20M	185.90M	222.20M	484.60M	344.50M
Operating Cash Flow	361.30M	358.60M	383.70M	657.10M	535.70M
Investing Cash Flow	-101.90M	-224.90M	-235.00M	-286.90M	-237.50M
Financing Cash Flow	-221.80M	-209.60M	-403.60M	47.80M	-11.40M

StarHub Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.14 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.16, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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
CC3	68 Neutral	$1.92B	15.64	32.00%	5.49%	0.83%	-16.65%
Sector *	60 Neutral	$44.01B	4.13	-12.81%	4.14%	1.86%	-42.71%
NETLF	―	$2.84B	39.97	3.90%	―	―	―
SNGNF	―	$55.34B	18.66	16.56%	4.20%	―	―
T41	―	S$77.12M	10.43	22.23%	―	―	―

StarHub Corporate Events

StarHub Transfers Treasury Shares for Stock Plan

StarHub Ltd has announced the transfer of 410,200 treasury shares to fulfill share awards under the StarHub Restricted Stock Plan 2024. This transfer reduces the company’s treasury shares from 9,877,927 to 9,467,727, slightly decreasing the percentage of treasury shares against the total issued shares from 0.57% to 0.54%. The total value of the transferred shares is S$433,190.42, reflecting the company’s ongoing commitment to its stock plan and potentially impacting shareholder value.

The most recent analyst rating on (SG:CC3) stock is a Hold 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 Ltd Conducts 27th Annual General Meeting

StarHub Ltd held its twenty-seventh Annual General Meeting (AGM) at the Suntec Singapore Convention & Exhibition Centre, where a quorum was confirmed, and the meeting was declared open by Chairman Olivier Lim. The AGM served as a platform for introducing board members and key executives, while also addressing the formalities of the meeting, such as the reading of the AGM Notice, highlighting the company’s commitment to transparency and governance.

The most recent analyst rating on (SG:CC3) stock is a Hold 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.