StarHub (CC3) AI Stock Analysis

• Market Cap: $1.96B
• Dividend Yield: 5.27%
• Average Volume (3M): 752.00K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.30
• Revenue Growth: -0.23%
• EPS Growth: 11.17%
• Country: SG
• Employees: 1,635
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.02
• Shares Outstanding: 1,731,651,500
• 10 Day Avg. Volume: 707,200
• 30 Day Avg. Volume: 751,996
• PEG Ratio: 4.27
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.24
• Price Target Upside: 9.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: S$1.50 ▲(32.74%Upside)

StarHub exhibits stable financial performance with improving profit margins and a high return on equity, though the high leverage ratio poses a risk. The stock's technical indicators suggest mixed momentum, but the valuation is appealing with a moderate P/E ratio and high dividend yield. These factors contribute to a solid overall stock score, indicating a balanced investment with potential income and moderate growth prospects.

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.

Stock Valuation

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

Negative Factors

Mobile Competition

Mobile ARPU continues to suffer from intense competition, with a quarterly decline of 4.5%.

Quarterly Performance

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

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. The primary revenue source is its mobile services, which include voice, data, and value-added services provided to both consumer and enterprise customers. Additionally, the company earns income from its broadband and pay television services, offering subscription-based plans to residential and business customers. StarHub also provides enterprise solutions, including managed services, cloud computing, and cybersecurity services, contributing significantly to its earnings. Strategic partnerships with content providers and technology companies enhance its service offerings, further driving revenue growth. The company’s diverse portfolio and integrated service approach enable it to capture a broad customer base and create multiple avenues for revenue generation.

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
	EBIT
224.40M	226.40M	154.70M	231.80M	192.70M
	EBITDA
481.30M	393.30M	400.70M	513.20M	539.60M
	Net Income Common Stockholders
160.50M	141.70M	62.20M	149.30M	157.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
539.60M	509.60M	573.60M	832.80M	415.40M
	Total Assets
3.12B	3.04B	3.13B	3.24B	2.93B
	Total Debt
1.26B	1.24B	1.27B	1.50B	1.53B
	Net Debt
721.10M	741.70M	695.30M	663.90M	1.11B
	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: 1.13
• 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 1.14, below the 50-day MA of 1.15, and below the 200-day MA of 1.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 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
CC3	70 Outperform	$1.96B	12.71	40.65%	5.27%	-0.23%	11.17%
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
NETLF		$2.63B	36.78	3.90%	5.95%	―	―
SNGNF		$50.00B	16.05	16.56%	4.29%	―	―
T41		S$44.00M	10.54	12.53%	1.29%	―	―

StarHub Corporate Events

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.

StarHub Prepares for Upcoming AGM and EGM with Shareholder Engagement

StarHub Ltd, a telecommunications company, is addressing shareholder inquiries ahead of its 27th Annual General Meeting and Extraordinary General Meeting scheduled for April 25, 2025. The company has provided responses to significant questions related to resolutions for approval, referencing its Annual Report 2024 and other shareholder communications. The outcomes and minutes of these meetings will be made available on StarHub’s Investor Relations website and SGXNet following the events.

StarHub Transfers Treasury Shares to Fulfill Share Awards

StarHub Ltd announced the transfer of 1,773,878 treasury shares on March 26, 2025, to fulfill share awards under its Performance Share Plan 2014 and Restricted Stock Plan 2024. This transfer reduces the company’s treasury shares from 11,651,805 to 9,877,927, slightly decreasing the percentage of treasury shares against the total issued shares, which reflects StarHub’s commitment to rewarding its employees and aligning their interests with shareholders.