Star Media Group Berhad (KLSE:STAR) - Share price, News & Analysis

Q: What is the Fair Price of STAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

STAR (MYR0.3) is trading above our estimate of [[fair value]] (MYR0.05)

STAR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

STAR Stock Overview

Star Media Group Berhad operates as an integrated media company in Malaysia, Singapore, and internationally.

Rewards

Earnings are forecast to grow 51.18% per year

Risk Analysis

Does not have a meaningful market cap (MYR217M)

Star Media Group Berhad Competitors

Sasbadi Holdings Berhad

KLSE:SASBADI

RM51.0m

Seni Jaya Corporation Berhad

KLSE:SJC

RM114.1m

JcbNext Berhad

KLSE:JCBNEXT

RM171.6m

Media Prima Berhad

KLSE:MEDIA

RM443.7m

Price History & Performance

Summary of all time highs, changes and price drops for Star Media Group Berhad
Historical stock prices
Current Share Price	RM0.30
52 Week High	RM0.39
52 Week Low	RM0.29
Beta	1.17
1 Month Change	0%
3 Month Change	-14.29%
1 Year Change	-20.00%
3 Year Change	-53.13%
5 Year Change	-87.18%
Change since IPO	-75.21%

Shareholder Returns

	STAR	MY Media	MY Market
7D	1.7%	-0.8%	1.2%
1Y	-20.0%	-21.9%	-6.5%

Return vs Industry: STAR exceeded the MY Media industry which returned -21.6% over the past year.

Return vs Market: STAR underperformed the MY Market which returned -6.9% over the past year.

Price Volatility

Is STAR's price volatile compared to industry and market?
STAR volatility
STAR Average Weekly Movement	5.1%
Media Industry Average Movement	6.7%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.8%

Stable Share Price: STAR is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: STAR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1971	933	Alex Yeow	https://www.starmediagroup.my

Star Media Group Berhad operates as an integrated media company in Malaysia, Singapore, and internationally. It operates through three segments: Print and Digital, Broadcasting, and Event and Exhibition. The Print and Digital segment publishes, prints, and distributes newspapers and magazines; advertises in print and electronic media; operates an online portal; and provides on-demand Internet streaming media services.

Star Media Group Berhad Fundamentals Summary

How do Star Media Group Berhad's earnings and revenue compare to its market cap?
STAR fundamental statistics
Market Cap	RM217.43m
Earnings (TTM)	-RM115.74m
Revenue (TTM)	RM196.61m

1.1x

P/S Ratio

-1.9x

P/E Ratio

Is STAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STAR income statement (TTM)
Revenue	RM196.61m
Cost of Revenue	RM78.14m
Gross Profit	RM118.47m
Other Expenses	RM234.20m
Earnings	-RM115.74m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.16
Gross Margin	60.26%
Net Profit Margin	-58.87%
Debt/Equity Ratio	0%

How did STAR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is STAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STAR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STAR. This is calculated by dividing STAR's market cap by their current preferred multiple.
What is STAR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM217.43m

STAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does STAR's PS Ratio compare to its peers?

STAR PS Ratio vs Peers

The above table shows the PS ratio for STAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	8.9x
SASBADI Sasbadi Holdings Berhad	0.9x	n/a	RM51.0m
SJC Seni Jaya Corporation Berhad	7.1x	n/a	RM114.1m
JCBNEXT JcbNext Berhad	27.1x	n/a	RM171.6m
MEDIA Media Prima Berhad	0.4x	4.5%	RM443.7m
STAR Star Media Group Berhad	1.1x	5.5%	RM217.4m

Forward PS

Price-To-Sales vs Peers: STAR is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (8.9x).

Price to Earnings Ratio vs Industry

How does STAR's PE Ratio compare vs other companies in the Asian Media Industry?

Price-To-Sales vs Industry: STAR is good value based on its Price-To-Sales Ratio (1.1x) compared to the MY Media industry average (1.2x)

Price to Sales Ratio vs Fair Ratio

What is STAR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STAR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.1x
Fair PS Ratio	0.8x

Price-To-Sales vs Fair Ratio: STAR is expensive based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

Share Price vs Fair Value

What is the Fair Price of STAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STAR (MYR0.3) is trading above our estimate of fair value (MYR0.05)

Significantly Below Fair Value: STAR is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate STAR's PEG Ratio to determine if it is good value.

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Future Growth

How is Star Media Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

51.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.6%).

Earnings vs Market: STAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: STAR is expected to become profitable in the next 3 years.

Revenue vs Market: STAR's revenue (5.5% per year) is forecast to grow faster than the MY market (5.2% per year).

High Growth Revenue: STAR's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: STAR's Return on Equity is forecast to be low in 3 years time (0.5%).

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Past Performance

How has Star Media Group Berhad performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-68.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STAR is currently unprofitable.

Growing Profit Margin: STAR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: STAR is unprofitable, and losses have increased over the past 5 years at a rate of 68.7% per year.

Accelerating Growth: Unable to compare STAR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STAR is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (19.6%).

Return on Equity

High ROE: STAR has a negative Return on Equity (-17.87%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Star Media Group Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: STAR's short term assets (MYR405.1M) exceed its short term liabilities (MYR97.5M).

Long Term Liabilities: STAR's short term assets (MYR405.1M) exceed its long term liabilities (MYR13.8M).

Debt to Equity History and Analysis

Debt Level: STAR is debt free.

Reducing Debt: STAR has no debt compared to 5 years ago when its debt to equity ratio was 16.5%.

Debt Coverage: STAR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: STAR has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Star Media Group Berhad current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.55%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate STAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STAR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: STAR is not paying a notable dividend for the MY market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as STAR has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Alex Yeow (56 yo)

1.25yrs

Tenure

Mr. Wai Siaw Yeow also known as Alex, serves as Group Chief executive Officer at Star Media Group Berhad since March 01, 2021. He has been Independent Non-Executive Director at UEM Sunrise Berhad since Jun...

Leadership Team

Experienced Management: STAR's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: STAR's board of directors are considered experienced (5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31