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CC3

StarHub SGX:CC3 Stock Report

Last Price

S$1.24

Market Cap

S$2.1b

7D

0%

1Y

2.5%

Updated

21 May, 2022

Data

Company Financials +
CC3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health5/6
Dividends4/6

CC3 Stock Overview

StarHub Ltd, an integrated info communications company, provides communications, entertainment, and digital solutions for individuals and corporations in Singapore.

StarHub Competitors

Price History & Performance

Summary of all time highs, changes and price drops for StarHub
Historical stock prices
Current Share PriceS$1.24
52 Week HighS$1.40
52 Week LowS$1.18
Beta0.56
1 Month Change-4.61%
3 Month Change-3.13%
1 Year Change2.48%
3 Year Change-18.42%
5 Year Change-54.07%
Change since IPO35.52%

Recent News & Updates

Mar 29
Is StarHub (SGX:CC3) A Risky Investment?

Is StarHub (SGX:CC3) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

CC3SG Wireless TelecomSG Market
7D0%2.3%1.4%
1Y2.5%-1.4%-0.3%

Return vs Industry: CC3 exceeded the SG Wireless Telecom industry which returned -1.4% over the past year.

Return vs Market: CC3 exceeded the SG Market which returned -0.3% over the past year.

Price Volatility

Is CC3's price volatile compared to industry and market?
CC3 volatility
CC3 Average Weekly Movement2.1%
Wireless Telecom Industry Average Movement3.7%
Market Average Movement5.3%
10% most volatile stocks in SG Market12.4%
10% least volatile stocks in SG Market2.5%

Stable Share Price: CC3 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CC3's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,634Nikhil Oommen Eapenhttps://www.starhub.com

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.

StarHub Fundamentals Summary

How do StarHub's earnings and revenue compare to its market cap?
CC3 fundamental statistics
Market CapS$2.15b
Earnings (TTM)S$141.40m
Revenue (TTM)S$2.04b

15.2x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CC3 income statement (TTM)
RevenueS$2.04b
Cost of RevenueS$1.31b
Gross ProfitS$727.80m
Other ExpensesS$586.40m
EarningsS$141.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.082
Gross Margin35.63%
Net Profit Margin6.92%
Debt/Equity Ratio196.0%

How did CC3 perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

78%

Payout Ratio

Valuation

Is StarHub undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CC3 (SGD1.24) is trading below our estimate of fair value (SGD3.96)

Significantly Below Fair Value: CC3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CC3 is good value based on its PE Ratio (15.2x) compared to the Asian Wireless Telecom industry average (21.1x).

PE vs Market: CC3 is poor value based on its PE Ratio (15.2x) compared to the SG market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: CC3 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: CC3 is overvalued based on its PB Ratio (3.6x) compared to the XA Wireless Telecom industry average (1.9x).


Future Growth

How is StarHub forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CC3's forecast earnings growth (6.4% per year) is above the savings rate (1.8%).

Earnings vs Market: CC3's earnings (6.4% per year) are forecast to grow slower than the SG market (12% per year).

High Growth Earnings: CC3's earnings are forecast to grow, but not significantly.

Revenue vs Market: CC3's revenue (5.9% per year) is forecast to grow slower than the SG market (7.6% per year).

High Growth Revenue: CC3's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CC3's Return on Equity is forecast to be high in 3 years time (28.3%)


Past Performance

How has StarHub performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CC3 has high quality earnings.

Growing Profit Margin: CC3's current net profit margins (6.9%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: CC3's earnings have declined by 19.5% per year over the past 5 years.

Accelerating Growth: CC3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CC3 had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Wireless Telecom industry average (7.2%).


Return on Equity

High ROE: Whilst CC3's Return on Equity (21.56%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is StarHub's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CC3's short term assets (SGD1.6B) exceed its short term liabilities (SGD1.1B).

Long Term Liabilities: CC3's short term assets (SGD1.6B) exceed its long term liabilities (SGD1.5B).


Debt to Equity History and Analysis

Debt Level: CC3's net debt to equity ratio (75.5%) is considered high.

Reducing Debt: CC3's debt to equity ratio has reduced from 504.8% to 196% over the past 5 years.

Debt Coverage: CC3's debt is well covered by operating cash flow (48.1%).

Interest Coverage: CC3's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

What is StarHub current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CC3's dividend (6.29%) is higher than the bottom 25% of dividend payers in the SG market (2.22%).

High Dividend: CC3's dividend (6.29%) is in the top 25% of dividend payers in the SG market (5.95%)


Stability and Growth of Payments

Stable Dividend: CC3's dividend payments have been volatile in the past 10 years.

Growing Dividend: CC3's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (78.3%), CC3's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.9%), CC3's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure


CEO

Nikhil Oommen Eapen

1.33yrs

Tenure

S$3,291,611

Compensation

Mr. Nikhil Oommen Jacob Eapen has been Chief Executive Officer at StarHub Ltd. since January 1, 2021 and serves as its Executive Director since 2021. He has experience in the global ICT sector working with...


CEO Compensation Analysis

Compensation vs Market: Nikhil Oommen's total compensation ($USD2.38M) is above average for companies of similar size in the SG market ($USD1.02M).

Compensation vs Earnings: Insufficient data to compare Nikhil Oommen's compensation with company performance.


Leadership Team

Experienced Management: CC3's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: CC3's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

StarHub Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: StarHub Ltd
  • Ticker: CC3
  • Exchange: SGX
  • Founded: 1998
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: S$2.147b
  • Shares outstanding: 1.73b
  • Website: https://www.starhub.com

Number of Employees


Location

  • StarHub Ltd
  • 67 Ubi Avenue 1
  • No. 05-01 StarHub Green
  • Singapore
  • 408942
  • Singapore

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.