SGX:CC3

Stock Analysis Report

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Executive Summary

StarHub Ltd, an integrated info communications company, provides communications, entertainment, and digital solutions for consumers and enterprises in Singapore. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has StarHub's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CC3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

CC3

0.8%

SG Wireless Telecom

-0.09%

SG Market


1 Year Return

-6.9%

CC3

3.4%

SG Wireless Telecom

-21.9%

SG Market

Return vs Industry: CC3 underperformed the SG Wireless Telecom industry which returned 3.4% over the past year.

Return vs Market: CC3 exceeded the SG Market which returned -21.8% over the past year.


Shareholder returns

CC3IndustryMarket
7 Day-0.8%0.8%-0.09%
30 Day3.4%9.3%2.4%
90 Day-4.7%-0.06%-2.0%
1 Year-1.9%-6.9%8.0%3.4%-17.6%-21.9%
3 Year-44.2%-54.5%5.6%-5.7%-20.1%-29.8%
5 Year-53.2%-66.1%15.4%-4.6%-5.0%-22.3%

Price Volatility Vs. Market

How volatile is StarHub's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CC3 (SGD1.22) is trading below our estimate of fair value (SGD2.4)

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 (13x) compared to the XA Wireless Telecom industry average (14.4x).

PE vs Market: CC3 is good value based on its PE Ratio (13x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CC3 is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: CC3 is overvalued based on its PB Ratio (3.9x) compared to the XA Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

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

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CC3's forecast earnings growth (2.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CC3's earnings (2.7% per year) are forecast to grow slower than the SG market (22% per year).

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

Revenue vs Market: CC3's revenue (4.7% per year) is forecast to grow slower than the SG market (6.8% per year).

High Growth Revenue: CC3's revenue (4.7% 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 (30.6%)


Next Steps

Past Performance

How has StarHub performed over the past 5 years?

-20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CC3 has high quality earnings.

Growing Profit Margin: CC3's current net profit margins (7.6%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: CC3's earnings have declined by 20.1% 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 (-0.2%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-0.2%).


Return on Equity

High ROE: Whilst CC3's Return on Equity (27.49%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is StarHub's financial position?


Financial Position Analysis

Short Term Liabilities: CC3's short term assets (SGD1.2B) do not cover its short term liabilities (SGD1.3B).

Long Term Liabilities: CC3's short term assets (SGD1.2B) exceed its long term liabilities (SGD1.0B).


Debt to Equity History and Analysis

Debt Level: CC3's debt to equity ratio (202%) is considered high.

Reducing Debt: CC3's debt to equity ratio has reduced from 441.1% to 202% over the past 5 years.

Debt Coverage: CC3's debt is well covered by operating cash flow (49.5%).

Interest Coverage: CC3's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CC3's dividend (4.1%) is higher than the bottom 25% of dividend payers in the SG market (2.52%).

High Dividend: CC3's dividend (4.1%) is low compared to the top 25% of dividend payers in the SG market (5.36%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.7%), CC3's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CC3's dividends in 3 years are forecast to be covered by earnings (84.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Peter Kaliaropoulos (61 yo)

2.25yrs

Tenure

S$3,258,159

Compensation

Mr. Peter Kaliaropoulos has been the Chief Executive Officer of StarHub Ltd. since July 9, 2018. He was Chief Executive Officer at Mobile Telecommunications Company Saudi Arabia (a/k/a, Jain KSA) from Janu ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD2.40M) is above average for companies of similar size in the SG market ($USD1.67M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Kaliaropoulos
Chief Executive Officer2.25yrsS$3.26m0.013%
SGD 276.5k
Choon Hwee Chia
Chief Financial Officer5.25yrsno datano data
Siew Chong
Chief Technology Officer3.58yrsno datano data
Yaw Kee
Chief Information Officer2.75yrsno datano data
Amelia Lee
Head of Investor Relationsno datano datano data
Cassie Fong
Assistant Vice President of Corporate Communicationsno datano datano data
Catherine Chia
Chief Human Resource Officer2.75yrsno datano data
Tim Goodchild
Senior Vice President of Governmentno datano datano data
Chris Lipman
Head of Customer Service Experience2.75yrsno datano data
Johan Hendrik Buse
Chief of Consumer Business Group2.08yrsno datano data
Charlie Chan
Chief of Enterprise Business Group0.75yrno datano data
Adam Stewart
Head of Digitalno datano datano data

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: CC3's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ming Seong Lim
Non-Executive Director19.83yrsS$133.20k0.019%
SGD 411.1k
Steven Clontz
Non-Executive Chairman5.25yrsS$234.80k0.014%
SGD 305.5k
Ek Tor Teo
Independent Non-Executive Director16.17yrsS$115.20k0.015%
SGD 313.9k
Nasser Mohammed Marafih
Non-Executive Director13.25yrsS$106.40k0.0082%
SGD 172.4k
Nihal Vijaya Devadas Kaviratne
Lead Independent Director2yrsS$195.55k0.0050%
SGD 106.7k
Michelle Guthrie
Independent Director3.17yrsS$122.40k0.0034%
SGD 71.8k
Kah Woh Ma
Independent Director5.08yrsS$138.00k0.010%
SGD 214.4k
Stephen Geoffrey Miller
Non-Executive Director3.75yrsS$122.80k0.0048%
SGD 102.0k
Shin Ein Ng
Independent Director2.08yrsS$112.98k0.0017%
SGD 35.3k
Nayantara Bali
Independent Non-Executive Director2.17yrsS$100.86k0.0018%
SGD 37.2k
Naoki Wakai
Non-Executive Director3.17yrsS$55.13kno data
Hung Tong Yeo
Independent Director1.75yrsS$87.39k0.0011%
SGD 23.2k

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: CC3's board of directors are considered experienced (3.5 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.


Top Shareholders

Company Information

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


Key Information

  • Name: StarHub Ltd
  • Ticker: CC3
  • Exchange: SGX
  • Founded: 1998
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: S$2.113b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CC3SGX (Singapore Exchange)YesOrdinary SharesSGSGDOct 2004
RYTBDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2004
SRHB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2004
SRHB.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

StarHub Ltd, an integrated info communications company, provides communications, entertainment, and digital solutions for consumers and enterprises in Singapore. The company operates in three segments: Tel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 12:37
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.