StarHub (SGX:CC3) - Share price, News & Analysis

CC3 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	5/6
Dividends	4/6

CC3 Stock Overview

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

Rewards

Trading at 68.7% below our estimate of its fair value

Earnings are forecast to grow 6.39% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

StarHub Competitors

Singapore Telecommunications

SGX:Z74

S$44.4b

True Corporation

SET:TRUE

฿148.8b

Astro Malaysia Holdings Berhad

KLSE:ASTRO

RM5.1b

MNC Sky Vision

IDX:MSKY

Rp3.2t

Price History & Performance

Summary of all time highs, changes and price drops for StarHub
Historical stock prices
Current Share Price	S$1.24
52 Week High	S$1.40
52 Week Low	S$1.18
Beta	0.56
1 Month Change	-4.61%
3 Month Change	-3.13%
1 Year Change	2.48%
3 Year Change	-18.42%
5 Year Change	-54.07%
Change since IPO	35.52%

Recent News & Updates

Mar 29

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

	CC3	SG Wireless Telecom	SG Market
7D	0%	2.3%	1.4%
1Y	2.5%	-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 Movement	2.1%
Wireless Telecom Industry Average Movement	3.7%
Market Average Movement	5.3%
10% most volatile stocks in SG Market	12.4%
10% least volatile stocks in SG Market	2.5%

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

Founded	Employees	CEO	Website
1998	1,634	Nikhil Oommen Eapen	https://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 Cap	S$2.15b
Earnings (TTM)	S$141.40m
Revenue (TTM)	S$2.04b

15.2x

P/E Ratio

1.1x

P/S Ratio

Is CC3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CC3 income statement (TTM)
Revenue	S$2.04b
Cost of Revenue	S$1.31b
Gross Profit	S$727.80m
Other Expenses	S$586.40m
Earnings	S$141.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.082
Gross Margin	35.63%
Net Profit Margin	6.92%
Debt/Equity Ratio	196.0%

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31