StarHub Ltd CC3

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SGD 1.23 −0.01 (0.81%)

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As of Jul 5, 2024 9:08am Delayed Price Closed

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Company Report

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StarHub Looking to Dare+ to Provide Boost to Profit

Dan Baker May 15, 2024

Ownership of infrastructure assets and economies of scale underpin StarHub's narrow economic moat rating. Cost advantage allows StarHub to price its products competitively with bundling of multiple services, helping retain share in the consumer market. Strong free cash flow supports its dividend payout.

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Price vs Fair Value

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CC3 is trading at a 797% premium.

Price

SGD 1.24

Jul 4, 2024

Fair Value

SGD 1.44

Feb 8, 2024

Uncertainty

Low

1-Star Price: SGD 5.31
5-Star Price: SGD 2.97
Economic Moat: Ckjcch
Capital Allocation: Hwlxlkn

Bulls Say, Bears Say

Bulls

StarHub's revamping of its IT systems with its Dare and Dare+ programs will give it a cost advantage over its competitors.

Bears

The pay-TV business is in structural decline as customers continue to cut the cord and go with over-the-top options.

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Trading Information

Previous Close Price: SGD 1.24
Day Range: SGD 1.23–1.24
52-Week Range: SGD 1.01–1.29
Bid/Ask: SGD 1.23 / SGD 1.24
Market Cap: SGD 2.11 Bil
Volume/Avg: 600,200 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized): 10.33
Price/Sales: 0.91
Dividend Yield (Trailing): 5.40%
Dividend Yield (Forward): 6.77%
Total Yield: 6.23%

Company Profile

StarHub is one of three main telecommunications providers in Singapore offering products covering mobile, broadband, fixed voice, and pay television. StarHub operates a mobile network. The company's fixed network spans domestic and international backhaul. It used to reach residential premises with a hybrid fiber-coaxial network, which has now been replaced with the National Broadband Network. The Singapore government retains an indirect 57% stake through Temasek Holdings, while NTT Communications also holds a strategic 10% stake.

Sector: Communication Services
Industry: Telecom Services
Stock Style Box: Mid Core
Total Number of Employees: 3,192
Website: https://www.starhub.com

Competitors

Valuation

Metric	CC3	Z74	TPG
Price/Earnings (Normalized)	10.33	21.00	14.42
Price/Book Value	5.91	1.99	0.73
Price/Sales	0.91	3.39	1.54
Price/Cash Flow	5.48	11.35	7.07

Price/Earnings

CC3

Z74

TPG

Financial Strength

Metric	CC3	Z74	TPG
Quick Ratio	1.17	1.18	0.63
Current Ratio	1.44	1.35	0.75
Interest Coverage	5.64	2.99	1.17

Quick Ratio

CC3

Z74

TPG

Profitability

Metric	CC3	Z74	TPG
Return on Assets (Normalized)	4.65%	4.85%	3.00%
Return on Equity (Normalized)	40.78%	9.03%	4.96%
Return on Invested Capital (Normalized)	8.07%	6.73%	4.81%

Return on Assets

CC3

Z74

TPG

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