StarHub Ltd
StarHub Ltd Fundamental Analysis
StarHub Ltd (SRHBY) shows weak financial fundamentals with a PE ratio of 20.60, profit margin of 3.67%, and ROE of 15.90%. The company generates $2.4B in annual revenue with weak year-over-year growth of -0.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SRHBY's fundamental strength across five key dimensions:
Efficiency Score
WeakSRHBY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSRHBY trades at attractive valuation levels.
Growth Score
WeakSRHBY faces weak or negative growth trends.
Financial Health Score
ModerateSRHBY shows balanced financial health with some risks.
Profitability Score
WeakSRHBY struggles to sustain strong margins.
Key Financial Metrics
Is SRHBY Expensive or Cheap?
P/E Ratio
SRHBY trades at 20.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SRHBY's PEG of -0.35 indicates potential undervaluation.
Price to Book
The market values StarHub Ltd at 3.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.13 times EBITDA. This is generally considered low.
How Well Does SRHBY Make Money?
Net Profit Margin
For every $100 in sales, StarHub Ltd keeps $3.67 as profit after all expenses.
Operating Margin
Core operations generate 6.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.90 in profit for every $100 of shareholder equity.
ROA
StarHub Ltd generates $2.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
StarHub Ltd produces operating cash flow of $336.81M, showing steady but balanced cash generation.
Free Cash Flow
StarHub Ltd generates weak or negative free cash flow of $-51.15M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.30 in free cash annually.
FCF Yield
SRHBY converts -2.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SRHBY Stacks Against Its Sector Peers
| Metric | SRHBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.60 | 23.66 | Better (Cheaper) |
| ROE | 15.90% | 1013.00% | Weak |
| Net Margin | 3.67% | -69160.00% (disorted) | Weak |
| Debt/Equity | 3.57 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.44 | 1.67 | Neutral |
| ROA | 2.39% | -6858.00% (disorted) | Weak |
SRHBY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews StarHub Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.66%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-44.96%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-33.56%
Industry Style: Growth, Technology, Streaming
Declining