Is StarHub Ltd (SGX:CC3) A High Quality Stock To Own?

Ladies and gentlemen, let me tell you something: StarHub Ltd (SGX:CC3) is a stock that you need to pay attention to! This info-communication powerhouse is delivering a range of information, communications, and entertainment services over fixed, cable, mobile, and Internet platforms. And let me tell you, the numbers don't lie!

First things first, let's talk about the dividend yield. StarHub's current dividend yield is 5.1%, which is lower than its historical average of 6.2%. But don't let that fool you! This yield is still attractive compared to many other stocks in the market. In 2024, the dividend yield was 5.9%, which is higher than the yields in previous years such as 2020 (3.6%) and 2021 (3.9%). This indicates a consistent and growing dividend payout, which is a positive sign for investors seeking income.

Now, let's talk about the dividend payout ratio. In 2024, the payout ratio was 82%, which is lower than the payout ratio of 206% in 2022. This suggests that the company is managing its dividends more conservatively, ensuring that it has enough earnings to cover its dividend payments. A lower payout ratio also indicates that the company has room to increase dividends in the future if earnings grow.

And speaking of earnings, in 2024, StarHub's earnings were 152.60 million, an increase of 7.69% compared to the previous year. This earnings growth is a positive indicator of the company's financial health and its ability to generate profits.



Now, let's talk about revenue stability. StarHub's revenue in 2024 was 2.37 billion, a decrease of -0.23% compared to the previous year. While this is a slight decrease, it is relatively stable compared to the significant fluctuations seen in some other companies. This stability in revenue is a positive indicator for investors looking for consistent performance.

And let's not forget about the beta. StarHub's beta is 0.48, which means its price volatility has been lower than the market average. This low beta indicates that StarHub's stock is less risky compared to the overall market, making it a more stable investment option.

Now, let's talk about the Relative Strength Index (RSI). The RSI for StarHub is 48.17, which is within the neutral range (30-70). This suggests that the stock is neither overbought nor oversold, indicating a balanced market sentiment.

And let's not forget about the analyst ratings. Several analysts have given StarHub positive ratings. For example, DBS Research has a "Buy" rating with a target price of 1.540, and UOB Kay Hian also has a "Buy" rating with a target price of 1.410. These positive ratings from reputable analysts suggest that the company is viewed favorably by the investment community.

Now, let's talk about the price target. The consensus share price target for StarHub is 1.280, which represents an upside potential of 7.6% based on the current share price of 1.19. This target price is supported by multiple analysts, including CGS-CIMB, DBS Research, and UOB Kay Hian, who have given target prices ranging from 1.140 to 1.540.

And let's not forget about the financial health. StarHub has a healthy balance sheet, as indicated by its ability to pay dividends and its conservative payout ratio. This financial health is further supported by its consistent earnings growth and stable revenue.

Now, let's talk about the dividend growth. StarHub's dividend per share has shown growth over the years. For example, the dividend per share in 2024 was 0.072, higher than the 0.05 in 2023. This growth in dividends is a positive indicator for investors seeking income.

In comparison to industry benchmarks and competitors, StarHub's financial metrics and performance indicators are generally favorable. The company's dividend yield, earnings growth, and stable revenue are all positive indicators of its financial health. Additionally, the company's low beta and conservative payout ratio make it a less risky investment option compared to some of its competitors. The positive ratings from analysts and the consensus share price target also suggest that StarHub is viewed favorably by the investment community.

So, is StarHub Ltd (SGX:CC3) a high-quality stock to own? The answer is a resounding YES! With its attractive dividend yield, conservative payout ratio, earnings growth, stable revenue, low beta, and positive analyst ratings, StarHub is a stock that you need to have in your portfolio. So, do yourself a favor and BUY NOW!