Saturday, March 23, 2019

StarHub Free Cash Flow versus Dividend payment & Bank Loan

Let us work out the Free cash flow for StarHub base on their financial result for 2018.

As can be seen from their Cash Flow statement for FY2018,  Ops cash flow after working capital changes is $446.6m.

FCF = $446.6m less CAPEX of $ 272.8m = $ 173.7m.



Dividend of about 9 cents (2.25 cents x 4) to be paid out for Y2019 is about 1,730,698,702 shares X $90 , which is about $155.76m.

It looks like the FCF of $173.7m less dividend of 9 cents to be paid in Y2019 of $155.76m,we have a positive FCF of $17.94m.


However, if we take a look at the Bank loan to be paid up in one year is $50.1m.

Therefore, I think the balance of FCF of 17.94 is not sufficient to cover the bank loan $50.1m beside the interest to be payable for the remaining bank loans + perpetual notes etc.


The group net debts level is quite high at 1.52x.


This is just my observation base on the financial figures being extracted from the FY2018 statement.

This is just for sharing and not a call to buy or sell for this counter.

It is good to do you own analysis.



6 comments:

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