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.


  1. It is really quality & outstanding post. keep it up!

    Latest stock market news and updates on the or sell stock ideas by experts for minute to minute updates...
    Currency Trading

    Stock Trading

    Demat Account

    Share Trading

  2. Thank you for helping people get the information they need. Great stuff as usual. Keep up the great work!!! 소액결제 현금화 방법

  3. What's more, by switching to a system that accepts credit cards, you'll also help streamline your accounting system and improve the overall cash flow for your business. This article will examine these benefits in more detail, and also provide some basic guidance that can help you select a merchant account provider that's right for your business needs. Cash Discount Program

  4. If a business gives you an incentive to pay cash but will still give you a receipt, this means they're still going to declare the income but they don't want the hassle of debt collection, cheques bouncing etc. Cash Discount Agent Program

  5. Many people are confused by the different types of loans available. Here is a helpful loans guide of the most common loans available today. local jewelry pawn shops

  6. In most cases, the biggest risk to a pawn borrower arises from the default provisions of the pawn loan. nearest pawn shop from my location