Starhub announces their Q2 2012 results.
The presentation slides is [here]
The full results release is [here]
Overall, the result are status quo. Current Investors can look forward to another SGD$0.05 quarterly dividend payout. Starhub did not indicate that they will raise their quarterly dividends.
Due to that, the current dividend yield is around 5.3%. Its earnings yield is around there as well. (Refer to the Dividend Stock Tracker)
This leaves a PE of 20 times and an EV/EBITDA of nearly 10 times.
As sound and defensive is this telecom business, 20 times probably means, if earnings doesn’t grow, you would expect to recuperate the money in 20 years.
And we have seen in the past three years that the growth rate of Starhub is around 1-3%.
Most of the cash flow improvement were due to lower capital expenditures and minor optimizations. …