Comparison of StarHub, M1 and Singtel – FY2012 and FY2013

StarHub and M1 had year-end on 31 December 2012. Singapore Telecom (Singtel) had a different year-end, ended 31 March 2013. With the release of Singtel results today, let us see how each one stack up against one another.

The table below shows comparisons using some key ratios and results.

  StarHub M1 Singtel
Net Profit $359.3 m (+13.9%) $146.5 m (-10.7%) $3,508 m (- 12.0%)
EPS 20.9 cents 16.1 cents 22.0 cents
Dividend 20.0 cents 14.6 cents 16.8 cents
Dividend payout ratio 95.6% 90.6% 74.0%
Net Asset Value per share 2.5 cents 38.1 cents $1.50
Share Price – 14 May $4.61 $3.42 $3.99
Dividend yield 4.33% 4.26% 4.21%

Net profit for StarHub increased 13.9% but M1’s net profit declined 10.7%. Singtel’s net profit decreased by 12.0%.

Dividend payout ratio was highest for StarHub at 95.6% followed by M1 at 90.6% and 74.0% for Singtel. “The Group has raised its dividend payout range to 60% to 75% of underlying net profit, from 55% to 70% previously.” (Source: Singtel announcement 15 May 2013) Despite this, Singtel’s dividend payout ratio is lower than the other two telcos.

Dividend yields based on yesterday’s share prices were 4.33%, 4.26% and 4.21% for StarHub, M1 and Singtel respectively. Share prices of these telcos have been rising since the start of this year. Dividend yield reflects how much investors have been chasing these stocks for their dividend yields. Will there be rooms for further share price increases?

The table above also provides you with a sense of net asset value per share and the share prices for comparison.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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