Servcorp Limited (SRV) AI Stock Analysis

• Market Cap: AU$743.50M
• Dividend Yield: 3.77%
• Average Volume (3M): 82.87K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.22
• Revenue Growth: 11.19%
• EPS Growth: 34.96%
• Country: AU
• Employees: 674
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.19
• Shares Outstanding: 99,664,890
• 10 Day Avg. Volume: 85,255
• 30 Day Avg. Volume: 82,872
• PEG Ratio: 0.31
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 3.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$11.33
• Price Target Upside: 52.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: AU$8.00 ▲(7.67% Upside)

Servcorp Limited's strong financial performance and reasonable valuation are the primary drivers of its overall score. The technical analysis indicates a positive price trend, but momentum is neutral. The absence of earnings call and corporate events data does not impact the score.

Servcorp Limited Business Overview & Revenue Model

Company Description

Servcorp Limited provides executive serviced and virtual offices, coworking and IT, communications, and secretarial services. It offers office space solutions; and virtual office services, including business address, secretary and receptionist, mail forwarding, and telephone answering services. The company also provides co-working and meeting room services. It operates in Australia, New Zealand, Southeast Asia, the United States, Europe, the Middle East, North Asia, and internationally. Servcorp Limited was founded in 1978 and is headquartered in Sydney, Australia.

How the Company Makes Money

Servcorp generates revenue primarily through the leasing of its serviced office spaces and virtual office services. Clients pay for the use of fully equipped office spaces on a short-term or long-term basis, which includes access to amenities such as high-speed internet, reception services, and meeting rooms. Additionally, the company offers virtual office packages that provide businesses with a professional address, phone answering services, and administrative support, allowing them to establish a presence without the overhead costs of a physical office. Key revenue streams include monthly rental fees, service charges, and ancillary services such as IT support and telecommunication. Partnerships with technology providers and strategic alliances with local businesses also contribute to Servcorp's earnings by enhancing its service offerings and expanding its customer base.

Servcorp Limited Financial Statement Overview

Summary

Servcorp Limited exhibits strong financial performance with robust growth in revenue and profitability. The balance sheet reflects moderate leverage, which should be monitored to mitigate potential risks. Cash flow generation is strong, supporting the company's operational and strategic initiatives.

Income Statement

Servcorp Limited has demonstrated strong revenue growth of 7.32% in the latest period, with a high gross profit margin of 100%. The net profit margin improved to 15.18%, indicating enhanced profitability. EBIT and EBITDA margins are robust at 20.94% and 55.41%, respectively, showcasing efficient operational management. Overall, the income statement reflects a positive growth trajectory and solid profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 1.55, indicating a moderate level of leverage. While the equity ratio is not explicitly calculated, the available data suggests a stable financial structure. Return on equity has improved over the years, reflecting effective use of equity to generate profits. However, the relatively high debt level poses a potential risk if not managed carefully.

Cash Flow

Servcorp Limited has shown a significant free cash flow growth rate of 19.57%, indicating strong cash generation capabilities. The free cash flow to net income ratio is 1.0, suggesting efficient conversion of profits into cash. However, the operating cash flow to net income ratio is not available, which limits a comprehensive analysis. Overall, the cash flow statement indicates healthy cash management and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	349.86M	349.86M	314.11M	292.72M	272.53M	270.66M
Gross Profit	349.86M	349.86M	238.05M	116.29M	106.80M	71.49M
EBITDA	193.84M	193.84M	171.02M	159.32M	159.75M	119.70M
Net Income	53.12M	53.12M	39.04M	11.07M	28.02M	22.12M
Balance Sheet
Total Assets	722.18M	722.18M	674.35M	640.97M	582.67M	619.56M
Cash, Cash Equivalents and Short-Term Investments	144.43M	144.43M	103.30M	118.82M	108.23M	104.54M
Total Debt	363.17M	363.17M	371.20M	367.85M	310.78M	349.47M
Total Liabilities	488.60M	488.60M	479.74M	453.19M	384.42M	424.94M
Stockholders Equity	233.59M	233.59M	194.62M	187.78M	198.25M	194.61M
Cash Flow
Free Cash Flow	191.84M	191.84M	129.51M	134.94M	130.74M	135.81M
Operating Cash Flow	191.84M	191.84M	165.79M	155.53M	145.58M	139.65M
Investing Cash Flow	-32.45M	-32.45M	-38.69M	-24.66M	-12.62M	-6.47M
Financing Cash Flow	-150.12M	-150.12M	-125.19M	-122.81M	-122.27M	-131.26M

Servcorp Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRV, the sentiment is Positive. The current price of 7.43 is above the 20-day moving average (MA) of 7.36, above the 50-day MA of 7.17, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SRV.

Servcorp Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APW	83 Outperform	AU$149.58M	2.84	27.48%	―	-52.10%	119.21%
SRV	71 Outperform	AU$743.50M	13.85	24.81%	3.77%	11.19%	34.96%
CWP	69 Neutral	AU$746.97M	15.04	10.13%	3.28%	14.95%	18.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DXC	64 Neutral	AU$409.14M	10.39	7.93%	7.10%	-3.97%	1057.09%
COF	53 Neutral	AU$695.90M	-35.20	-1.91%	8.52%	-4.50%	88.28%
URF	40 Underperform	AU$198.63M	-9.20	-5.60%	2.86%	-35.85%	35.27%

Servcorp Limited Corporate Events

Perpetual Limited Reduces Stake in Servcorp Limited

Perpetual Limited, a substantial holder in Servcorp Limited, has reduced its voting power from 7.926% to 6.923% as of July 8, 2025. This change in interest may impact Servcorp’s shareholder dynamics and influence within the company, potentially affecting its strategic decisions and market positioning.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Announces Quotation of New Securities on ASX

Servcorp Limited has announced the application for the quotation of 100,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code SRV, effective from July 1, 2025. This move indicates a strategic step in enhancing the company’s market presence and potentially increasing liquidity for its stakeholders.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Announces New Securities Issuance

Servcorp Limited has announced the issuance of 20,000 fully paid ordinary securities, which will be quoted on the ASX under the code SRV. This move could potentially enhance the company’s liquidity and market presence, reflecting its strategic efforts to strengthen its financial position and attract more investors.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Director Increases Stake with New Share Acquisition

Servcorp Limited announced a change in the director’s interest, with Alfred George Moufarrige acquiring an additional 15,000 ordinary shares indirectly through Sovori Pty Ltd. This acquisition, valued at $85,500, reflects a strategic move in the company’s leadership, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Issues New Employee Incentive Options

Servcorp Limited has announced the issuance of 550,000 unquoted equity securities in the form of options, set to expire on June 10, 2030, with an exercise price of $5.50. This move, part of an employee incentive scheme, reflects the company’s strategy to incentivize and retain talent, potentially impacting its operational dynamics and market positioning positively.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Announces Quotation of New Securities on ASX

Servcorp Limited has announced the quotation of 207,500 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code SRV, effective from June 13, 2025. This move is part of the company’s strategy to enhance its capital structure, potentially impacting its market position and offering new opportunities for stakeholders.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Announces Quotation of New Securities on ASX

Servcorp Limited has announced the quotation of 15,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of June 6, 2025. This move is part of the company’s strategy to enhance its market presence and provide more liquidity for its shareholders, potentially impacting its operational dynamics and stakeholder interests.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Announces Cessation of Securities

Servcorp Limited announced the cessation of 10,000 securities due to the lapse of conditional rights, as the conditions for these securities were not met. This announcement may impact the company’s capital structure and could have implications for stakeholders, particularly in terms of market perception and financial strategy.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$5.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited to Quote New Securities on ASX

Servcorp Limited has announced the issuance of 5,000 fully paid ordinary securities to be quoted on the Australian Securities Exchange (ASX) as of May 8, 2025. This move is part of the company’s strategy to enhance its capital structure, potentially strengthening its market position and providing additional resources for operational expansion.