Servcorp Limited (SRV) AI Stock Analysis

• Market Cap: AU$676.20M
• Dividend Yield: 3.97%
• Average Volume (3M): 82.87K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.15
• 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: 99,734,886
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: AU$8.00 ▲(18.52% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Cash Generation

Strong cash generation supports operational and strategic initiatives, providing financial flexibility for future growth.

Profitability

Improved profitability reflects efficient cost management and operational effectiveness, enhancing long-term financial health.

Negative Factors

Leverage

Moderate leverage poses potential risks if not managed carefully, potentially impacting financial stability and flexibility.

Debt Levels

High debt levels can strain cash flow and limit financial flexibility, impacting long-term stability and growth potential.

Operational Risk

Lack of recent corporate events or earnings call data may indicate potential transparency issues, affecting investor confidence.

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: Negative
• Last Price: 6.75
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 6.75 is below the 20-day moving average (MA) of 6.93, below the 50-day MA of 7.11, and above the 200-day MA of 6.27, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SRV.

Servcorp Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRV	71 Outperform	AU$676.20M	12.53	24.81%	3.97%	11.19%	34.96%
APW	70 Outperform	AU$138.90M	2.71	27.48%	―	-52.10%	119.21%
CWP	69 Neutral	AU$706.13M	14.24	10.13%	3.32%	14.95%	18.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DXC	64 Neutral	AU$395.36M	10.15	7.93%	7.46%	-3.97%	1057.09%
COF	53 Neutral	AU$669.02M	-33.38	-1.91%	8.63%	-4.50%	88.28%
URF	40 Underperform	AU$199.65M	-9.29	-5.60%	2.62%	-35.85%	35.27%

Servcorp Limited Corporate Events

Servcorp Seeks ASX Quotation for 20,000 New Ordinary Shares

Servcorp Limited has applied to the ASX for quotation of 20,000 new fully paid ordinary shares, issued on 30 December 2025 under its existing listing. The relatively small share issuance, arising from the exercise or conversion of existing securities, modestly increases the company’s quoted capital base and reflects ongoing utilisation of equity-based instruments by stakeholders, with limited immediate impact on overall ownership structure or market positioning.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 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 certain securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation involves a total of 70,000 options, which may impact the company’s capital structure and investor relations, reflecting a strategic adjustment in their financial operations.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 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 Share Acquisition

Servcorp Limited announced a change in the director’s interest, specifically for Director Alfred George Moufarrige, who acquired an additional 25,000 ordinary shares through an off-market trade. This change, valued at $175,000, increases his indirect holdings to 52,156,142 ordinary shares, potentially signaling confidence in the company’s future prospects.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 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 announced the issuance of 1,800,000 unquoted equity securities in the form of options expiring on November 30, 2030, with an exercise price of $7.20. This issuance is part of an employee incentive scheme and is not intended to be quoted on the ASX, reflecting the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 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 announced the quotation of 50,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code SRV, effective November 20, 2025. This move is part of the company’s strategic financial activities, potentially impacting its market position and offering opportunities for stakeholders to engage with the company’s growth initiatives.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp’s 2025 AGM Resolutions Passed with Strong Support

Servcorp Limited announced the results of its 2025 Annual General Meeting, where all proposed resolutions were passed. Key resolutions included the adoption of the remuneration report, the re-election of director Mrs. Wallis Graham, and the issuance of options to Mr. Alfred George Moufarrige. The approval of these resolutions reflects strong shareholder support and could impact the company’s governance and executive compensation strategies.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Limited Issues Cautionary Presentation on Investment Risks

Servcorp Limited has released a presentation outlining important information about its operations, emphasizing that it is not an offer or investment advice. The presentation highlights the risks associated with investing in Servcorp, including potential loss of income and capital, and advises investors to conduct due diligence and consult professional advisers. The document also notes that forecasts and forward-looking statements are subject to uncertainties, and past performance may not indicate future results. Additionally, the presentation mentions that dividend guidance is contingent upon meeting forecast assumptions.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Reports Record Financial Year and Plans Expansion Amid Board Renewal

Servcorp Limited reported a record financial year in 2025, with significant growth in revenue and net profit, driven by improved market trends and a surge in demand for flexible workspaces. The company plans to expand further in 2026, particularly in Japan and Saudi Arabia, while maintaining a strong cash position and rewarding shareholders with increased dividends. The company’s share price has also seen a substantial rise, reflecting its value and performance. Additionally, Servcorp is undergoing board renewal to ensure effective governance and leadership succession.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 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 20,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s strategic adjustments in its securities management.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Director Increases Shareholding

Servcorp Limited has announced a change in the indirect interest of its director, Alfred George Moufarrige. The director acquired an additional 50,000 ordinary shares through an off-market trade, valued at $350,000, increasing his indirect holding to 52,131,142 shares. This transaction reflects a strategic move in the director’s investment portfolio, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 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 Securities on ASX

Servcorp Limited has announced the issuance of 50,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code SRV. This move is part of the company’s ongoing efforts to enhance its market presence and provide additional value to its stakeholders.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.00 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.