Servcorp Limited (SRV) AI Stock Analysis

• Market Cap: AU$786.46M
• Dividend Yield: 3.97%
• Average Volume (3M): 82.87K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.24
• Revenue Growth: 11.19%
• EPS Growth: 34.96%
• Country: AU
• Employees: 674
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.42
• Shares Outstanding: 99,804,886
• 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: AU$11.67
• Price Target Upside: 48.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.62
• Revenue Forecast (FY): AU$391.00M

• Rating: 71 Outperform
• Price Target: AU$8.50 ▲(7.87% Upside)
• Action: Reiterated Date: 10/02/25
• Date: Action: Reiterated 10/02/25

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

Recurring revenue and diversified services

Servcorp's core model relies on recurring fees (serviced offices, virtual offices, meeting-room hire and ancillaries). This creates predictable revenue streams and margin diversification, helping stabilize cash flow across cycles and improve lifetime customer value over months to years.

Strong free cash flow generation

Sustained FCF growth (~19.6%) and a 1.0 conversion ratio show efficient conversion of profits into cash. Durable cash generation supports reinvestment, dividends, debt servicing and strategic initiatives, reducing funding risk during medium-term real estate cycles.

Improving margins and profitability

Consistent revenue growth together with high EBIT/EBITDA margins indicates operational leverage and pricing power in premium locations. Strong margins provide buffer against demand variability and fund strategic investments, sustaining profitability over the next several quarters.

Negative Factors

Moderate leverage on balance sheet

A D/E of 1.55 represents meaningful leverage for a services/real-estate operator. In a softer occupancy environment this raises interest and refinancing risk, constrains capital flexibility for expansion or buybacks, and increases sensitivity of returns to cash-flow swings.

Earnings sensitive to occupancy and churn

Servcorp's revenue depends on utilization, retention and pricing in premium buildings. Structural shifts toward hybrid work or higher churn can depress occupancy and revenue mix, reducing recurring cash flow and pressuring margins over a multi-month to multi-quarter horizon.

Key cash metrics not fully disclosed

Absence of the operating cash flow to net income metric limits visibility into core cash quality. That disclosure gap makes it harder to judge sustainability of reported FCF growth and to stress-test liquidity and debt-service capacity across potential medium-term occupancy shocks.

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

Servcorp Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7.88 is above the 20-day moving average (MA) of 7.54, above the 50-day MA of 7.29, and above the 200-day MA of 6.67, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 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
SRV	71 Outperform	AU$786.46M	13.54	24.81%	3.97%	11.19%	34.96%
APW	70 Outperform	AU$139.34M	15.12	27.48%	―	-52.10%	119.21%
CWP	69 Neutral	AU$771.64M	10.36	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$385.72M	6.37	7.93%	7.46%	-3.97%	1057.09%
COF	53 Neutral	AU$600.32M	9.54	-1.91%	8.63%	-4.50%	88.28%
URF	40 Underperform	AU$129.08M	-2.27	-5.60%	2.62%	-35.85%	35.27%

Servcorp Limited Corporate Events

Servcorp Seeks ASX Quotation for 10,000 New Ordinary Shares

Servcorp Limited has applied to the Australian Securities Exchange for quotation of 10,000 new ordinary fully paid shares, designated under the ticker SRV. The securities, issued on 20 February 2026, modestly increase the company’s listed share capital and signal ongoing utilisation of equity market mechanisms for its corporate funding or incentive structures.

The application for quotation reflects standard capital management activity, with the additional shares becoming part of the company’s tradable float on the ASX. While the volume is relatively small, the move may slightly enhance liquidity in Servcorp’s stock and indicates continued engagement with the exchange’s listing framework.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$11.67 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Seeks ASX Quotation for 10,000 New Ordinary Shares

Servcorp Limited has applied for quotation on the ASX of 10,000 new ordinary fully paid shares, with an issue date of 9 February 2026. The modest size of this securities issuance suggests only a small change to the company’s capital base, indicating limited immediate impact on existing shareholders while incrementally increasing the stock’s free float on the market.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Seeks ASX Quotation for 50,000 New Ordinary Shares

Servcorp Limited has applied to the ASX for quotation of 50,000 new ordinary fully paid shares, with an issue date of 23 January 2026. The relatively small issuance, arising from the exercise or conversion of existing securities, incrementally increases the company’s listed share capital and reflects ongoing use of equity-based instruments without indicating any major shift in its capital structure or strategic direction for stakeholders.

The most recent analyst rating on (AU:SRV) stock is a Buy with a A$11.67 price target. To see the full list of analyst forecasts on Servcorp Limited stock, see the AU:SRV Stock Forecast page.

Servcorp Lifts FY26 Earnings and Cash Flow Guidance on Strong Global Operating Momentum

Servcorp has upgraded its profit and cash flow guidance for the 2026 financial year on the back of stronger operational performance and revenue efficiency across its global serviced office portfolio. The company now expects underlying NPBIT of $80 million to $84 million, up from a prior range of $72 million to $76 million, underlying free cash of at least $100 million versus $90 million previously, and dividends of at least 32 cents per share, compared with a minimum of 30 cents. Management attributes the improved outlook to higher occupancy, pricing discipline, better service conversion and operational efficiencies across a largely fixed cost base, alongside strong cash generation supported by effective working capital and lease management. With unencumbered cash at historically high levels and a scalable operating model spanning 136 floors in 38 cities, Servcorp says it is positioned to continue maximising revenue from mature locations while pursuing selective expansion, reinforcing its resilience in a mixed macroeconomic environment.

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 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.