Servcorp Limited (AU:SRV)
ASX:SRV
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Servcorp Limited
(Sydney:SRV)
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Rating:71Outperform
Price Target:
AU$8.50
â–²(27.82% Upside)
Action:ReiteratedDate: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
Strong free cash flow growth
Sustained FCF growth (19.57%) and a FCF-to-net-income ratio of 1.0 indicate durable cash conversion. This supports reinvestment in locations, dividend/distribution capacity and debt service, increasing financial resilience through business cycles and enabling strategic flexibility over months.
Negative Factors
Moderate leverage on the balance sheet
A debt-to-equity ratio of 1.55 signals material leverage for a services/real estate operator. Higher leverage increases interest and refinancing risk, constrains capital allocation, and amplifies downside in occupancy-driven earnings shocks, limiting strategic optionality over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow growth
Sustained FCF growth (19.57%) and a FCF-to-net-income ratio of 1.0 indicate durable cash conversion. This supports reinvestment in locations, dividend/distribution capacity and debt service, increasing financial resilience through business cycles and enabling strategic flexibility over months.
Read all positive factors
Servcorp Limited (SRV) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$663.77M
Dividend Yield3.97%
Average Volume (3M)82.87K
Price to Earnings (P/E)4.3
Beta (1Y)0.42
Revenue Growth11.19%
EPS Growth34.96%
CountryAU
Employees674
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.42
Shares Outstanding99,814,890
10 Day Avg. Volume85,255
30 Day Avg. Volume82,872
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.47
Price to Sales (P/S)1.65
P/FCF Ratio3.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$10.69Price Target Upside60.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.67
Revenue Forecast (FY)AU$375.00M
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, ma...
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...
Servcorp Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 367.56M | 349.86M | 314.11M | 292.72M | 272.53M | 270.66M |
| Gross Profit | 217.82M | 349.86M | 238.05M | 116.29M | 106.80M | 71.49M |
| EBITDA | 213.13M | 193.84M | 171.02M | 159.32M | 159.75M | 119.70M |
| Net Income | 57.73M | 53.12M | 39.04M | 11.07M | 28.02M | 22.12M |
Balance Sheet | ||||||
| Total Assets | 729.58M | 722.18M | 674.35M | 640.97M | 582.67M | 619.56M |
| Cash, Cash Equivalents and Short-Term Investments | 163.24M | 144.43M | 103.30M | 118.82M | 108.23M | 104.54M |
| Total Debt | 606.35M | 363.17M | 371.20M | 367.85M | 310.78M | 349.47M |
| Total Liabilities | 479.81M | 488.60M | 479.74M | 453.19M | 384.42M | 424.94M |
| Stockholders Equity | 249.77M | 233.59M | 194.62M | 187.78M | 198.25M | 194.61M |
Cash Flow | ||||||
| Free Cash Flow | 179.09M | 191.84M | 129.51M | 134.94M | 130.74M | 135.81M |
| Operating Cash Flow | 190.25M | 191.84M | 165.79M | 155.53M | 145.58M | 139.65M |
| Investing Cash Flow | -32.47M | -32.45M | -38.69M | -24.66M | -12.62M | -6.47M |
| Financing Cash Flow | -139.36M | -150.12M | -125.19M | -122.81M | -122.27M | -131.26M |
Servcorp Limited Technical Analysis
Negative
6.65
Price Trends
7.16
Negative
7.07
Negative
6.65
Negative
Market Momentum
-0.12
Negative
43.00
Neutral
54.05
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 6.65 is below the 20-day moving average (MA) of 6.99, below the 50-day MA of 7.16, and below the 200-day MA of 6.65, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 54.05 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$663.77M | 4.31 | 24.81% | 3.97% | 11.19% | 34.96% | |
70 Outperform | AU$153.15M | 4.96 | 4.26% | ― | -52.10% | 119.21% | |
69 Neutral | AU$615.95M | 4.51 | 14.27% | 3.32% | 14.95% | 18.79% | |
67 Neutral | AU$373.32M | 2.70 | 11.81% | 7.46% | -3.97% | 1057.09% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
53 Neutral | AU$585.39M | 2.79 | -1.91% | 8.63% | -4.50% | 88.28% | |
45 Neutral | AU$123.92M | -3.53 | -18.52% | 2.62% | -35.85% | 35.27% |
* Real Estate Sector Average
AU:SRV
Servcorp Limited
6.69
1.51
29.03%
AU:COF
Centuria Office REIT
0.98
-0.08
-7.84%
AU:DXC
Dexus Convenience Retail REIT
2.70
>-0.01
-0.37%
AU:URF
US Masters Residential Property Fund
0.18
-0.02
-9.09%
AU:APW
AIMS Property Securities Fund
3.44
1.04
43.33%
AU:CWP
Cedar Woods Properties Limited
7.27
2.34
47.46%
Servcorp Limited Corporate Events
Servcorp Seeks ASX Quotation for 10,000 New Ordinary Shares
Mar 1, 2026
Servcorp Limited has applied to the ASX for quotation of 10,000 new ordinary fully paid shares, with an issue date of March 2, 2026. The modest share issuance, lodged as a new announcement under Appendix 2A, slightly increases the company’s ...
Servcorp Seeks ASX Quotation for 10,000 New Ordinary Shares
Feb 19, 2026
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 sh...
Servcorp Seeks ASX Quotation for 10,000 New Ordinary Shares
Feb 9, 2026
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, in...
Servcorp Seeks ASX Quotation for 50,000 New Ordinary Shares
Jan 23, 2026
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 inc...
Servcorp Lifts FY26 Earnings and Cash Flow Guidance on Strong Global Operating Momentum
Jan 21, 2026
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...
Servcorp Seeks ASX Quotation for 20,000 New Ordinary Shares
Dec 29, 2025
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 securit...
Servcorp Limited Announces Cessation of Securities
Dec 15, 2025
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 c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.