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Servcorp Limited (AU:SRV)
ASX:SRV
Australian Market

Servcorp Limited (SRV) AI Stock Analysis

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AU:SRV

Servcorp Limited

(Sydney:SRV)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
AU$8.00
â–˛(15.11% 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 (SRV) vs. iShares MSCI Australia ETF (EWA)

Servcorp Limited Business Overview & Revenue Model

Company DescriptionServcorp Limited (SRV) is a leading global provider of serviced offices and virtual office solutions, catering primarily to businesses of all sizes. The company operates in the real estate and business services sectors, offering a range of products including fully furnished office spaces, meeting rooms, and administrative support services. Servcorp has a presence in major cities worldwide, providing clients with flexible workspace solutions that enhance productivity and operational efficiency.
How the Company Makes MoneyServcorp 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
85
Very Positive
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
70
Positive
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
78
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue349.86M349.86M314.11M292.72M272.53M270.66M
Gross Profit349.86M349.86M238.05M116.29M106.80M71.49M
EBITDA193.84M193.84M171.02M159.32M159.75M119.70M
Net Income53.12M53.12M39.04M11.07M28.02M22.12M
Balance Sheet
Total Assets722.18M722.18M674.35M640.97M582.67M619.56M
Cash, Cash Equivalents and Short-Term Investments144.43M144.43M103.30M118.82M108.23M104.54M
Total Debt363.17M363.17M371.20M367.85M310.78M349.47M
Total Liabilities488.60M488.60M479.74M453.19M384.42M424.94M
Stockholders Equity233.59M233.59M194.62M187.78M198.25M194.61M
Cash Flow
Free Cash Flow191.84M191.84M129.51M134.94M130.74M135.81M
Operating Cash Flow191.84M191.84M165.79M155.53M145.58M139.65M
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 Price6.95
Price Trends
50DMA
7.23
Negative
100DMA
7.00
Positive
200DMA
6.17
Positive
Market Momentum
MACD
-0.05
Positive
RSI
45.07
Neutral
STOCH
11.11
Positive
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 6.95 is below the 20-day moving average (MA) of 7.09, below the 50-day MA of 7.23, and above the 200-day MA of 6.17, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SRV.

Servcorp Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
AU$138.90M2.6427.48%―-52.10%119.21%
71
Outperform
AU$701.99M13.0724.81%3.98%11.19%34.96%
69
Neutral
AU$760.58M15.3210.13%3.24%14.95%18.79%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
AU$388.47M9.877.93%7.46%-3.97%1057.09%
53
Neutral
AU$692.91M-35.05-1.91%8.63%-4.50%88.28%
40
Underperform
AU$200.36M-9.29-5.60%2.62%-35.85%35.27%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SRV
Servcorp Limited
7.04
2.39
51.40%
AU:COF
Centuria Office REIT
1.16
0.15
14.85%
AU:DXC
Dexus Convenience Retail REIT
2.82
0.07
2.55%
AU:URF
US Masters Residential Property Fund
0.29
0.03
11.54%
AU:APW
AIMS Property Securities Fund
3.12
1.43
84.62%
AU:CWP
Cedar Woods Properties Limited
8.94
3.70
70.61%

Servcorp Limited Corporate Events

Servcorp Director Increases Stake with Share Acquisition
Nov 28, 2025

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.

Servcorp Limited Issues New Employee Incentive Options
Nov 25, 2025

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.

Servcorp Limited Announces Quotation of New Securities on ASX
Nov 20, 2025

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.

Servcorp’s 2025 AGM Resolutions Passed with Strong Support
Nov 13, 2025

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.

Servcorp Limited Issues Cautionary Presentation on Investment Risks
Nov 13, 2025

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.

Servcorp Reports Record Financial Year and Plans Expansion Amid Board Renewal
Nov 13, 2025

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.

Servcorp Limited Announces Cessation of Securities
Oct 28, 2025

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.

Servcorp Director Increases Shareholding
Oct 23, 2025

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.

Servcorp Limited Issues New Securities on ASX
Oct 15, 2025

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.

Servcorp Limited Releases 2025 Corporate Governance Statement
Oct 8, 2025

Servcorp Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles, detailing the roles and responsibilities of the board and management, and ensuring transparency in director appointments and accountability of the company secretary. This release underscores Servcorp’s commitment to maintaining high governance standards, which is crucial for its stakeholders and enhances its reputation in the industry.

Servcorp Achieves Record Growth and Global Expansion
Oct 8, 2025

Servcorp Limited has reported two years of solid growth, achieving record profits and free cash flow while operating in 19 countries, 39 cities, and over 135 locations globally. This growth underscores Servcorp’s strong market positioning and resilience, particularly following the challenges posed by the COVID-19 pandemic, highlighting its commitment to expanding its global footprint and enhancing shareholder value.

Servcorp Limited Announces 2025 Annual General Meeting Details
Oct 8, 2025

Servcorp Limited has announced its Annual General Meeting (AGM) scheduled for November 13, 2025, to be held as a hybrid meeting in Sydney, Australia. The announcement emphasizes the importance of shareholder participation and outlines the procedures for proxy voting, highlighting the company’s commitment to transparent governance and stakeholder engagement.

Servcorp Limited Announces Quotation of New Securities on ASX
Oct 7, 2025

Servcorp Limited has announced the quotation of 37,000 new ordinary fully paid securities on the Australian Securities Exchange (ASX) as of October 7, 2025. This move may enhance the company’s market presence and provide additional capital for its operations, potentially impacting its position in the serviced office industry and offering opportunities for stakeholders.

Servcorp Director Increases Shareholding
Oct 2, 2025

Servcorp Limited has announced a change in the director’s interest, with Alfred George Moufarrige acquiring an additional 30,000 ordinary shares indirectly through Sovori Pty Ltd. This off-market trade increases his indirect holdings to 52,081,142 shares, reflecting a significant investment in the company, which may indicate confidence in Servcorp’s future prospects and could potentially impact shareholder perceptions.

FMR LLC Ceases Substantial Holding in Servcorp Limited
Oct 1, 2025

FMR LLC has ceased to be a substantial holder in Servcorp Limited as of September 29, 2025. This change was due to a series of transactions involving the sale of shares, reflecting a shift in FMR LLC’s investment strategy or portfolio management, which could impact Servcorp’s shareholder structure and market perception.

Servcorp Limited Issues New Securities to Boost Growth
Sep 29, 2025

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 strategic efforts to enhance its financial flexibility and support its ongoing growth initiatives, potentially impacting its market positioning and offering new opportunities for stakeholders.

Servcorp Director Increases Shareholding
Sep 23, 2025

Servcorp Limited announced a change in the director’s interest, with Alfred George Moufarrige acquiring an additional 12,000 ordinary shares indirectly through Sovori Pty Ltd. This off-market trade increases his indirect holdings, reflecting a continued investment in the company, potentially signaling confidence in Servcorp’s future prospects.

Servcorp Limited Announces Cessation of Securities
Sep 19, 2025

Servcorp Limited announced the cessation of 7,500 securities due to the expiry of options without exercise or conversion, effective September 19, 2025. This cessation may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and market positioning.

Servcorp Limited Announces Quotation of New Securities on ASX
Sep 19, 2025

Servcorp Limited has announced the quotation of 10,000 ordinary fully paid securities on the ASX, effective September 19, 2025. This move could enhance the company’s market presence and provide additional capital, potentially impacting its operational capabilities and offering growth opportunities for stakeholders.

Servcorp Limited Issues New Securities for ASX Quotation
Sep 12, 2025

Servcorp Limited has announced the issuance of 40,000 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 strategy to enhance its capital structure, potentially impacting its market positioning and providing additional resources for operational growth.

Servcorp Limited Announces Quotation of New Securities on ASX
Sep 12, 2025

Servcorp Limited announced the quotation of 10,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of September 12, 2025. This move is part of the company’s strategy to enhance its market presence and provide additional value to its stakeholders by increasing the liquidity of its shares.

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.Date of analysis: Oct 02, 2025