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Service Stream Limited (AU:SSM)
ASX:SSM

Service Stream Limited (SSM) AI Stock Analysis

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AU

Service Stream Limited

(Sydney:SSM)

Rating:72Outperform
Price Target:
AU$2.00
▲(6.38%Upside)
Service Stream Limited's stock score is primarily driven by its strong financial performance and positive technical indicators. While the company demonstrates robust revenue growth and cash flow management, challenges remain in improving profitability margins. The stock's valuation suggests moderate growth potential, with technical analysis indicating a bullish trend in the market.

Service Stream Limited (SSM) vs. iShares MSCI Australia ETF (EWA)

Service Stream Limited Business Overview & Revenue Model

Company DescriptionService Stream Limited designs, constructs, operates and maintains infrastructure networks in Australia. It operates through: Telecommunications, Utilities, and Transport segments. The Telecommunications segment provides various operations, maintenance, installation, design, and construction services to owners of fixed-line and wireless telecommunication networks, including customer connections; service and network assurance; site acquisition; and design, construction, engineering, and installation of broadband, wireless, and fixed-line project services, as well as projects for asset remediation, augmentation, and relocation. The Utilities segment offers operations, maintenance, design, and construction services, as well as range of specialist metering, new energy, and inspection services to gas, water, and electricity network owners and other customers. Its services include asset upgrades and replacement; design, engineering, and construction services for network assets and energy-related products; and meter reading and network assurance, as well as specialist inspection, auditing, and compliance services. The Transport segment provides operational support and maintenance services to public and private road, and tunnel asset owners. Its services comprising road network maintenance, control room operations, minor civil construction services, and installation and operation of intelligent transport systems. The company was incorporated in 1996 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyService Stream Limited generates revenue primarily through contracts and service agreements with major organizations across telecommunications, utilities, and transport sectors. The company's revenue model is built on providing comprehensive infrastructure services, including network design, construction, maintenance, and asset management. Key revenue streams include long-term maintenance contracts, project delivery services, and network assurance services. Significant partnerships with leading industry players, such as telecommunications companies and utility providers, contribute to its earnings by ensuring a steady flow of projects and recurring service agreements. The company's ability to deliver cost-effective and reliable solutions is a critical factor in securing and retaining these contracts.

Service Stream Limited Financial Statement Overview

Summary
Service Stream Limited demonstrates solid financial health with notable revenue growth and effective cash flow management. While the balance sheet is stable with low leverage, the company could improve profitability margins and return on equity to enhance overall financial performance.
Income Statement
72
Positive
Service Stream Limited has demonstrated solid revenue growth, increasing from 1.51 billion in 2022 to 2.29 billion in 2024, showcasing a strong upward trajectory. The gross profit margin has improved significantly over the years, with a current margin of 94.2%, indicating efficient cost management. However, net profit margins remain modest at 1.41%, suggesting room for improvement in profitability. EBIT and EBITDA margins are reasonable at 2.28% and 4.92% respectively, but there's potential to enhance operational efficiency.
Balance Sheet
68
Positive
Service Stream Limited maintains a stable equity position with an equity ratio of 45.8%, reflecting a strong balance between debt and equity financing. The debt-to-equity ratio is relatively low at 0.24, indicating prudent leverage management. However, the return on equity is modest at 6.73%, suggesting that the company could improve its utilization of equity to generate higher returns.
Cash Flow
75
Positive
The company shows robust cash flow management with a healthy free cash flow of 86.71 million in 2024. The operating cash flow to net income ratio is strong at 3.01, indicating efficient conversion of earnings into cash. Free cash flow to net income is also favorable at 2.69. Despite these strengths, a slight decline in free cash flow growth rate from the prior year indicates potential challenges in sustaining cash flow growth.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.38B2.29B2.05B1.51B803.01M927.95M
Gross Profit917.20M2.16B96.14M59.26M78.66M108.39M
EBITDA94.89M112.65M100.53M24.31M75.19M105.56M
Net Income52.62M32.30M4.46M-36.32M29.27M49.31M
Balance Sheet
Total Assets1.03B1.05B1.09B1.05B547.43M588.68M
Cash, Cash Equivalents and Short-Term Investments55.43M62.95M84.27M68.68M50.57M79.47M
Total Debt71.22M117.02M171.86M206.37M67.50M93.36M
Total Liabilities536.53M568.27M625.75M581.56M224.09M266.88M
Stockholders Equity495.89M480.29M465.36M468.10M323.33M321.80M
Cash Flow
Free Cash Flow111.31M86.71M86.83M53.17M35.65M49.86M
Operating Cash Flow121.23M97.19M94.81M58.55M45.55M57.68M
Investing Cash Flow-6.88M-6.38M-16.91M-317.74M-8.84M-6.49M
Financing Cash Flow-132.23M-112.12M-62.31M277.30M-65.61M-42.53M

Service Stream Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.88
Price Trends
50DMA
1.90
Negative
100DMA
1.82
Positive
200DMA
1.67
Positive
Market Momentum
MACD
<0.01
Positive
RSI
44.14
Neutral
STOCH
15.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SSM, the sentiment is Neutral. The current price of 1.88 is below the 20-day moving average (MA) of 1.94, below the 50-day MA of 1.90, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SSM.

Service Stream Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSSM
72
Outperform
€1.18B22.2910.90%2.61%6.66%124.87%
67
Neutral
€8.33B18.426.19%2.69%2.39%-39.55%
DE8MP
€953.65M20.4315.97%3.81%
DE3NR
€763.23M10.5918.01%4.62%
AUJLG
71
Outperform
AU$905.96M22.818.61%1.56%-10.74%-16.14%
AUSRG
69
Neutral
AU$1.01B24.1411.36%2.98%25.40%41.18%
AUGNP
67
Neutral
AU$760.38M31.4019.31%0.59%35.02%48.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SSM
Service Stream Limited
1.89
0.67
55.02%
DE:8MP
Monadelphous Group Limited
9.35
1.92
25.84%
DE:3NR
NRW Holdings Limited
1.63
-0.15
-8.43%
AU:SRG
SRG Global Limited
1.66
0.82
97.62%
AU:GNP
GenusPlus Group Ltd.
4.29
2.37
123.44%
AU:JLG
Johns Lyng Group Ltd
3.14
-2.58
-45.10%

Service Stream Limited Corporate Events

Service Stream Limited Announces Change in Substantial Holding
Jul 1, 2025

Service Stream Limited has announced a change in substantial holding, indicating that State Street Corporation and its subsidiaries, including State Street Global Advisors and State Street Bank and Trust Company, have ceased to be substantial holders as of June 27, 2025. This change in substantial holding may impact Service Stream Limited’s shareholder structure and influence within the market, potentially affecting its strategic decisions and stakeholder relationships.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

State Street Global Advisors Becomes Substantial Holder in Service Stream Limited
Jun 30, 2025

Service Stream Limited has announced that State Street Global Advisors and its subsidiaries have become substantial holders in the company, with a significant number of voting shares. This development indicates a strong interest from institutional investors, potentially impacting the company’s market positioning and signaling confidence in its future prospects.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

State Street Ceases Substantial Holding in Service Stream
Jun 26, 2025

Service Stream Limited has announced that State Street Global Advisors Trust Company and its subsidiaries have ceased to be substantial holders in the company as of June 24, 2025. This change in substantial holding may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

Service Stream Limited Gains Substantial Investment from State Street
Jun 24, 2025

Service Stream Limited has announced a substantial holding by State Street Corporation and its subsidiaries, indicating a significant investment interest in the company. This development highlights the strategic positioning of Service Stream Limited as a potentially attractive investment, which could impact its market perception and stakeholder confidence.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Service Stream Limited
Jun 23, 2025

Service Stream Limited has announced a change in substantial holding, as State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of June 19, 2025. This change in holding may impact the company’s voting securities and could influence its market positioning and stakeholder dynamics.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

State Street Corporation Acquires Substantial Holding in Service Stream Limited
Jun 20, 2025

Service Stream Limited has announced that a substantial holder, State Street Corporation and its subsidiaries, have acquired a significant voting power in the company. This development indicates a strategic move by State Street to influence the company’s decision-making process, potentially impacting its operational strategies and market positioning.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

Service Stream Secures $440 Million NBN Fibre Upgrade Contract
Jun 11, 2025

Service Stream Limited has secured a $440 million agreement with NBN Co to continue supporting the upgrade of the remaining Fibre to the Node (FTTN) footprint to Fibre to the Premises (FTTP) technology. This agreement, which extends the company’s existing work under the N2P Evolution Agreement in Queensland, New South Wales, and Victoria, ensures continuity and longevity for Service Stream’s design and construction operations over an initial 3.5-year term, with a 2-year extension option.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$1.68 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

TIGA Trading Pty Ltd Ceases to be Substantial Holder in Service Stream Limited
May 2, 2025

Service Stream Limited, a company listed on the ASX, has announced that TIGA Trading Pty Ltd has ceased to be a substantial holder of its shares as of April 30, 2025. This change in substantial holding, reported in accordance with the Corporations Act, involved multiple market sales of ordinary shares by TIGA Trading Pty Ltd and associated entities, impacting the voting securities of Service Stream Limited.

Thorney Opportunities Ltd Reduces Stake in Service Stream Limited
May 2, 2025

Thorney Opportunities Ltd has announced that it has ceased to be a substantial holder in Service Stream Limited, a company listed on the Australian Securities Exchange. The change in holding was due to a series of market sales conducted by Thorney Opportunities Ltd and its associates, including TIGA Trading Pty Ltd and Jasforce Pty Ltd, between April 22 and April 30, 2025. This development might affect the company’s influence in Service Stream Limited and could have implications for other stakeholders in terms of voting power and market perception.

Allan Gray Australia Ceases Substantial Holding in Service Stream Limited
Apr 29, 2025

Allan Gray Australia Pty Ltd has ceased to be a substantial holder in Service Stream Limited as of April 24, 2025. This change in substantial holding could impact the company’s shareholder dynamics and influence its market position, as substantial holders often play a significant role in corporate governance and strategic decision-making.

Change in Substantial Holding for Service Stream Limited
Apr 24, 2025

Service Stream Limited has announced that Australian Retirement Trust Pty LTD has ceased to be a substantial holder in the company as of April 22, 2025. This change in substantial holding could potentially impact the company’s shareholder structure and influence its market positioning, as substantial holders often play a significant role in corporate governance and strategic decision-making.

Mitsubishi UFJ Financial Group Becomes Substantial Holder in Service Stream
Apr 22, 2025

Mitsubishi UFJ Financial Group, Inc. has become a substantial holder in Service Stream Limited, acquiring a significant voting power of 5.06% through various fully paid ordinary shares. This development indicates Mitsubishi UFJ’s strategic interest in Service Stream, potentially impacting the company’s governance and future strategic decisions, while also reflecting the financial group’s broader investment strategy.

Service Stream Limited’s Substantial Holder Reduces Stake
Apr 16, 2025

Service Stream Limited, a company listed on the ASX, has experienced a change in the interests of its substantial holder, TIGA Trading Pty Ltd, and associated entities. The notice indicates a reduction in voting power from 6.22% to 5.15%, following a series of market sales of ordinary shares by various entities within the Thorney Investment Group. This change in shareholding could impact the company’s governance dynamics and influence over strategic decisions, potentially affecting stakeholders’ interests.

Thorney Opportunities Reduces Stake in Service Stream Limited
Apr 16, 2025

Thorney Opportunities Ltd has decreased its stake in Service Stream Limited, a company listed on the Australian Securities Exchange (ASX) under the ticker SSM. The change in substantial holding was reported through a Form 604 notice, indicating a reduction in voting power from 6.22% to 5.15%. This reduction reflects a series of market sales by various entities associated with Thorney Opportunities Ltd, including TIGA Trading Pty Ltd and the Waislitz Family Foundation, among others. The impact of this change may affect the company’s shareholder dynamics and could influence investor perception.

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: Jun 05, 2025