Service Stream Limited (SSM) AI Stock Analysis

• Market Cap: AU$1.33B
• Dividend Yield: 2.43%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.40
• Revenue Growth: 1.65%
• EPS Growth: 84.19%
• Country: AU
• Employees: 5,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 618,405,400
• 10 Day Avg. Volume: 1,397,927
• 30 Day Avg. Volume: 2,181,812
• PEG Ratio: 0.25
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 10.00
• 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$2.68
• Price Target Upside: 24.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: AU$2.50 ▲(16.28% Upside)

Service Stream Limited's overall score is driven by strong financial performance, particularly in gross profit margins and cash flow management. The technical analysis indicates positive momentum, though caution is warranted due to overbought signals. Valuation metrics suggest moderate attractiveness, with room for improvement in profitability and revenue growth.

Service Stream Limited Business Overview & Revenue Model

Company Description

Service 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 Money

Service Stream Limited generates revenue through a diverse portfolio of services related to the design, construction, and maintenance of essential infrastructure networks. The company's primary revenue streams come from long-term contracts with major telecommunications and utility providers, where they offer end-to-end solutions for network infrastructure projects. Service Stream undertakes large-scale projects that involve network design and construction, as well as ongoing maintenance and operational support. Additionally, significant partnerships with leading telecommunications and energy companies enhance their revenue potential, enabling Service Stream to secure consistent and recurring income through service agreements, project-based contracts, and maintenance support. The company's earnings are bolstered by its reputation for reliability and quality, as well as its ability to adapt to industry changes and technological advancements.

Service Stream Limited Financial Statement Overview

Summary

Service Stream Limited demonstrates strong gross profit margins and effective cash flow management, indicating operational efficiency and financial health. However, challenges with inconsistent revenue growth and profitability, as well as volatile return on equity, suggest areas for improvement.

Income Statement

Service Stream Limited has shown a strong gross profit margin, consistently above 90% in recent years, indicating efficient cost management. However, the net profit margin is relatively low, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a decline in the most recent year, which is a concern for future growth prospects. The EBIT and EBITDA margins are modest, suggesting room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating a reduction in leverage and a stronger equity position. The equity ratio is stable, reflecting a solid capital structure. However, the return on equity has been volatile, with a negative ROE in 2022, highlighting potential profitability challenges.

Cash Flow

Service Stream Limited has demonstrated positive free cash flow growth, indicating effective cash management. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from earnings. The free cash flow to net income ratio is strong, underscoring the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.33B	2.33B	2.29B	2.05B	1.51B	803.01M
Gross Profit	569.56M	2.22B	2.16B	96.14M	59.26M	78.66M
EBITDA	135.85M	144.81M	116.03M	100.53M	24.31M	74.24M
Net Income	59.18M	59.18M	32.30M	4.46M	-36.32M	29.27M
Balance Sheet
Total Assets	1.05B	1.05B	1.05B	1.09B	1.05B	547.43M
Cash, Cash Equivalents and Short-Term Investments	73.55M	73.55M	62.95M	84.27M	68.68M	50.57M
Total Debt	77.19M	77.19M	117.02M	171.86M	206.37M	67.50M
Total Liabilities	533.37M	533.37M	568.27M	625.75M	581.56M	224.09M
Stockholders Equity	512.57M	512.57M	480.29M	465.36M	468.10M	323.33M
Cash Flow
Free Cash Flow	126.58M	121.89M	86.71M	86.83M	53.17M	35.65M
Operating Cash Flow	134.99M	134.99M	97.19M	94.81M	58.55M	45.55M
Investing Cash Flow	-7.45M	-7.45M	-6.38M	-16.91M	-317.74M	-8.84M
Financing Cash Flow	-116.94M	-116.94M	-112.12M	-62.31M	277.30M	-65.61M

Service Stream Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.15
• 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:SSM, the sentiment is Negative. The current price of 2.15 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.22, and above the 200-day MA of 2.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SSM.

Service Stream Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNP	73 Outperform	AU$1.16B	32.37	25.18%	0.57%	36.30%	82.20%
SSM	70 Outperform	AU$1.33B	22.26	12.08%	2.43%	1.65%	84.19%
SRG	66 Neutral	AU$1.88B	37.31	13.62%	1.85%	23.76%	21.18%
MND	65 Neutral	AU$2.72B	31.94	17.57%	2.65%	7.20%	32.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NWH	56 Neutral	AU$2.42B	86.80	4.71%	3.20%	12.18%	-73.81%

Service Stream Limited Corporate Events

Service Stream Limited Ceases Substantial Holding

Service Stream Limited has announced that it has ceased to be a substantial holder of voting securities in the company as of December 10, 2025. This change in substantial holding reflects a shift in the company’s investment strategy or portfolio management, potentially impacting its influence in corporate decisions and signaling a strategic realignment that stakeholders should monitor closely.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.80 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

Service Stream Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 20, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence future strategic decisions or investor relations.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.80 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 Announces Change in Substantial Holding

Service Stream Limited has reported a change in its substantial holding status as of November 18, 2025. This announcement indicates that State Street Corporation and its subsidiaries, including State Street Global Advisors, have ceased to be substantial holders in the company. This change may impact the company’s shareholder structure and could influence its market dynamics.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.80 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.

Service Stream Director Reduces Shareholding

Service Stream Limited announced a change in the director’s interest as Brett Thomas Gallagher sold 250,000 ordinary shares through JBL-G Pty Ltd as trustee for the Gallagher MSA Family Trust. This transaction, valued at $571,035.30, reduces Gallagher’s indirect holdings to 2,050,000 shares, potentially impacting investor perception and market positioning.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.80 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 Announces Change in Substantial Holding

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 October 30, 2025. This change in holding may impact the company’s shareholder structure and influence its market dynamics, potentially affecting voting interests and strategic decisions.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.80 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 Announces 2025 AGM Results

Service Stream Limited announced the results of its 2025 Annual General Meeting, with all resolutions carried, indicating strong shareholder support. The outcomes reflect positively on the company’s governance and strategic direction, potentially enhancing its industry position and stakeholder confidence.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.50 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 Reports Strong FY25 Financial Performance

Service Stream Limited has reported exceptional financial results for the fiscal year 2025, with a total revenue of $2,420 million, marking a 1.2% increase from the previous corresponding period. The company also saw a significant rise in underlying EBITDA by 13.1% and NPATA by 36.7%, alongside a substantial increase in net cash by $65.7 million, reflecting strong operational performance and financial health.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.50 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 Achieves Record Growth and Secures Major Defence Contract in FY25

Service Stream Limited has reported a successful financial year in 2025, achieving record work-in-hand value and exceeding financial performance targets, resulting in strong shareholder returns. The company secured a transformative $1.6 billion contract with the Department of Defence, enhancing its market position and opening new growth opportunities. Additionally, Service Stream has implemented the Human Organisational Performance framework to improve safety outcomes, achieving a 42% reduction in high potential incidents. The company completed over 55 million service visits nationwide, reflecting its operational strength and commitment to quality service delivery. With a contracted pipeline of $9.2 billion, Service Stream is well-positioned for future growth and revenue diversification.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.50 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

Service Stream Limited has announced a change in the substantial holding of its voting securities, as State Street Corporation and its subsidiaries have ceased to be substantial holders as of September 30, 2025. This change in holding may influence the company’s shareholder dynamics and could have implications for its market positioning and stakeholder relationships.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.50 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 Changes Substantial Holding Status

Service Stream Limited, a subsidiary of State Street Corporation, has announced a change in its substantial holding status. The company has ceased to be a substantial holder as of September 25, 2025. This change in status may impact the company’s voting securities and its association with other entities, reflecting a shift in its market positioning and potentially affecting its stakeholders.

The most recent analyst rating on (AU:SSM) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Service Stream Limited stock, see the AU:SSM Stock Forecast page.