Service Stream Limited (SSM) AI Stock Analysis

• Market Cap: €1.19B
• Dividend Yield: 2.59%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.35
• Revenue Growth: 6.66%
• EPS Growth: 124.87%
• Country: AU
• Employees: 5,300
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 615,953,060
• 10 Day Avg. Volume: 928,913
• 30 Day Avg. Volume: 1,731,212
• PEG Ratio: 0.38
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.85
• 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: €2.09
• Price Target Upside: 8.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: AU$2.00 ▲(3.63%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 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 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.29B	2.05B	1.51B	803.01M	927.95M
Gross Profit	2.16B	96.14M	59.26M	78.66M	108.39M
EBITDA	112.65M	100.53M	24.31M	75.19M	105.56M
Net Income	32.30M	4.46M	-36.32M	29.27M	49.31M
Balance Sheet
Total Assets	1.05B	1.09B	1.05B	547.43M	588.68M
Cash, Cash Equivalents and Short-Term Investments	62.95M	84.27M	68.68M	50.57M	79.47M
Total Debt	117.02M	171.86M	206.37M	67.50M	93.36M
Total Liabilities	568.27M	625.75M	581.56M	224.09M	266.88M
Stockholders Equity	480.29M	465.36M	468.10M	323.33M	321.80M
Cash Flow
Free Cash Flow	86.71M	86.83M	53.17M	35.65M	49.86M
Operating Cash Flow	97.19M	94.81M	58.55M	45.55M	57.68M
Investing Cash Flow	-6.38M	-16.91M	-317.74M	-8.84M	-6.49M
Financing Cash Flow	-112.12M	-62.31M	277.30M	-65.61M	-42.53M

Service Stream Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.93
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 1.93 is below the 20-day moving average (MA) of 1.94, above the 50-day MA of 1.93, and above the 200-day MA of 1.71, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSM	72 Outperform	€1.19B	22.47	10.90%	2.59%	6.66%	124.87%
Sector *	71 Outperform	¥266.83B	13.99	8.47%	2.88%	6.37%	12.94%
8MP	―	€1.07B	22.79	15.97%	3.62%	―	―
3NR	―	€827.30M	11.37	18.01%	5.28%	―	―
JLG	69 Neutral	AU$1.11B	27.80	8.61%	1.84%	-10.74%	-16.14%
SRG	69 Neutral	AU$978.41M	23.28	11.36%	3.09%	25.40%	41.18%
GNP	67 Neutral	AU$810.84M	33.48	19.31%	0.56%	35.02%	48.51%

Service Stream Limited Corporate Events

Service Stream Limited to Announce FY2025 Results

Service Stream Limited announced that it will release its financial results for the full year ending 30 June 2025 on 20 August 2025, before the market opens. An analyst briefing will follow the release, which will be webcast and accessible through the company’s website, potentially impacting stakeholders and offering insights into the company’s performance and strategic direction.

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 Announces Change in Substantial Holding

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

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

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

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

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

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

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

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

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

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.