Service Stream Limited (AU:SSM)
ASX:SSM
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Service Stream Limited
(Sydney:SSM)
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Rating:70Outperform
Price Target:
AU$3.00
â–²(50.75% Upside)
Action:Upgraded
Date:09/12/25
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.
Positive Factors
High gross profit margins
Sustained gross margins above 90% indicate persistent pricing power and effective direct cost control in core service delivery. This structural margin advantage supports durable profitability at the gross level, enabling the company to absorb overhead or bid competitively on long-term infrastructure contracts.
Negative Factors
Declining revenue growth
Negative revenue growth signals erosion of top-line scale which can undermine long-term margin expansion and cash flow prospects. Persistent declines make it harder to leverage fixed costs, weaken negotiating leverage with suppliers, and increase reliance on winning new or larger contracts to restore growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross profit margins
Sustained gross margins above 90% indicate persistent pricing power and effective direct cost control in core service delivery. This structural margin advantage supports durable profitability at the gross level, enabling the company to absorb overhead or bid competitively on long-term infrastructure contracts.
Read all positive factors
Service Stream Limited (SSM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.57B
Dividend Yield2.43%
Average Volume (3M)2.18M
Price to Earnings (P/E)29.7
Beta (1Y)0.53
Revenue Growth-5.37%
EPS Growth0.35%
CountryAU
Employees5,300
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.09
Shares Outstanding618,405,400
10 Day Avg. Volume1,397,927
30 Day Avg. Volume2,181,812
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.38
Price to Sales (P/S)0.52
P/FCF Ratio10.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.65Price Target Upside32.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.11
Revenue Forecast (FY)AU$2.45B
Service Stream Limited Business Overview & Revenue Model
Company Description
Service Stream Limited (SSM.AX) is an Australian enterprise specializing in the comprehensive management of infrastructure networks. Its core business encompasses the design, construction, ongoing operation, and maintenance of critical assets acro...
How the Company Makes Money
Service Stream makes money by contracting with infrastructure asset owners and operators to deliver project-based and recurring field services. Its revenue is primarily generated from: (1) project and program delivery fees for network build and up...
Service Stream Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.25B | 2.33B | 2.29B | 2.05B | 1.51B | 803.01M |
| Gross Profit | 181.28M | 2.22B | 2.16B | 96.14M | 59.26M | 78.66M |
| EBITDA | 127.70M | 144.81M | 116.03M | 100.53M | 24.31M | 74.24M |
| Net Income | 52.91M | 59.18M | 32.30M | 4.46M | -36.32M | 29.27M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 1.05B | 1.05B | 1.09B | 1.05B | 547.43M |
| Cash, Cash Equivalents and Short-Term Investments | 87.59M | 73.55M | 62.95M | 84.27M | 68.68M | 50.57M |
| Total Debt | 151.42M | 77.19M | 117.02M | 171.86M | 206.37M | 67.50M |
| Total Liabilities | 502.17M | 533.37M | 568.27M | 625.75M | 581.56M | 224.09M |
| Stockholders Equity | 518.42M | 512.57M | 480.29M | 465.36M | 468.10M | 323.33M |
Cash Flow | ||||||
| Free Cash Flow | 100.63M | 121.89M | 86.71M | 86.83M | 53.17M | 35.65M |
| Operating Cash Flow | 115.24M | 134.99M | 97.19M | 94.81M | 58.55M | 45.55M |
| Investing Cash Flow | -15.94M | -7.45M | -6.38M | -16.91M | -317.74M | -8.84M |
| Financing Cash Flow | -67.14M | -116.94M | -112.12M | -62.31M | 277.30M | -65.61M |
Service Stream Limited Technical Analysis
Positive
1.99
Price Trends
2.18
Positive
2.11
Positive
2.15
Positive
Market Momentum
0.10
Negative
82.36
Negative
85.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SSM, the sentiment is Positive. The current price of 1.99 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.18, and below the 200-day MA of 2.15, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 82.36 is Negative, neither overbought nor oversold. The STOCH value of 85.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SSM.
Service Stream Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$1.57B | 29.66 | 10.26% | 2.43% | -5.37% | 0.35% | |
69 Neutral | AU$2.48B | 44.74 | 13.26% | 1.85% | 22.85% | 30.32% | |
66 Neutral | AU$1.95B | 24.76 | 8.79% | 1.30% | 34.24% | 1.87% | |
65 Neutral | AU$2.93B | 27.33 | 20.27% | 2.65% | 26.80% | 40.18% | |
64 Neutral | AU$5.42B | 34.14 | 7.97% | 3.11% | -4.99% | 120.98% | |
64 Neutral | AU$3.21B | 65.75 | 7.79% | 3.20% | 14.40% | -57.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AU:SSM
Service Stream Limited
2.54
0.69
37.59%
AU:DOW
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6.98
4.30
160.54%
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SRG Global Limited
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AU:MGH
MAAS Group Holdings Ltd.
5.41
1.35
33.12%
Service Stream Limited Corporate Events
State Street Group Ceases to Be Substantial Holder in Service Stream
Jun 4, 2026
State Street Corporation, through several global asset management and trust subsidiaries, has lodged a notice that it has ceased to be a substantial holder in Service Stream Limited as of 2 June 2026. The filing, made under section 671B of the Cor...
Dimensional Entities Steps Back From Major Holding in Service Stream
May 27, 2026
Dimensional Entities has lodged a notice that it has ceased to be a substantial shareholder in Service Stream Limited as of 8 May 2026. The change reflects a reduction in Dimensional’s relevant voting interest below the substantial holding t...
Service Stream to Acquire High-Voltage Specialist RIE Group in Expansion Push
May 25, 2026
Service Stream Limited has agreed to acquire Queensland-based RIE Group, a specialised high-voltage electrical and instrumentation business serving the oil and gas, power generation and renewable energy sectors across the Surat Basin, Darling Down...
State Street Entities Cease to Be Substantial Holders in Service Stream
May 22, 2026
Service Stream Limited has disclosed that entities associated with State Street Corporation have ceased to be substantial shareholders in the company as of 20 May 2026. The change reflects a reduction in State Street’s relevant interest and ...
State Street Ceases to Be Substantial Holder in Service Stream Limited
May 12, 2026
State Street Corporation, through several global asset management subsidiaries, has notified Service Stream Limited that it has ceased to be a substantial shareholder in the company as of 8 May 2026. The change in holding, lodged via a formal subs...
State Street Entities Cease to Be Substantial Holders in Service Stream
May 5, 2026
Service Stream Limited has disclosed that entities related to State Street Corporation, including State Street Bank and Trust Company and several State Street Global Advisors entities, have ceased to be substantial holders in the company as of 1 M...
Service Stream Director Monro Increases Shareholding in On-Market Purchase
Apr 24, 2026
Service Stream Limited has disclosed a change in director Martin Gerard Monro’s holdings, with the board member purchasing an additional 5,000 ordinary fully paid shares on-market, taking his direct interest from 107,500 to 112,500 shares. T...
State Street Group Ceases to Be Substantial Holder in Service Stream
Mar 26, 2026
State Street Corporation and a group of its asset management subsidiaries have ceased to be substantial shareholders in Service Stream Limited as of 24 March 2026, according to a notice lodged under section 671B of the Corporations Act. The filing...
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.