Service Stream Limited (AU:SSM)
ASX:SSM
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Service Stream Limited
(Sydney:SSM)
Select Model
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Rating:70Outperform
Price Target:
AU$2.00
â–²(4.17% Upside)
Action:UpgradedDate: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 Margin
Consistently very high gross margins indicate durable pricing power and an efficient cost base in Service Stream's field-services model. That margin cushion supports reinvestment, helps absorb input cost swings, and underpins long-term service profitability despite lumpy contract timing.
Negative Factors
Inconsistent Revenue Growth
A declining and inconsistent top-line trend signals exposure to customer capital cycles and the lumpy nature of project work. Over time this undermines scale economics, complicates workforce utilisation and planning, and can prevent steady margin expansion and investment in growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Profit Margin
Consistently very high gross margins indicate durable pricing power and an efficient cost base in Service Stream's field-services model. That margin cushion supports reinvestment, helps absorb input cost swings, and underpins long-term service profitability despite lumpy contract timing.
Read all positive factors
Service Stream Limited (SSM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.19B
Dividend Yield2.43%
Average Volume (3M)2.18M
Price to Earnings (P/E)12.9
Beta (1Y)0.49
Revenue Growth1.65%
EPS Growth84.19%
CountryAU
Employees5,300
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.06
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$2.58Price Target Upside34.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.11
Revenue Forecast (FY)AU$2.48B
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, mainte...
How the Company Makes Money
Service Stream makes money by providing contracted services to large infrastructure asset owners—most notably telecommunications carriers and utility network operators—who outsource parts of their network build and ongoing maintenance. Revenue is ...
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
Negative
1.92
Price Trends
2.08
Negative
2.13
Negative
2.09
Negative
Market Momentum
-0.05
Negative
42.33
Neutral
15.85
Positive
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 1.92 is below the 20-day moving average (MA) of 1.94, below the 50-day MA of 2.08, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$1.40B | 11.36 | 25.18% | 0.57% | 36.30% | 82.20% | |
70 Outperform | AU$1.19B | 12.85 | 12.08% | 2.43% | 1.65% | 84.19% | |
66 Neutral | AU$1.66B | 17.28 | 13.62% | 1.85% | 23.76% | 21.18% | |
65 Neutral | AU$2.86B | 10.17 | 20.27% | 2.65% | 7.20% | 32.60% | |
64 Neutral | AU$2.58B | 8.10 | 7.79% | 3.20% | 12.18% | -73.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AU:SSM
Service Stream Limited
1.95
0.23
13.08%
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28.63
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NRW Holdings Limited
5.56
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2.54
1.38
118.40%
AU:GNP
GenusPlus Group Ltd.
7.50
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165.02%
Service Stream Limited Corporate Events
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...
Pinnacle Exits Substantial Holder Position in Service Stream
Mar 13, 2026
Pinnacle Investment Management Group Limited and its listed subsidiaries have notified Service Stream Limited that they have ceased to be substantial shareholders in the company as of 10 March 2026. The change reflects a reduction in Pinnacle̵...
State Street Group Ceases to Be Substantial Holder in Service Stream
Mar 11, 2026
State Street Corporation and its asset management subsidiaries have notified Service Stream that they have ceased to be substantial shareholders in the company as of 9 March 2026 under Australian Corporations Act disclosure rules. The notice, lodg...
Service Stream Director Leigh Mackender Increases Shareholding via On-Market Purchase
Mar 10, 2026
Service Stream has disclosed a change in the shareholding of director Leigh Geoffrey Mackender, who has increased his direct interest in the company through an on-market purchase. Mackender acquired 130,000 ordinary fully paid shares on 10 March 2...
State Street Group Ceases to Be Substantial Holder in Service Stream
Mar 9, 2026
State Street Corporation, through several asset management and trust subsidiaries, has filed a notice that it has ceased to be a substantial holder in Service Stream Limited as of 5 March 2026. The change reflects that its aggregated relevant inte...
State Street Group Ceases to Be Substantial Shareholder in Service Stream
Mar 5, 2026
State Street Corporation, through various global asset management and trustee subsidiaries, has filed a notice that it has ceased to be a substantial holder in Service Stream Limited as of 3 March 2026. The change, reported under Australian Corpor...
Service Stream Director Increases Shareholding via On-Market Purchase
Feb 27, 2026
Service Stream Limited has disclosed a change in director Martin Gerard Monro’s shareholding, reflecting an on-market purchase of additional ordinary fully paid shares in the company. The transaction indicates ongoing engagement by the direc...
Service Stream Issues FY26 Half-Year Results Presentation with Acknowledgment of Country
Feb 25, 2026
Service Stream has released materials titled “FY26 Half Year Results Presentation” covering the six months ended 31 December 2025, but the excerpt contains no financial, operational, or strategic information for that period. The only s...
Service Stream lifts earnings, cash flow and order book as it expands into Defence
Feb 25, 2026
Service Stream reported first-half FY26 results showing modest earnings growth and stronger margins despite a decline in top-line revenue. EBITDA from operations rose 2.3% to $75.3 million, with the group EBITDA-A margin improving by 50 basis poin...
Service Stream lifts interim dividend despite softer first-half profit
Feb 25, 2026
Service Stream Limited has reported results for the half year to 31 December 2025 showing revenue from ordinary activities of $1.14 billion, down 6.4% on the prior corresponding period, with statutory net profit after tax falling 19% to $26.8 mill...
State Street Group Ceases to Be Substantial Holder in Service Stream
Feb 6, 2026
State Street Corporation, through various 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 4 February 2026. The filing, made under section 671B of the...
Macquarie Group Ceases to Be Substantial Holder in Service Stream
Feb 6, 2026
Macquarie Group Limited and its extensive network of controlled entities have lodged a notice that they have ceased to be a substantial shareholder in Service Stream Limited, formally ending their status as a major holder of voting securities in t...
State Street Group Ceases to Be Substantial Holder in Service Stream
Jan 2, 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 30 December 2025. The change, disclosed under Australian Co...
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.