Southern Cross Electrical Engineering Limited (SXE) AI Stock Analysis

• Market Cap: €517.94M
• Dividend Yield: 3.85%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.52
• Revenue Growth: 45.23%
• EPS Growth: 43.94%
• Country: AU
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 265,610,200
• 10 Day Avg. Volume: 1,089,153
• 30 Day Avg. Volume: 1,039,337
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €2.45
• Price Target Upside: 25.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: AU$2.00 ▲(2.56% Upside)

Southern Cross Electrical Engineering Limited is well-positioned with strong financial performance and positive technical indicators. The stock's valuation is fair, with an attractive dividend yield. The main risk is the decline in free cash flow growth, which requires careful management.

Positive Factors

Client Relationships

Southern Cross Electrical Engineering announced a number of multi-year Services and manufacturing awards, worth over $110m, further solidifying its strong client relationships and recurring revenue.

Market Position

Southern Cross Electrical is seen as a primary beneficiary of the ever increasing data centre investment within Australia.

Strategic Acquisition

Strategic Acquisition: SXE acquires Force Fire Holdings, a fire safety solutions provider in NSW & QLD, complementing its electrical, communications, and security offerings.

Negative Factors

Short-term Financial Impact

No Impact on FY25 EBITDA Target: FY25 revenue expected to be offset by costs; no change to SXE’s $53M.

Southern Cross Electrical Engineering Limited Business Overview & Revenue Model

Company Description

Southern Cross Electrical Engineering Limited (SXE) is an Australian-based company that specializes in electrical, instrumentation, communication, and maintenance services. Operating across various sectors including infrastructure, resources, and energy, SXE offers comprehensive solutions tailored to meet the needs of a diverse client base. The company is known for its expertise in delivering large-scale projects and providing ongoing operational support.

How the Company Makes Money

Southern Cross Electrical Engineering Limited generates revenue primarily through its provision of specialized electrical and instrumentation services. These services are offered to industries such as mining, oil and gas, infrastructure, and utilities. Key revenue streams include project-based contracts for the design, installation, and commissioning of electrical systems, as well as maintenance contracts that ensure the ongoing functionality and efficiency of these systems. Additionally, SXE benefits from strategic partnerships and collaborations that enhance its service offerings and market reach. The company's ability to secure long-term contracts and maintain a strong order book significantly contributes to its financial performance.

Southern Cross Electrical Engineering Limited Financial Statement Overview

Summary

Southern Cross Electrical Engineering Limited demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage and strong equity returns. However, the decline in free cash flow growth suggests a need for careful cash management.

Income Statement

Southern Cross Electrical Engineering Limited has shown a strong revenue growth rate of 15.53% in the latest period, indicating robust top-line expansion. The gross profit margin has slightly decreased from the previous year, but remains healthy at 13.22%. The net profit margin is stable at 3.95%, reflecting consistent profitability. EBIT and EBITDA margins are solid, supporting operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.04, suggesting prudent financial leverage. Return on equity is strong at 15.48%, indicating effective use of equity capital. The equity ratio is healthy, reflecting a stable financial position with a good proportion of equity financing.

Cash Flow

Operating cash flow is strong, but free cash flow has seen a decline of 18.98%, which could indicate potential challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from earnings. Free cash flow to net income ratio is high, indicating efficient cash flow management relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	801.45M	801.45M	551.87M	464.71M	553.28M	370.21M
Gross Profit	85.39M	105.92M	82.67M	44.62M	41.94M	24.86M
EBITDA	54.03M	57.37M	40.89M	39.24M	32.78M	29.89M
Net Income	31.67M	31.67M	21.91M	20.09M	15.27M	13.76M
Balance Sheet
Total Assets	421.04M	421.04M	364.76M	318.43M	345.51M	337.24M
Cash, Cash Equivalents and Short-Term Investments	88.57M	88.57M	84.08M	77.65M	53.08M	51.01M
Total Debt	8.21M	8.21M	8.10M	10.42M	10.96M	8.27M
Total Liabilities	216.44M	216.44M	173.59M	136.34M	171.22M	166.06M
Stockholders Equity	204.61M	204.61M	191.16M	182.10M	174.29M	171.17M
Cash Flow
Free Cash Flow	59.81M	59.81M	33.94M	44.89M	26.19M	27.41M
Operating Cash Flow	64.79M	64.79M	37.56M	48.17M	29.67M	29.28M
Investing Cash Flow	-37.81M	-37.81M	-15.64M	-8.03M	-12.03M	-23.63M
Financing Cash Flow	-22.49M	-22.49M	-15.50M	-15.57M	-15.56M	-9.92M

Southern Cross Electrical Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.95
• 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:SXE, the sentiment is Positive. The current price of 1.95 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 1.84, and above the 200-day MA of 1.68, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 36.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SXE.

Southern Cross Electrical Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXE	71 Outperform	€517.94M	16.26	16.18%	3.85%	45.23%	43.94%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
LYOPF	―	$323.01M	10.52	29.67%	3.36%	―	―
DUR	76 Outperform	AU$444.09M	18.96	34.21%	2.46%	3.10%	5.08%
GNG	70 Outperform	AU$691.50M	20.19	50.61%	5.33%	12.96%	8.19%
CVL	70 Outperform	AU$645.83M	15.17	8.35%	4.71%	-21.57%	-34.09%
GNP	67 Neutral	AU$919.86M	25.84	25.18%	0.48%	36.30%	82.20%

Southern Cross Electrical Engineering Limited Corporate Events

SCEE Group to Announce FY25 Financial Results

Southern Cross Electrical Engineering Limited announced it will release its full-year financial results for 2025 on August 20, 2025. A webcast presentation of the results will be conducted by the company’s CEO and CFO, providing insights into the company’s financial performance and strategic positioning.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.25 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE Group Secures Over $70 Million in New Project Awards

Southern Cross Electrical Engineering Limited, through its subsidiary Heyday, has secured over $70 million in project awards for work on the Western Sydney Airport and a hyperscale data center in Sydney. These projects, which include critical infrastructure for airport operations and additional electrical works at the data center, are set to commence immediately and are expected to be completed by 2027 and 2026, respectively. This expansion underscores SCEE’s strategic positioning in major infrastructure developments, promising continued economic activity and employment opportunities in the region.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.