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Southern Cross Electrical Engineering Limited (AU:SXE)
ASX:SXE
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Southern Cross Electrical Engineering Limited (SXE) AI Stock Analysis

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AU:SXE

Southern Cross Electrical Engineering Limited

(Sydney:SXE)

Rating:66Neutral
Price Target:
AU$2.00
▲(12.36%Upside)
Southern Cross Electrical Engineering Limited's solid financial performance, characterized by strong revenue growth and profitability, is the primary driver of its overall score. The technical analysis presents a mixed outlook, with potential risks due to bearish momentum. Valuation metrics support fair value with moderate return potential, contributing positively to the score.
Positive Factors
Awards and Contracts
Awards totaling over $70m for Western Sydney International Airport and Western Sydney Hyperscale Data Centre provide further evidence of strong execution and pipeline conversion.
Strategic Positioning
These wins strengthen medium-term visibility and reinforce Heyday’s position in the NSW, ACT data centre and electrical market.
Negative Factors
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 (SXE) vs. iShares MSCI Australia ETF (EWA)

Southern Cross Electrical Engineering Limited Business Overview & Revenue Model

Company DescriptionSouthern Cross Electrical Engineering Limited provides electrical, instrumentation, communication, and maintenance services in Australia. It offers electrical and instrumentation (E&I) construction services, which include installation and commissioning of greenfield and brownfield upgrade projects in metropolitan, remote, and challenging environments. The company also provides fixed plant E&I construction; distribution and transmission line installation; substations, transformer, and switchyard installations; HV, LV control, instrument, and communication cabling and terminations; auditing, rectifications, and completions; constructability reviews; primary and secondary injection protection testing; instrumentation, loop checking, and calibrations; hazardous area installations; instrument air and tubing installation; procurement and logistics management; pre-commissioning, completions, and start-ups; and comprehensive handover documentation services. In addition, it offers E&I services and maintenance, such as brownfields operational support, programed and breakdown maintenance, planned shutdown management, and sustaining capital project development services; and in-house design and construct capability, asset life cycle management, hazardous area auditing and verification, procurement, and inspection and testing services. Further, the company provides communications services, including integration and installation of communications technologies comprising communication equipment, data cabling, and fiber optics. It serves mining, and oil and gas; industrial, utilities, and energy; telecommunications and data centers; commercial developments; and public infrastructure and defense. The company was founded in 1978 and is based in Perth, Australia.
How the Company Makes MoneySouthern 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 exhibits robust financial health with strong revenue growth, improved profitability, and a solid balance sheet with low leverage. Despite a decline in free cash flow growth, the company's consistent cash generation and strong equity position provide a stable financial foundation in the competitive construction industry.
Income Statement
75
Positive
Southern Cross Electrical Engineering Limited has shown strong revenue growth with a 18.8% increase from 2023 to 2024. Gross profit margin improved to 9.32% in 2024, reflecting better cost management. The net profit margin also increased to 3.97%, indicating improved profitability. While margins are improving, competition in the construction industry may pose challenges for sustaining this growth.
Balance Sheet
80
Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.04, indicating minimal leverage. The return on equity improved to 11.47%, showcasing efficient use of equity. The equity ratio of 52.42% demonstrates strong capital structure stability. Overall, the company is well-positioned financially to withstand industry fluctuations.
Cash Flow
70
Positive
The free cash flow growth rate showed a decline of 24.39% from 2023 to 2024, impacting the cash flow score. However, the company maintains a strong operating cash flow to net income ratio of 1.71, indicating good cash generation relative to net income. Despite a decrease in free cash flow, the company continues to manage cash flows effectively.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue551.87M464.71M553.28M370.21M415.10M
Gross Profit82.67M44.62M41.94M24.86M25.47M
EBITDA40.89M39.24M32.78M29.89M21.74M
Net Income21.91M20.09M15.27M13.76M10.87M
Balance Sheet
Total Assets364.76M318.43M345.51M337.24M261.74M
Cash, Cash Equivalents and Short-Term Investments84.08M77.65M53.08M51.01M55.27M
Total Debt8.10M10.42M10.96M8.27M5.97M
Total Liabilities173.59M136.34M171.22M166.06M103.37M
Stockholders Equity191.16M182.10M174.29M171.17M158.37M
Cash Flow
Free Cash Flow33.94M44.89M26.19M27.41M9.52M
Operating Cash Flow37.56M48.17M29.67M29.28M10.11M
Investing Cash Flow-15.64M-8.03M-12.03M-23.63M-5.73M
Financing Cash Flow-15.50M-15.57M-15.56M-9.92M-2.36M

Southern Cross Electrical Engineering Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.78
Price Trends
50DMA
1.76
Positive
100DMA
1.73
Positive
200DMA
1.64
Positive
Market Momentum
MACD
0.02
Negative
RSI
50.50
Neutral
STOCH
50.55
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 1.78 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.76, and above the 200-day MA of 1.64, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
AU$615.32M10.4112.62%5.39%15.44%-4.13%
66
Neutral
€486.51M17.0515.15%4.21%49.23%41.42%
58
Neutral
HK$14.94B4.73-2.78%5.01%3.80%-54.55%
$300.75M9.3036.14%0.41%
76
Outperform
AU$610.84M15.7058.99%5.21%25.12%31.13%
71
Outperform
AU$382.37M17.0237.07%2.86%-1.02%-7.39%
67
Neutral
AU$773.00M31.9219.31%0.58%35.02%48.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SXE
Southern Cross Electrical Engineering Limited
1.78
0.05
2.95%
LYOPF
Lycopodium Limited
7.24
-1.17
-13.91%
AU:GNP
GenusPlus Group Ltd.
4.30
2.17
101.88%
AU:DUR
Duratec Limited
1.48
0.25
20.33%
AU:GNG
GR Engineering Services Ltd
3.84
1.99
107.57%
AU:CVL
Civmec Singapore Limited Shs Chess Deposit Interests Repr 1 Sh
1.21
-0.01
-0.82%

Southern Cross Electrical Engineering Limited Corporate Events

SCEE Group to Announce FY25 Financial Results
Jul 22, 2025

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
Jun 16, 2025

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.

Southern Cross Electrical Engineering Issues New Performance Rights
May 2, 2025

Southern Cross Electrical Engineering Limited announced the issuance of 241,671 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions until the end of the restriction period, indicating a strategic move to incentivize and retain employees, which could enhance operational performance and stakeholder value.

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.Date of analysis: Jul 16, 2025