Southern Cross Electrical Engineering Limited (SXE) AI Stock Analysis

• Market Cap: €662.27M
• Dividend Yield: 3.01%
• Average Volume (3M): 700.73K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.68
• Revenue Growth: 45.23%
• EPS Growth: 43.94%
• Country: AU
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 265,973,800
• 10 Day Avg. Volume: 899,865
• 30 Day Avg. Volume: 700,730
• PEG Ratio: 0.35
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 8.08
• 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: €2.38
• Price Target Upside: -4.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: AU$2.50 ▲(0.40% Upside)

Southern Cross Electrical Engineering Limited has a strong financial foundation with robust revenue growth and solid profitability. The technical analysis indicates strong bullish momentum, though caution is advised due to overbought signals. The valuation appears stretched, which could limit upside potential. Overall, the stock is well-positioned but requires careful monitoring of valuation and cash flow trends.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong demand for its services and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects a solid financial position, providing flexibility for future investments and reducing financial risk.

Market Position

The company's established reputation and expertise in complex projects enhance its competitive position, facilitating the acquisition of new contracts.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow suggests potential issues in cash generation, which could impact the company's ability to invest in growth opportunities.

Gross Profit Margin Decrease

A decrease in gross profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Cash Management

Effective cash management is crucial to maintain liquidity and support operations, especially with declining free cash flow growth.

Southern Cross Electrical Engineering Limited Business Overview & Revenue Model

Company Description

Southern 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 Money

SXE generates revenue through multiple streams, primarily by providing electrical and instrumentation services on a contractual basis to major clients in the mining, oil and gas, and infrastructure sectors. The company profits from long-term contracts and project-based work, which include installation, maintenance, and upgrade services for electrical systems. Additionally, SXE engages in joint ventures and partnerships with other firms to expand its service offerings and market reach, enhancing its revenue potential. The company also benefits from an established reputation and strong relationships with key industry players, which contributes to its ability to secure new contracts and maintain a steady flow of income.

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	42.14M	38.91M	32.78M	29.60M
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: 2.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.49 is above the 20-day moving average (MA) of 2.36, above the 50-day MA of 2.32, and above the 200-day MA of 1.91, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 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	76 Outperform	€662.27M	20.77	16.18%	3.01%	45.23%	43.94%
LYL	75 Outperform	AU$531.02M	12.67	29.67%	2.60%	-3.08%	-16.35%
GNP	73 Outperform	AU$1.10B	30.65	25.18%	0.60%	36.30%	82.20%
CVL	72 Outperform	AU$713.47M	16.73	8.35%	4.29%	-21.57%	-34.09%
GNG	71 Outperform	AU$702.93M	20.23	50.61%	5.31%	12.96%	8.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUR	63 Neutral	AU$461.55M	19.67	34.21%	2.37%	3.10%	5.08%

Southern Cross Electrical Engineering Limited Corporate Events

Southern Cross Electrical Engineering Announces Director’s Interest Change

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Graeme Dunn acquiring 372,159 FY26 Performance Rights. This change, approved by shareholders at the recent AGM, reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting the company’s operational focus and stakeholder confidence.

Southern Cross Electrical Engineering Issues Performance Rights

Southern Cross Electrical Engineering Limited announced the issuance of 907,327 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s commitment to incentivizing its workforce and aligning employee interests with corporate goals.

Southern Cross Electrical Engineering Announces AGM Results

Southern Cross Electrical Engineering Limited announced the results of its Annual General Meeting held on October 14, 2025. All resolutions were carried, including the adoption of the remuneration report and the election of directors, indicating strong shareholder support. This outcome reflects positively on the company’s governance and strategic direction, potentially enhancing its market position and stakeholder confidence.

Southern Cross Electrical Engineering Limited: Strategic Growth and Diversification

Southern Cross Electrical Engineering Limited has demonstrated significant growth, increasing its revenues from $200 million in FY17 to $800 million in FY25, largely through strategic acquisitions such as Datatel, Heyday, and the Trivantage Group. The company’s diversification into infrastructure and renewables, alongside its focus on electrification and decarbonisation, positions it strongly within the industry, promising sustained shareholder returns and financial strength.

Southern Cross Electrical Engineering Reports Record FY25 Results and Strategic Growth Plans

Southern Cross Electrical Engineering Limited announced record financial results for the fiscal year 2025, with significant increases in revenue, profitability, and cash balance. The company completed a strategic acquisition of Force Fire to enhance its service offerings and is actively seeking further acquisitions to diversify geographically and expand capabilities. The company anticipates continued growth in EBITDA for FY26, driven by high demand for data centers and renewable energy investments, positioning itself strongly in these sectors.

Director’s Share Acquisition Reflects Confidence in Southern Cross Electrical Engineering

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Karl John Paganin acquiring additional shares through the company’s Dividend Reinvestment Plan. This acquisition increases his total holdings, reflecting confidence in the company’s financial strategies and potentially impacting investor perceptions positively.

Director Increases Stake in Southern Cross Electrical Engineering

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Simon John Buchhorn acquiring additional ordinary shares through the company’s Dividend Reinvestment Plan. This change reflects the director’s increased investment in the company, potentially signaling confidence in the company’s financial health and future prospects.

Southern Cross Electrical Engineering to Quote New Securities on ASX

Southern Cross Electrical Engineering Limited has announced the application for the quotation of 363,600 fully paid ordinary securities on the ASX. This move could potentially enhance the company’s liquidity and market presence, offering stakeholders increased opportunities for investment and engagement.

Southern Cross Electrical Engineering Updates Dividend Distribution Details

Southern Cross Electrical Engineering Limited announced an update regarding its dividend distribution, confirming the Dividend Reinvestment Plan (DRP) price and the foreign exchange rate for dividends paid in New Zealand Dollars to shareholders with a registered address in New Zealand. This update is significant as it provides clarity on the financial aspects of the dividend distribution, potentially impacting the company’s stakeholders by ensuring accurate and transparent financial communication.

SCEE Group Announces 2025 Annual General Meeting

Southern Cross Electrical Engineering Limited has announced its 2025 Annual General Meeting, scheduled for October 14, 2025, in Perth, WA. The meeting will provide shareholders with the opportunity to discuss company operations and future strategies, potentially impacting stakeholder decisions and company direction.

SCEE’s Strategic Growth and Diversification Drive Revenue Surge

Southern Cross Electrical Engineering Limited (SCEE) has demonstrated significant growth and diversification, both geographically and across market sectors, with a strong focus on infrastructure and renewables. The company’s strategic acquisitions have played a crucial role in its revenue increase and expansion into new sectors, enhancing its industry positioning and offering promising returns for stakeholders.