Southern Cross Electrical Engineering Limited (SXE) AI Stock Analysis

• Market Cap: €606.42M
• Dividend Yield: 3.29%
• Average Volume (3M): 700.73K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.45
• 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: 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: €2.35
• Price Target Upside: 3.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: AU$2.00 ▼(-12.28% Downside)

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

Negative Factors

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	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: 2.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.28 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 2.00, and above the 200-day MA of 1.73, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 74.51 is Negative, neither overbought nor oversold. The STOCH value of 91.94 is Negative, 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
DUR	76 Outperform	AU$518.28M	22.09	34.21%	2.11%	3.10%	5.08%
LYL	75 Outperform	$490.39M	11.70	29.67%	2.82%	-3.08%	-16.35%
GNP	73 Outperform	AU$1.05B	29.38	25.18%	0.62%	36.30%	82.20%
SXE	71 Outperform	€606.42M	19.02	16.18%	3.29%	45.23%	43.94%
CVL	66 Neutral	AU$687.99M	16.13	8.35%	4.35%	-21.57%	-34.09%
GNG	65 Neutral	AU$631.93M	18.43	50.61%	5.73%	12.96%	8.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.