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Servcorp Limited
(Sydney:SRV)
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Rating:60Neutral
Price Target:
AU$6.50
▲(5.86% Upside)
Action:Downgraded
Date:08/22/26
The score is driven by solid underlying cash flow and improved profitability/returns, balanced against a sharply negative recent revenue growth profile and elevated leverage. Technical indicators are notably bearish (price below key moving averages with negative MACD), while valuation is a positive offset due to the low P/E and strong dividend yield.
Positive Factors
Strong Cash Generation
Strong operating cash flow and solid free cash flow indicate that reported earnings are converting into liquidity. This supports ongoing investment in premium locations, service delivery, debt obligations, and shareholder returns over the medium term.
Negative Factors
Elevated Leverage
Persistent leverage limits financial flexibility and increases refinancing and downturn sensitivity. Because workspace demand and occupancy can be cyclical, a softer operating environment could place greater pressure on cash allocation and balance-sheet management.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Strong operating cash flow and solid free cash flow indicate that reported earnings are converting into liquidity. This supports ongoing investment in premium locations, service delivery, debt obligations, and shareholder returns over the medium term.
Read all positive factors
Servcorp Limited (SRV) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$612.92M
Dividend Yield4.78%
Average Volume (3M)82.87K
Price to Earnings (P/E)9.3
Beta (1Y)0.63
Revenue Growth4.14%
EPS Growth22.53%
CountryAU
Employees709
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding99,824,890
10 Day Avg. Volume85,255
30 Day Avg. Volume82,872
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)2.56
Price to Sales (P/S)1.79
P/FCF Ratio4.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$10.74Price Target Upside74.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.78
Revenue Forecast (FY)AU$386.00M
Servcorp Limited Business Overview & Revenue Model
Company Description
Servcorp Limited delivers a full spectrum of professional workspace solutions, featuring high-end serviced offices, adaptable virtual office packages, and collaborative coworking areas. Their offerings are complemented by vital IT, communications,...
How the Company Makes Money
Servcorp primarily makes money by selling flexible workspace and business support on recurring subscription-style arrangements and usage-based fees. Key revenue streams include: (1) Serviced offices: Fees paid by clients for private, fully furnish...
Servcorp Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
71
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 364.05M | 349.86M | 314.11M | 292.72M | 272.53M |
| Gross Profit | 64.57M | 349.86M | 238.05M | 116.29M | 106.80M |
| EBITDA | 210.22M | 193.84M | 171.02M | 159.32M | 159.75M |
| Net Income | 65.64M | 53.12M | 39.04M | 11.07M | 28.02M |
Balance Sheet | |||||
| Total Assets | 728.06M | 722.18M | 674.35M | 640.97M | 582.67M |
| Cash, Cash Equivalents and Short-Term Investments | 153.08M | 144.43M | 103.30M | 118.82M | 108.23M |
| Total Debt | 337.36M | 363.17M | 371.20M | 629.65M | 532.14M |
| Total Liabilities | 473.02M | 488.60M | 479.74M | 453.19M | 384.42M |
| Stockholders Equity | 255.04M | 233.59M | 194.62M | 187.78M | 198.25M |
Cash Flow | |||||
| Free Cash Flow | 132.21M | 191.84M | 129.51M | 134.94M | 130.74M |
| Operating Cash Flow | 176.63M | 191.84M | 165.79M | 155.53M | 145.58M |
| Investing Cash Flow | -41.30M | -32.45M | -38.69M | -24.66M | -12.62M |
| Financing Cash Flow | -126.14M | -150.12M | -125.19M | -122.81M | -122.27M |
Servcorp Limited Technical Analysis
Negative
6.14
Price Trends
6.44
Negative
6.46
Negative
6.75
Negative
Market Momentum
-0.10
Positive
40.09
Neutral
22.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRV, the sentiment is Negative. The current price of 6.14 is below the 20-day moving average (MA) of 6.43, below the 50-day MA of 6.44, and below the 200-day MA of 6.75, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SRV.
Servcorp Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$9.00B | 8.47 | 9.83% | 4.90% | -7.59% | 178.60% | |
74 Outperform | AU$7.30B | 10.54 | 7.30% | 5.59% | 6.20% | 897.67% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$6.24B | 13.14 | 4.83% | 6.46% | -28.16% | 250.74% | |
60 Neutral | AU$612.92M | 9.29 | 26.01% | 4.70% | 4.14% | 22.53% | |
56 Neutral | AU$1.58B | 17.48 | 3.90% | 8.60% | -0.03% | ― | |
45 Neutral | AU$1.96B | -2.61 | -14.46% | 8.12% | -30.04% | -432.70% |
* Real Estate Sector Average
AU:SRV
Servcorp Limited
6.14
-0.42
-6.35%
AU:DXS
Dexus
5.78
-1.33
-18.69%
AU:GPT
GPT Group
4.65
-0.73
-13.52%
AU:LLC
Lendlease Group
2.86
-2.39
-45.52%
AU:MGR
Mirvac Group
1.82
-0.44
-19.58%
AU:GOZ
Growthpoint Properties Australia
2.08
-0.22
-9.68%
Servcorp Limited Corporate Events
Servcorp Posts Record Year as Strategy Drives Global Workspace Growth
Aug 20, 2026
Servcorp Limited, a Sydney-headquartered provider of serviced offices, virtual offices and coworking spaces, is pursuing global leadership in premium flexible workspace solutions. Its operations are underpinned by formal governance policies and de...
Servcorp Declares Interim Dividend of AUD 0.16 Per Share
Aug 20, 2026
Servcorp Limited has declared an ordinary dividend of AUD 0.16 per fully paid share for the six-month period ended 30 June 2026, reinforcing its pattern of returning capital to shareholders. The dividend will trade ex-dividend on 16 September 2026...
Servcorp boosts profit, dividends and asset backing in FY26
Aug 20, 2026
Servcorp Limited reported a 4% increase in revenue and other income to $367.5 million for the year ended 30 June 2026, with net profit attributable to members rising 24% to $65.6 million. The company lifted both interim and final dividends to 16 c...
Servcorp strengthens board as leadership transition looms
Aug 3, 2026
Servcorp Limited, a leading global operator of executive serviced offices, virtual offices and advanced IT and business infrastructure, runs a network spanning 136 floors in 38 cities across 19 countries. Its offerings target businesses that requi...
Servcorp Seeks ASX Quotation for 10,000 New Ordinary Shares
Jun 28, 2026
Servcorp Limited has applied for quotation on the ASX of 10,000 ordinary fully paid shares, with an issue date of 29 June 2026. The relatively small issuance suggests routine capital management or the conversion of existing options or other conver...
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.