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Servcorp Limited
(Sydney:SRV)
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Rating:60Neutral
Price Target:
AU$5.50
â–¼(-10.42% Downside)
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 being converted into financial resources. This supports reinvestment, debt servicing, and shareholder returns, giving Servcorp greater capacity to fund operations through the next several quarters.
Negative Factors
Extreme Revenue Decline
The sharp latest-period revenue contraction materially weakens confidence in Servcorp’s near-term growth trajectory. Even with improved margins, sustained revenue pressure could reduce operating scale, limit reinvestment, and make future earnings more dependent on cost control.
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 being converted into financial resources. This supports reinvestment, debt servicing, and shareholder returns, giving Servcorp greater capacity to fund operations through the next several quarters.
Read all positive factors
Servcorp Limited (SRV) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$534.74M
Dividend Yield6.1%
Average Volume (3M)144.00K
Price to Earnings (P/E)8.0
Beta (1Y)0.57
Revenue Growth4.14%
EPS Growth22.53%
CountryAU
Employees709
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding101,855,090
10 Day Avg. Volume110,385
30 Day Avg. Volume143,998
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)0.75
Revenue Forecast (FY)AU$393.00M
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
5.73
Negative
6.03
Negative
6.35
Negative
Market Momentum
-0.15
Positive
34.46
Neutral
26.58
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 above the 20-day moving average (MA) of 5.47, above the 50-day MA of 5.73, and below the 200-day MA of 6.35, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 34.46 is Neutral, neither overbought nor oversold. The STOCH value of 26.58 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$9.10B | 8.64 | 9.83% | 5.11% | -7.59% | 178.60% | |
74 Outperform | AU$7.02B | 10.54 | 7.30% | 5.23% | 6.20% | 897.67% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$6.14B | 13.07 | 4.83% | 6.43% | -28.16% | 250.74% | |
60 Neutral | AU$534.74M | 7.95 | 26.01% | 6.10% | 4.14% | 22.53% | |
56 Neutral | AU$1.48B | 16.43 | 3.90% | 9.41% | -0.03% | ― | |
45 Neutral | AU$1.64B | -2.18 | -14.46% | 6.56% | -30.04% | -432.70% |
* Real Estate Sector Average
AU:SRV
Servcorp Limited
5.25
-1.80
-25.53%
AU:DXS
Dexus
5.75
-1.43
-19.97%
AU:GPT
GPT Group
4.75
-0.56
-10.55%
AU:LLC
Lendlease Group
2.40
-3.08
-56.20%
AU:MGR
Mirvac Group
1.81
-0.49
-21.34%
AU:GOZ
Growthpoint Properties Australia
1.96
-0.49
-19.91%
Servcorp Limited Corporate Events
Servcorp Director Increases Indirect Shareholding via Off-Market Trade
Oct 22, 2026
Servcorp Limited has disclosed a change in the relevant interests of director Alfred George Moufarrige in the company’s securities. The filing reports that Moufarrige, through Omnioffices Pty Ltd, acquired 50,000 additional ordinary shares v...
Servcorp Director Alfred Moufarrige Lifts Indirect Stake in Off-Market Share Purchase
Oct 20, 2026
Servcorp Limited has disclosed a change in the indirect shareholding of director Alfred George Moufarrige, reflecting an increase in his interests in the company. Through Omnioffices Pty Ltd, where he is a director, Moufarrige acquired an addition...
Servcorp Director Alfred Moufarrige Increases Indirect Shareholding
Oct 7, 2026
Servcorp Limited has disclosed a change in the holdings of director Alfred George Moufarrige, indicating a modest increase in his indirect interest in the company’s ordinary shares. Through on‑market trades executed by Sovori Pty Ltd a...
Servcorp Maps Out Governance Disclosures in ASX Appendix 4G Filing
Oct 7, 2026
Servcorp Limited has lodged its Appendix 4G with the ASX for the year ended 30 June 2026, detailing where investors can access its corporate governance statement and related disclosures. The statement, current as at 20 August 2026, is available on...
Servcorp Marks Record Profits as Global Workspace Network Expands
Oct 7, 2026
Servcorp’s 2026 annual report highlights its evolution into a leading global workspace solutions provider, combining serviced offices and coworking with virtual offices, meeting facilities and proprietary IT platforms. The company underscore...
Servcorp Sets November Date for Hybrid 2026 AGM
Oct 7, 2026
Servcorp Limited has issued a formal notice convening its Annual General Meeting for 12 November 2026 at 4:00pm AEDT, to be conducted as a hybrid gathering at Level 63, 25 Martin Place, Sydney. Shareholders are advised that proxy forms must be lod...
Servcorp Seeks ASX Quotation for Additional Ordinary Shares
Sep 29, 2026
Servcorp Limited has lodged a new application with the ASX for the quotation of an additional 200 ordinary fully paid shares under its existing SRV code. The small issuance, dated September 29, 2026, reflects routine capital management activity re...
Servcorp Director Alfred Moufarrige Increases Indirect Shareholding
Sep 16, 2026
Servcorp Limited has reported a change in the relevant interests of director Alfred George Moufarrige in the company’s ordinary shares. Through Sovori Pty Ltd, where he is a director, Moufarrige acquired an additional 63,077 ordinary shares ...
Servcorp Director Alfred Moufarrige Increases Indirect Shareholding via Option Exercise
Sep 14, 2026
Servcorp Limited has disclosed a change in director interests, reporting that director Alfred George Moufarrige increased his indirect holding in the company. The additional stake was acquired through Sovori Pty Ltd by exercising options over ordi...
Servcorp lists 225,000 new ordinary shares on ASX
Sep 14, 2026
Servcorp Limited has applied for quotation on the ASX of 225,000 new ordinary fully paid shares under code SRV, effective 14 September 2026. The issuance arises from the exercise or conversion of existing options or other convertible securities, s...
Servcorp Seeks ASX Quotation for 460,000 New Shares
Sep 11, 2026
Servcorp Limited has applied for quotation on the ASX of 460,000 new ordinary fully paid shares under its issuer code SRV. The application represents an increase in the company’s quoted capital base and reflects securities issued or converte...
Servcorp Director John Wigglesworth Initiates Shareholding with On-Market Purchase
Sep 7, 2026
Servcorp Limited has disclosed a change in director’s interests, confirming that director John Wigglesworth has acquired 5,000 ordinary shares in the company via an on-market trade. The purchase, valued at approximately $30,500, marks his fi...
Servcorp seeks ASX quotation for 1.35m new shares
Sep 7, 2026
Servcorp Limited has lodged a new application with the ASX for quotation of additional ordinary fully paid shares under its SRV ticker. The filing covers 1,345,000 newly issued securities dated September 7, 2026, expanding the company’s quot...
Servcorp Appoints New Director With No Initial Equity Interests
Sep 2, 2026
Servcorp Limited operates in the flexible workspace and serviced office industry, providing shared offices, virtual office services, and coworking spaces to corporate and small-business clients. The company focuses on offering professional office ...
Servcorp Director Alfred Moufarrige Increases Indirect Shareholding
Aug 26, 2026
Servcorp Limited has disclosed a change in the indirect shareholding of director Alfred George Moufarrige following an on-market trade. Through Omnioffices Pty Ltd, where he is a director, Moufarrige purchased 50,000 Servcorp ordinary shares for $...
Servcorp Director Mark Vaile Increases Indirect Shareholding
Aug 26, 2026
Servcorp Limited has reported a change in director Mark Vaile’s indirect shareholding in the company, reflecting a modest increase in his equity exposure. Vaile, through Wendmar Pty Ltd as trustee for The Vaile Super Fund, acquired 1,000 ord...
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...
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.