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Service Stream Limited
(Sydney:SSM)
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Rating:64Neutral
Price Target:
AU$2.50
â–²(25.63% Upside)
Action:Downgraded
Date:08/20/26
The score is driven primarily by improved financial stability and a credible earnings recovery, supported by generally positive (but recently softer) cash generation. Technicals add modest support with price above major moving averages, while a relatively high P/E and only moderate dividend yield temper the overall rating.
Positive Factors
Essential infrastructure exposure
Exposure to essential infrastructure supports a durable service model because customers require construction, maintenance, assurance, and asset-management work to keep critical networks operating. Coverage across several infrastructure sectors also provides multiple avenues for contracted activity over the medium term.
Negative Factors
Low and volatile margins
Low net margins leave limited room for cost overruns, weaker activity, or execution issues to be absorbed without affecting earnings. Significant gross-margin swings also make profitability less predictable, reducing confidence that the recent earnings recovery will translate into consistently strong returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential infrastructure exposure
Exposure to essential infrastructure supports a durable service model because customers require construction, maintenance, assurance, and asset-management work to keep critical networks operating. Coverage across several infrastructure sectors also provides multiple avenues for contracted activity over the medium term.
Read all positive factors
Service Stream Limited (SSM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.34B
Dividend Yield3%
Average Volume (3M)2.58M
Price to Earnings (P/E)23.5
Beta (1Y)0.34
Revenue Growth1.02%
EPS Growth-4.14%
CountryAU
Employees6,500
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding618,405,400
10 Day Avg. Volume2,294,472
30 Day Avg. Volume2,578,346
Financial Highlights & Ratios
PEG Ratio-7.08
Price to Book (P/B)3.12
Price to Sales (P/S)0.69
P/FCF Ratio19.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.90Price Target Upside45.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.14
Revenue Forecast (FY)AU$2.70B
Service Stream Limited Business Overview & Revenue Model
Company Description
Service Stream Limited engages in the design, construction, operation, and maintenance of infrastructure networks across the telecommunications, utilities, and transport sectors in Australia. It operates through Telecommunications, Utilities, and ...
How the Company Makes Money
Service Stream makes money primarily by providing contracted services to owners and operators of essential infrastructure (e.g., telecommunications carriers and utilities). Revenue is generated through a mix of project-based work (design/build/upg...
Service Stream Limited Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.35B | 2.33B | 2.29B | 2.05B | 1.51B |
| Gross Profit | 193.51M | 2.22B | 2.16B | 96.14M | 59.26M |
| EBITDA | 65.69M | 144.81M | 116.03M | 100.53M | 24.31M |
| Net Income | 56.94M | 59.18M | 32.30M | 4.46M | -36.32M |
Balance Sheet | |||||
| Total Assets | 1.11B | 1.05B | 1.05B | 1.09B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 80.67M | 73.55M | 62.95M | 84.27M | 68.68M |
| Total Debt | 110.15M | 77.19M | 117.02M | 171.86M | 206.37M |
| Total Liabilities | 587.60M | 533.37M | 568.27M | 625.75M | 581.56M |
| Stockholders Equity | 521.64M | 512.57M | 480.29M | 465.36M | 468.10M |
Cash Flow | |||||
| Free Cash Flow | 84.90M | 121.89M | 86.71M | 86.83M | 53.17M |
| Operating Cash Flow | 109.99M | 134.99M | 97.19M | 94.81M | 58.55M |
| Investing Cash Flow | -22.63M | -7.45M | -6.38M | -16.91M | -317.74M |
| Financing Cash Flow | -80.24M | -116.94M | -112.12M | -62.31M | 277.30M |
Service Stream Limited Technical Analysis
Negative
1.99
Price Trends
2.37
Negative
2.43
Negative
2.24
Negative
Market Momentum
-0.06
Negative
39.28
Neutral
65.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SSM, the sentiment is Negative. The current price of 1.99 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.37, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 65.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SSM.
Service Stream Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$2.80B | 22.06 | 22.77% | 3.88% | 29.43% | 50.05% | |
70 Outperform | AU$2.14B | 29.17 | 15.84% | 2.07% | 26.61% | 44.44% | |
67 Neutral | AU$2.76B | 17.81 | 23.03% | 3.85% | 31.39% | 451.49% | |
64 Neutral | AU$1.34B | 23.52 | 10.95% | 3.00% | 1.02% | -4.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.55B | 21.17 | 11.01% | 4.18% | -7.37% | 59.81% | |
52 Neutral | AU$1.21B | 10.54 | 14.45% | 1.87% | 34.24% | 1.87% |
* Industrials Sector Average
AU:SSM
Service Stream Limited
2.17
-0.03
-1.45%
AU:DOW
Downer EDI Limited
6.99
-0.42
-5.73%
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27.82
5.82
26.48%
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5.98
1.30
27.83%
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SRG Global Limited
3.38
0.51
17.89%
AU:MGH
MAAS Group Holdings Ltd.
3.71
-0.85
-18.69%
Service Stream Limited Corporate Events
Service Stream shareholders back all resolutions at 2026 AGM
Oct 21, 2026
Service Stream Limited has reported the voting outcomes of its 2026 Annual General Meeting held on 21 October, with all resolutions passed comfortably by shareholders. The AGM outcomes, including detailed poll results, will be available for viewin...
Service Stream posts record profit as defence push and diversification drive ASX200 rise
Oct 20, 2026
Service Stream reported a record profit in FY26, exceeded expectations and maintained a company-high $8.2 billion work-in-hand, plus $6.2 billion in extension options, giving strong visibility over future revenue. Its recent inclusion in the ASX20...
Service Stream MD Sells Shares After Incentive Vesting, Remains Major Holder
Sep 29, 2026
Service Stream Limited has disclosed changes to Managing Director Leigh Mackender’s shareholding following the full vesting of the company’s FY24 long-term incentive scheme. Under the plan, Mackender received 916,342 performance rights...
State Street Group Ceases to Be Substantial Holder in Service Stream
Sep 17, 2026
Service Stream Limited has disclosed that State Street Corporation and several of its subsidiaries have ceased to be substantial holders in the company as of 15 September 2026. The notice, lodged under section 671B of the Corporations Act 2001, de...
Service Stream Director Boosts Stake Through Incentive Share Vesting
Sep 16, 2026
Service Stream Limited has disclosed a significant increase in the shareholding of director Leigh Geoffrey Mackender following the vesting of performance rights under the company’s FY24 long-term incentive plan and FY25 short-term incentive ...
State Street exits substantial holder position in Service Stream
Sep 14, 2026
State Street Corporation, through its asset management subsidiaries including State Street Global Advisors entities, has lodged a notice that it has ceased to be a substantial shareholder in Service Stream Limited as of 10 September 2026. The chan...
State Street Group Ceases to Be Substantial Holder in Service Stream
Sep 10, 2026
State Street Global Advisors and related State Street Corporation subsidiaries have notified Service Stream Limited that they have ceased to be substantial holders in the company as of 8 September 2026, in line with Australian Corporations Act dis...
Service Stream Wins $144m Victorian Transport Network Contracts
Aug 20, 2026
Service Stream Limited has secured two Intelligent Transport Systems maintenance contracts with Transport for Victoria, covering the Victoria West ITS Maintenance Contract and the Motorway Communications Network Contract, with an initial combined ...
State Street Group Ceases to Be Substantial Holder in Service Stream
Aug 19, 2026
Global institutional investor State Street Corporation, through several asset management subsidiaries, has filed a notice stating it has ceased to be a substantial holder in Service Stream Limited as of 17 August 2026. The filing, made under Austr...
Service Stream Declares Interim Dividend of 3.5 Cents per Share
Aug 18, 2026
Service Stream Limited, an ASX-listed provider of network and asset services to utilities and telecommunications sectors, trades under the code SSM with ordinary fully paid shares. The company focuses on long-term contracts that support essential ...
Service Stream boosts FY26 earnings, cash and contract pipeline
Aug 18, 2026
Service Stream Limited reported strong full-year FY26 results, highlighting improved earnings quality and robust cash generation. EBITDA from operations rose 11.8% to $163.4 million, NPAT-A climbed 18.4% to $81.1 million, and cash conversion reach...
Service Stream Bolsters Energy Capabilities with RiE Group Acquisition
Jul 31, 2026
Service Stream Limited has completed the acquisition of RiE Group Pty Ltd, a specialised high-voltage electrical and instrumentation business servicing the oil and gas, power generation and renewable energy sectors. The deal follows the successful...
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.