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Service Stream Limited
(Sydney:SSM)
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Rating:64Neutral
Price Target:
AU$3.00
â–²(50.75% 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
Revenue and earnings recovery
The recovery shows improved execution and a stronger earnings base after the 2022 loss. Continued operations across essential infrastructure markets provide a platform for durable revenue, although future growth is currently moderating.
Negative Factors
Low and volatile margins
Thin and inconsistent margins leave limited room to absorb wage, subcontractor or project-cost pressures. Volatility also makes earnings less predictable and suggests that durable profitability depends heavily on execution and contract mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings recovery
The recovery shows improved execution and a stronger earnings base after the 2022 loss. Continued operations across essential infrastructure markets provide a platform for durable revenue, although future growth is currently moderating.
Read all positive factors
Service Stream Limited (SSM) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.48B
Dividend Yield2.46%
Average Volume (3M)1.78M
Price to Earnings (P/E)25.9
Beta (1Y)0.40
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. Volume1,447,063
30 Day Avg. Volume1,784,489
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$2.92Price Target Upside46.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.13
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
Neutral
1.99
Price Trends
2.51
Negative
2.38
Positive
2.24
Positive
Market Momentum
-0.03
Positive
39.90
Neutral
15.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SSM, the sentiment is Neutral. The current price of 1.99 is below the 20-day moving average (MA) of 2.49, below the 50-day MA of 2.51, and below the 200-day MA of 2.24, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 15.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$2.85B | 22.36 | 22.77% | 3.80% | 29.43% | 50.05% | |
70 Outperform | AU$2.43B | 33.10 | 15.84% | 1.83% | 26.61% | 44.44% | |
67 Neutral | AU$3.51B | 22.47 | 23.03% | 2.43% | 31.39% | 451.49% | |
64 Neutral | AU$1.48B | 25.89 | 10.95% | 2.46% | 1.02% | -4.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.19B | 19.30 | 11.01% | 4.58% | -7.37% | 59.81% | |
54 Neutral | AU$1.99B | 14.86 | 14.45% | 1.26% | 34.24% | 1.87% |
* Industrials Sector Average
AU:SSM
Service Stream Limited
2.40
0.51
27.32%
AU:DOW
Downer EDI Limited
6.37
-0.30
-4.44%
AU:MND
Monadelphous Group Limited
28.40
8.08
39.78%
AU:NWH
NRW Holdings Limited
7.64
3.40
80.15%
AU:SRG
SRG Global Limited
3.83
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100.21%
AU:MGH
MAAS Group Holdings Ltd.
5.50
1.07
24.21%
Service Stream Limited Corporate Events
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...
State Street Group Ceases to Be Substantial Holder in Service Stream
Jun 4, 2026
State Street Corporation, through several global asset management and trust subsidiaries, has lodged a notice that it has ceased to be a substantial holder in Service Stream Limited as of 2 June 2026. The filing, made under section 671B of the Cor...
Dimensional Entities Steps Back From Major Holding in Service Stream
May 27, 2026
Dimensional Entities has lodged a notice that it has ceased to be a substantial shareholder in Service Stream Limited as of 8 May 2026. The change reflects a reduction in Dimensional’s relevant voting interest below the substantial holding t...
Service Stream to Acquire High-Voltage Specialist RIE Group in Expansion Push
May 25, 2026
Service Stream Limited has agreed to acquire Queensland-based RIE Group, a specialised high-voltage electrical and instrumentation business serving the oil and gas, power generation and renewable energy sectors across the Surat Basin, Darling Down...
State Street Entities Cease to Be Substantial Holders in Service Stream
May 22, 2026
Service Stream Limited has disclosed that entities associated with State Street Corporation have ceased to be substantial shareholders in the company as of 20 May 2026. The change reflects a reduction in State Street’s relevant interest and ...
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.