Service Stream Limited accesses, designs, builds, installs, and maintains networks in Australia. More Details
Undervalued with excellent balance sheet and pays a dividend.
Share Price & News
How has Service Stream's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SSM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: SSM's weekly volatility (9%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SSM underperformed the Australian Construction industry which returned -11% over the past year.
Return vs Market: SSM underperformed the Australian Market which returned 37.1% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Service Stream's share price compared to the market and industry in the last 5 years?
Simply Wall St News
12 hours ago | Simply Wall StWhat Kind Of Investors Own Most Of Service Stream Limited (ASX:SSM)?
2 weeks ago | Simply Wall StService Stream (ASX:SSM) Has Compensated Shareholders With A Respectable 93% Return On Their Investment
4 weeks ago | Simply Wall StDoes Service Stream (ASX:SSM) Have A Healthy Balance Sheet?
Is Service Stream undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SSM (A$1.06) is trading below our estimate of fair value (A$1.59)
Significantly Below Fair Value: SSM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SSM is good value based on its PE Ratio (11.3x) compared to the AU Construction industry average (18.3x).
PE vs Market: SSM is good value based on its PE Ratio (11.3x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: SSM is poor value based on its PEG Ratio (11.5x)
Price to Book Ratio
PB vs Industry: SSM is good value based on its PB Ratio (1.4x) compared to the AU Construction industry average (2.2x).
How is Service Stream forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SSM's forecast earnings growth (1% per year) is below the savings rate (2%).
Earnings vs Market: SSM's earnings (1% per year) are forecast to grow slower than the Australian market (15.3% per year).
High Growth Earnings: SSM's earnings are forecast to grow, but not significantly.
Revenue vs Market: SSM's revenue (3.3% per year) is forecast to grow slower than the Australian market (5.7% per year).
High Growth Revenue: SSM's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SSM's Return on Equity is forecast to be low in 3 years time (11.1%).
How has Service Stream performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SSM has high quality earnings.
Growing Profit Margin: SSM's current net profit margins (4.6%) are lower than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: SSM's earnings have grown by 18.9% per year over the past 5 years.
Accelerating Growth: SSM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SSM had negative earnings growth (-27.9%) over the past year, making it difficult to compare to the Construction industry average (4.3%).
Return on Equity
High ROE: SSM's Return on Equity (11.9%) is considered low.
How is Service Stream's financial position?
Financial Position Analysis
Short Term Liabilities: SSM's short term assets (A$189.1M) exceed its short term liabilities (A$131.2M).
Long Term Liabilities: SSM's short term assets (A$189.1M) exceed its long term liabilities (A$91.7M).
Debt to Equity History and Analysis
Debt Level: SSM's debt to equity ratio (12%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if SSM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SSM's debt is well covered by operating cash flow (175.6%).
Interest Coverage: SSM's interest payments on its debt are well covered by EBIT (30.5x coverage).
What is Service Stream current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SSM's dividend (7.08%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: SSM's dividend (7.08%) is in the top 25% of dividend payers in the Australian market (5.31%)
Stability and Growth of Payments
Stable Dividend: SSM has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SSM's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (80.1%), SSM's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SSM's dividends in 3 years are forecast to be covered by earnings (52.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Leigh Mackender, BEng (Civil) (Syd) has been Managing Director of Service Stream Limited since May 26, 2014 and serves as its Executive Director. He served as its Executive General Manager of AMRS from...
CEO Compensation Analysis
Compensation vs Market: Leigh's total compensation ($USD1.23M) is above average for companies of similar size in the Australian market ($USD690.63K).
Compensation vs Earnings: Leigh's compensation has been consistent with company performance over the past year.
Experienced Management: SSM's management team is considered experienced (2.8 years average tenure).
Experienced Board: SSM's board of directors are considered experienced (6.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SSM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Service Stream Limited's company bio, employee growth, exchange listings and data sources
- Name: Service Stream Limited
- Ticker: SSM
- Exchange: ASX
- Founded: 1996
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: AU$434.347m
- Shares outstanding: 409.76m
- Website: https://www.servicestream.com.au
Number of Employees
- Service Stream Limited
- 357 Collins Street
- Level 4
Service Stream Limited accesses, designs, builds, installs, and maintains networks in Australia. It operates through four segments: Fixed Communications, Network Construction, Energy & Water, and Comdain I...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/13 08:12|
|End of Day Share Price||2021/04/13 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.