Service Stream Limited accesses, designs, builds, installs, and maintains networks in Australia.
Excellent balance sheet average dividend payer.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SSM exceeded the Australian Construction industry which returned -32% over the past year.
Return vs Market: SSM underperformed the Australian Market which returned 15.3% over the past year.
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
1 day ago | Simply Wall StHave Insiders Been Selling Service Stream Limited (ASX:SSM) Shares?
1 week ago | Simply Wall StService Stream Limited Just Released Its Half-Year Earnings: Here's What Analysts Think
1 week ago | Simply Wall StIs There More To The Story Than Service Stream's (ASX:SSM) Earnings Growth?
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$2.32) is trading below our estimate of fair value (A$4.57)
Significantly Below Fair Value: SSM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SSM is poor value based on its PE Ratio (17.6x) compared to the Construction industry average (15.4x).
PE vs Market: SSM is good value based on its PE Ratio (17.6x) compared to the Australian market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: SSM is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: SSM is overvalued based on its PB Ratio (3x) compared to the AU Construction industry average (1.7x).
How is Service Stream forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SSM's forecast earnings growth (5.6% per year) is above the savings rate (1.1%).
Earnings vs Market: SSM's earnings (5.6% per year) are forecast to grow slower than the Australian market (9.4% per year).
High Growth Earnings: SSM's earnings are forecast to grow, but not significantly.
Revenue vs Market: SSM's revenue (3.6% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: SSM's revenue (3.6% 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 (18.6%).
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 (5.3%) are lower than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: SSM's earnings have grown significantly by 32% per year over the past 5 years.
Accelerating Growth: SSM's earnings growth over the past year (17.1%) is below its 5-year average (32% per year).
Earnings vs Industry: SSM earnings growth over the past year (17.1%) underperformed the Construction industry 17.1%.
Return on Equity
High ROE: SSM's Return on Equity (16.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Service Stream's financial position?
Financial Position Analysis
Short Term Liabilities: SSM's short term assets (A$239.9M) exceed its short term liabilities (A$177.1M).
Long Term Liabilities: SSM's short term assets (A$239.9M) exceed its long term liabilities (A$113.3M).
Debt to Equity History and Analysis
Debt Level: SSM's debt to equity ratio (19.1%) is considered satisfactory.
Reducing Debt: SSM's debt to equity ratio has increased from 10.9% to 19.1% over the past 5 years.
Debt Coverage: SSM's debt is well covered by operating cash flow (86.4%).
Interest Coverage: SSM's interest payments on its debt are well covered by EBIT (34x coverage).
Inventory Level: SSM has a low level of unsold assets or inventory.
Debt Coverage by Assets: SSM's debt is covered by short term assets (assets are 4x debt).
What is Service Stream's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Service Stream before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SSM's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: SSM's dividend (4.09%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).
Stability and Growth of Payments
Stable Dividend: SSM's dividend payments have been volatile in the past 10 years.
Growing Dividend: SSM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (72.2%), SSM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SSM's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Leigh MacKender 0
Mr. Leigh Mackender, BEng (Civil) (Syd) has been Managing Director of Service Stream Limited since May 26, 2014 and served as its Executive General Manager of AMRS from March 21, 2011 to May 2014. Mr. Mack ...
CEO Compensation Analysis
Compensation vs Market: Leigh's total compensation ($USD1.41M) is above average for companies of similar size in the Australian market ($USD948.27K).
Compensation vs Earnings: Leigh's compensation has been consistent with company performance over the past year.
|MD & Director||5.8yrs||AU$2.11m||0.26% A$2.4m|
|Chief Financial Officer||9.7yrs||AU$1.59m||0.25% A$2.3m|
|Founder of Total Communications Infrastructure Ltd||0yrs||no data||no data|
|Chief Information Officer||1.7yrs||no data||no data|
|Company Secretary & General Counsel||4.5yrs||no data||no data|
|Company Secretary||7.5yrs||no data||no data|
Experienced Management: SSM's management team is seasoned and experienced (5.8 years average tenure).
|MD & Director||5.8yrs||AU$2.11m||0.26% A$2.4m|
|Non Executive Independent Director||9.4yrs||AU$125.00k||0.11% A$999.2k|
|Lead Independent Director||0yrs||AU$118.00k||0.26% A$2.4m|
|Chairman of the Board||4.9yrs||AU$160.00k||0.81% A$7.7m|
|Non-Executive Director||3.7yrs||AU$118.00k||0.012% A$116.0k|
|Non-Executive Director||1yrs||AU$49.17k||no data|
Experienced Board: SSM's board of directors are considered experienced (4.3 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 been diluted in the past year, with total shares outstanding growing by 11.5%.
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$945.360m
- Shares outstanding: 407.48m
- Website: https://www.servicestream.com.au
Number of Employees
- Service Stream Limited
- 357 Collins Street
- Level 4
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SSM||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Dec 2004|
|SSM||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Dec 2004|
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 Infrastructure segments. The Fixed Communications segment engages in the provision of a range of operations, maintenance, installation, design, and construction services, including customer connections for owners of fixed-line telecommunication; service and network assurance; design, construction, and installation of broadband services, as well as projects for asset remediation, augmentation, and relocation. The Network Construction segment offers a range of design, construction, and related services to the owners of fixed-line and wireless telecommunications networks. Its services include site acquisition, engineering, design, and construction of wireless and fixed-line projects. The Energy & Water segment offers a range of specialist metering, new energy, and inspection services to gas, water, and electricity network owners and other customers. Its services meter reading and asset replacement services; engineering, design, and construction services for energy-related products; and specialist inspection, auditing, and compliance services. The Comdain Infrastructure segment offers a range of operations, maintenance, design, and construction services to gas and water network owners and operators. Its services comprise network assurance; asset upgrades and replacement; engineering, design, and construction of network assets, as well as specialist electrical and mechanical instrumentation services. The company was incorporated in 1996 and is headquartered in Melbourne, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 10:32|
|End of Day Share Price||2020/02/19 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.