Service Stream Limited engages in the access, design, build, installation, and maintenance of networks in Australia.
Service Stream Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$0.86|
|52 Week High||AU$0.73|
|52 Week Low||AU$2.47|
|1 Month Change||-0.58%|
|3 Month Change||-1.15%|
|1 Year Change||-58.05%|
|3 Year Change||-52.09%|
|5 Year Change||-27.43%|
|Change since IPO||-28.44%|
Recent News & Updates
Service Stream Limited (ASX:SSM) Shares Could Be 49% Below Their Intrinsic Value Estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Service Stream Limited...
|SSM||AU Construction||AU Market|
Return vs Industry: SSM underperformed the Australian Construction industry which returned 2% over the past year.
Return vs Market: SSM underperformed the Australian Market which returned 24.8% over the past year.
Stable Share Price: SSM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: SSM's weekly volatility (5%) has been stable over the past year.
About the Company
Service Stream Limited engages in the access, design, build, installation, and maintenance of networks in Australia. It operates in two segments, Telecommunications and Utilities. The Telecommunications segment provides various operations, maintenance, installation, design, and construction services to owners of fixed-line and wireless telecommunication, including customer connections; service and network assurance; site acquisition; and design, construction, and installation of broadband, wireless, and fixed-line project services, as well as projects for asset remediation, augmentation, and relocation.
Service Stream Fundamentals Summary
|SSM fundamental statistics|
Is SSM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SSM income statement (TTM)|
|Cost of Revenue||AU$460.78m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.053|
|Net Profit Margin||3.65%|
How did SSM perform over the long term?See historical performance and comparison
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$0.86) is trading below our estimate of fair value (A$3.54)
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 (16.3x) compared to the Australian Construction industry average (14.8x).
PE vs Market: SSM is good value based on its PE Ratio (16.3x) compared to the Australian market (19x).
Price to Earnings Growth Ratio
PEG Ratio: SSM is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: SSM is good value based on its PB Ratio (1.5x) compared to the AU Construction industry average (2x).
How is Service Stream forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SSM's forecast earnings growth (19.3% per year) is above the savings rate (1.9%).
Earnings vs Market: SSM's earnings (19.3% per year) are forecast to grow faster than the Australian market (11.4% per year).
High Growth Earnings: SSM's earnings are forecast to grow, but not significantly.
Revenue vs Market: SSM's revenue (25.3% per year) is forecast to grow faster than the Australian market (5.2% per year).
High Growth Revenue: SSM's revenue (25.3% per year) is forecast to grow faster 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 (10.8%).
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 (3.6%) are lower than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: SSM's earnings have grown by 10.7% 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 (-40.6%) over the past year, making it difficult to compare to the Construction industry average (25%).
Return on Equity
High ROE: SSM's Return on Equity (9.1%) is considered low.
How is Service Stream's financial position?
Financial Position Analysis
Short Term Liabilities: SSM's short term assets (A$197.5M) exceed its short term liabilities (A$142.2M).
Long Term Liabilities: SSM's short term assets (A$197.5M) exceed its long term liabilities (A$81.9M).
Debt to Equity History and Analysis
Debt Level: SSM's debt to equity ratio (10.4%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if SSM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SSM's debt is well covered by operating cash flow (134.8%).
Interest Coverage: SSM's interest payments on its debt are well covered by EBIT (20.3x coverage).
What is Service Stream current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SSM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SSM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SSM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SSM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SSM is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SSM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Leigh Mackender, BEng (Civil) (Syd) has been Managing Director of Service Stream Limited since May 26, 2014 and serves as its Executive Director. He served as its Executive General Manager of AMRS from...
CEO Compensation Analysis
Compensation vs Market: Leigh's total compensation ($USD776.15K) is about average for companies of similar size in the Australian market ($USD754.90K).
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 (2.6 years average tenure).
Experienced Board: SSM's board of directors are considered experienced (6.5 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 35.8%.
Service Stream Limited's 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$455.245m
- Shares outstanding: 555.18m
- Website: https://www.servicestream.com.au
Number of Employees
- Service Stream Limited
- 357 Collins Street
- Level 4
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/28 08:06|
|End of Day Share Price||2021/09/28 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.