Service Stream Limited

ASX:SSM Stock Report

Market Cap: AU$1.0b

Service Stream Valuation

Is SSM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SSM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SSM (A$1.64) is trading below our estimate of fair value (A$3.79)

Significantly Below Fair Value: SSM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SSM?

Key metric: As SSM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SSM. This is calculated by dividing SSM's market cap by their current earnings.
What is SSM's PE Ratio?
PE Ratio31.1x
EarningsAU$32.30m
Market CapAU$1.00b

Price to Earnings Ratio vs Peers

How does SSM's PE Ratio compare to its peers?

The above table shows the PE ratio for SSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
JLG Johns Lyng Group
25x11.9%AU$1.2b
MGH MAAS Group Holdings
20.9x17.5%AU$1.5b
SRG SRG Global
23.1x15.3%AU$806.2m
TEA Tasmea
20.3x21.8%AU$585.7m
SSM Service Stream
31.1x15.4%AU$1.0b

Price-To-Earnings vs Peers: SSM is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does SSM's PE Ratio compare vs other companies in the AU Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
SSM 31.1xIndustry Avg. 15.0xNo. of Companies3PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SSM is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the Global Construction industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is SSM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SSM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.1x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: SSM is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SSM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.64
AU$1.65
+0.7%
6.7%AU$1.75AU$1.41n/a6
Nov ’25AU$1.55
AU$1.65
+6.6%
6.7%AU$1.75AU$1.41n/a6
Oct ’25AU$1.52
AU$1.61
+5.7%
6.5%AU$1.70AU$1.41n/a5
Sep ’25AU$1.47
AU$1.61
+9.6%
6.5%AU$1.70AU$1.41n/a5
Aug ’25AU$1.40
AU$1.37
-1.5%
8.8%AU$1.55AU$1.20n/a5
Jul ’25AU$1.25
AU$1.30
+4.7%
7.5%AU$1.45AU$1.20n/a5
Jun ’25AU$1.26
AU$1.26
+0.6%
7.6%AU$1.45AU$1.20n/a5
May ’25AU$1.25
AU$1.26
+1.0%
7.6%AU$1.45AU$1.20n/a5
Apr ’25AU$1.25
AU$1.26
+1.0%
7.6%AU$1.45AU$1.20n/a5
Mar ’25AU$1.16
AU$1.26
+9.3%
7.6%AU$1.45AU$1.20n/a5
Feb ’25AU$0.91
AU$1.10
+21.5%
12.4%AU$1.35AU$0.91n/a6
Jan ’25AU$0.94
AU$1.10
+17.0%
12.4%AU$1.35AU$0.91n/a6
Dec ’24AU$0.90
AU$1.09
+21.4%
12.8%AU$1.35AU$0.91n/a6
Nov ’24AU$0.87
AU$1.09
+25.3%
13.8%AU$1.35AU$0.91AU$1.555
Oct ’24AU$0.93
AU$1.07
+15.5%
16.7%AU$1.35AU$0.80AU$1.525
Sep ’24AU$0.91
AU$1.04
+14.9%
17.3%AU$1.35AU$0.80AU$1.476
Aug ’24AU$0.90
AU$0.96
+7.6%
17.4%AU$1.24AU$0.69AU$1.406
Jul ’24AU$0.81
AU$0.90
+11.3%
18.7%AU$1.24AU$0.69AU$1.256
Jun ’24AU$0.63
AU$0.89
+41.3%
17.5%AU$1.20AU$0.69AU$1.266
May ’24AU$0.68
AU$0.89
+30.9%
17.5%AU$1.20AU$0.69AU$1.256
Apr ’24AU$0.65
AU$0.89
+37.5%
18.0%AU$1.20AU$0.67AU$1.256
Mar ’24AU$0.71
AU$0.89
+24.9%
18.0%AU$1.20AU$0.67AU$1.166
Feb ’24AU$0.62
AU$0.90
+45.5%
21.0%AU$1.14AU$0.66AU$0.915
Jan ’24AU$0.69
AU$0.91
+33.4%
20.6%AU$1.14AU$0.66AU$0.945
Dec ’23AU$0.69
AU$0.95
+38.3%
15.4%AU$1.14AU$0.75AU$0.905
Nov ’23AU$0.76
AU$1.01
+33.1%
11.7%AU$1.14AU$0.86AU$0.874

Analyst Forecast: Target price is less than 20% higher than the current share price.

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