Service Stream Limited
Service Stream Limited Fundamental Analysis
Service Stream Limited (SSM.AX) shows weak financial fundamentals with a PE ratio of 26.75, profit margin of 2.35%, and ROE of 10.26%. The company generates $2.3B in annual revenue with weak year-over-year growth of 1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SSM.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSSM.AX struggles to generate sufficient returns from assets.
Valuation Score
WeakSSM.AX trades at a premium to fair value.
Growth Score
ModerateSSM.AX shows steady but slowing expansion.
Financial Health Score
ExcellentSSM.AX maintains a strong and stable balance sheet.
Profitability Score
WeakSSM.AX struggles to sustain strong margins.
Key Financial Metrics
Is SSM.AX Expensive or Cheap?
P/E Ratio
SSM.AX trades at 26.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SSM.AX's PEG of 14.14 indicates potential overvaluation.
Price to Book
The market values Service Stream Limited at 2.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.64 times EBITDA. This signals the market has high growth expectations.
How Well Does SSM.AX Make Money?
Net Profit Margin
For every $100 in sales, Service Stream Limited keeps $2.35 as profit after all expenses.
Operating Margin
Core operations generate 2.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.26 in profit for every $100 of shareholder equity.
ROA
Service Stream Limited generates $5.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Service Stream Limited generates limited operating cash flow of $115.80M, signaling weaker underlying cash strength.
Free Cash Flow
Service Stream Limited produces free cash flow of $101.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
SSM.AX converts 7.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SSM.AX Stacks Against Its Sector Peers
| Metric | SSM.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.75 | 26.08 | Neutral |
| ROE | 10.26% | 1275.00% | Weak |
| Net Margin | 2.35% | -33581.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 10.40 | Neutral |
| ROA | 5.18% | -1488149.00% (disorted) | Weak |
SSM.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Service Stream Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
143.98%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
16.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
127.75%
Industry Style: Cyclical, Value, Infrastructure
High Growth