SERVICE STREAM LIMITED (SSM)
Share Price Analysis and Chart

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SSM - SERVICE STREAM LIMITED

FNArena Sector : Industrial Sector Contractors & Engineers
Year End: June
GICS Industry Group : Capital Goods
Debt/EBITDA: 1.06
Index: ASX300 | ALL-ORDS

Service Stream is an Australian provider of services to the telecommunication and utilities industries. Services include design and construction of networks, renewable energy infrastructure and environmental services for utilities. It listed in 2004.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$1.42

12 Sep
2024

0.010

OPEN

$1.42

0.71%

HIGH

$1.43

819,126

LOW

$1.41

TARGET
$1.583 11.5% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
ALQ . AVD . BSA . CG1 . CLG . CVL . CWY . CXL . DOW . DUR . EGN . EVS . FLC . IPG . LBL . MAD . PPK . SDV . SHA . SND . VEE . VNT .
FNARENA'S MARKET CONSENSUS FORECASTS
SSM: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 5.3 9.5 xxx
DPS (cps) xxx 4.5 5.5 xxx
EPS Growth xxx 100.0% 81.0% xxx
DPS Growth xxx 100.0% 22.2% xxx
PE Ratio xxx N/A 15.5 xxx
Dividend Yield xxx N/A 3.7% xxx
Div Pay Ratio(%) xxx 85.7% 57.9% xxx

Dividend yield today if purchased 3 years ago: 5.36%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 3.06

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 21/03 - ex-div 2c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx5.3
DPS All xxxxxxxxxxxxxxx4.5
Sales/Revenue xxxxxxxxxxxxxxx2,288.8 M
Book Value Per Share xxxxxxxxxxxxxxx78.4
Net Operating Cash Flow xxxxxxxxxxxxxxx97.2 M
Net Profit Margin xxxxxxxxxxxxxxx1.41 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx6.83 %
Return on Invested Capital xxxxxxxxxxxxxxx5.41 %
Return on Assets xxxxxxxxxxxxxxx3.02 %
Return on Equity xxxxxxxxxxxxxxx6.83 %
Return on Total Capital xxxxxxxxxxxxxxx8.45 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx70.2 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx21 M
Long Term Debt xxxxxxxxxxxxxxx96 M
Total Debt xxxxxxxxxxxxxxx117 M
Goodwill - Gross xxxxxxxxxxxxxxx299 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx63 M
Price To Book Value xxxxxxxxxxxxxxx1.63

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx10.5 M
Capex % of Sales xxxxxxxxxxxxxxx0.46 %
Cost of Goods Sold xxxxxxxxxxxxxxx2,131 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx106 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx10 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.7

No. Of Recommendations

3
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Macquarie

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Citi

22/08/2024

1

Buy

$1.70

19.72%

There is no shortage of positives from Service Stream's result, Citi suggests, including solid cash conversion, utilities margin improvement, second half telco performance, maintaining a net cash position, and work-in-hand uplift.

A string of new contract awards and a 97% contract retention rate provide stability over the next couple of years, Citi notes. Growing optimism around the near to medium term outlook is exemplified in the board’s decision to declare dividend well ahead of expectations.

A net cash balance and cash conversion exceeding 100% demonstrate that Service Stream has certainly turned a corner since the start
of FY24, the broker believes. Target rises to $1.70 from $1.55, Buy retained.

FORECAST
Citi forecasts a full year FY25 dividend of 5.20 cents and EPS of 9.30 cents.
Citi forecasts a full year FY26 dividend of 5.60 cents and EPS of 10.00 cents.

Ord Minnett

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial
Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Canaccord Genuity

26/08/2024

1

Buy

$1.68

18.31%

Service Stream delivered FY24 results that were ahead of Canaccord Genuity's estimates. The broker notes the "robust" balance sheet, with net debt reduced to a net cash position of $7.9m.

Momentum is expected to continue into FY25, supported by an improved utility division. The broker considers the results high-quality and retains a Buy rating, raising the target to $1.68 from $1.45.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 5.00 cents and EPS of 10.00 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 7.00 cents and EPS of 11.00 cents.
Access Extra Coverage Research History >

SSM STOCK CHART

FNArena News on SSM

1
Rudi’s View: August Results Fail To Inspire

Sep 05 2024 - Rudi's View
2
Australian Broker Call *Extra* Edition – Aug 27, 2024

Aug 27 2024 - Daily Market Reports
3
FNArena Corporate Results Monitor – 22-08-2024

Aug 22 2024 - Australia
4
Weekly Ratings, Targets, Forecast Changes – 14-06-24

Jun 17 2024 - Weekly Reports
5
Australian Broker Call *Extra* Edition – Jun 11, 2024

Jun 11 2024 - Daily Market Reports

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