SERVICE STREAM LIMITED (SSM)
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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

$1.57

24 Dec
2024

0.015

OPEN

$1.54

0.96%

HIGH

$1.59

265,395

LOW

$1.54

TARGET
$1.603 2.1% upside
Franking for last dividend paid out: 100%
OTHER COMPANIES IN THE SAME SECTOR
3DA . ALQ . AVD . BSA . CG1 . CLG . CVL . CWY . CXL . DOW . DUR . EGL . EGN . EVS . FLC . IPG . LBL . MAD . PPK . RWL . 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 16.5 xxx
Dividend Yield xxx N/A 3.5% xxx
Div Pay Ratio(%) xxx 85.7% 57.9% xxx

Dividend yield today if purchased 3 years ago: 5.70%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 2.87

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: 19/09 - ex-div 1c (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

0.5

No. Of Recommendations

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

Ord Minnett

xx/xx/xxxx

2

xxxxxxxxx xx xxxxxxxxxx xxxx xxx

$xx.xx

xx.xx%

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

Citi

24/10/2024

1

Buy

$1.70

8.28%

Service Stream's 1Q trading update displayed a continuation of the momentum Citi observed in FY24 with earnings growth most likely within management's 5-10% year-on-year targeted range.

Management noted the quality of earnings had improved in the quarter. The broker suspects this better quality stems from improvement in Utilities, due to a full 12 months of positive uplift from legacy agreements that were either re-negotiated or exited.

The analysts also attribute this quality to an optimisation of delivery and the cost base.

The Buy rating and $1.70 target are 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.

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
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

06/12/2024

1

Buy

$1.68

7.01%

Service Stream has secured a new ten-year contract with Urban Utilities estimated initially at up to $0.5bn over the period, while also securing extensions to agreements with NBN Co that have an estimated value of $325m over their initial terms.

Canaccord Genuity expects the new agreement will help support current margin improvement within the Utilities division.

The broker notes Service Stream has extended its New Development Module contract out by three years providing greater work-in-hand certainty, and sees the company as well placed with the current NBN Field Services Contract tender.

Buy and $1.68 target retained.

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
Australian Broker Call *Extra* Edition – Dec 09, 2024

Dec 09 2024 - Daily Market Reports
2
Weekly Ratings, Targets, Forecast Changes – 06-12-24

Dec 09 2024 - Weekly Reports
3
A Golden Era For Engineering Services?

Oct 30 2024 - Feature Stories
4
Rudi’s View: August Results Fail To Inspire

Sep 05 2024 - Rudi's View
5
Australian Broker Call *Extra* Edition – Aug 27, 2024

Aug 27 2024 - Daily Market Reports

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