# Service Stream (SSM.AU)

Canonical: https://gigainvestors.com/s/SSM.AU

Analysis as of: 2026-10-16T07:44:22.575Z. Financial observations: FY2001–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 2.14 per share; close as of 2026-10-15.

Estimated value: low AUD 1.44 per share, central AUD 1.83 per share, high AUD 2.13 per share. Buy at or below the central value AUD 1.83 per share. Valuation as of 2026-10-16T07:44:22.575Z; scenarios are not confidence intervals.

Expected annual return: 9.0% at the stated quote. About 9.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.56×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.09×

- FY2019: 0.09×

- FY2020: 0.09×

- FY2021: 0.07×

- FY2022: 0.02×

- FY2023: 0.02×

- FY2024: 0.02×

- FY2025: 0.03×

- FY2026: 0.03×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 17.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 29.2%

- ROIC, second-lowest year: 8.5%

- Typical minus recent gross margin: 17.5 pp

- Typical gross margin (annual median): 25.8%

- Recent gross margin (lower of latest and 3-year median): 8.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.4%

- ROIC including acquisitions, ten-year median: 13.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: >100%

- FY2018: >100%

- FY2019: 74.9%

- FY2020: 53.1%

- FY2021: 33.4%

- FY2022: 8.5%

- FY2023: 8.3%

- FY2024: 15.3%

- FY2025: 25.1%

- FY2026: 19.6%

### economics: pass

- Owner earnings / net income, 5-yr: 2.41×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 281M

- Net income, five-year total: AUD 117M

- Return on incremental invested capital: 863.7%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -8.6 pp

- Working capital / revenue, final three-year average: 9.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: -0.00×

- FY2023: 12.08×

- FY2024: 2.10×

- FY2025: 1.52×

- FY2026: 1.21×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 108.0% vs 19.6%

- Per-share earnings: 0.08 to 0.09 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.3%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: AUD 1.1B

- Cumulative retained earnings: AUD 70M

- Diluted shares, 10-year annual growth: 5.3%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 2.1%

- Per-share value change: AUD 0.01

- Per-share value, starting three-year median: AUD 0.08

- Per-share value, ending three-year median: AUD 0.09

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 1.0%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 618M

- Cumulative net income, 10 years: AUD 314M

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 19.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.08

- FY2018: AUD 0.11

- FY2019: AUD 0.12

- FY2020: AUD 0.12

- FY2021: AUD 0.05

- FY2022: AUD -0.06

- FY2023: AUD 0.01

- FY2024: AUD 0.05

- FY2025: AUD 0.09

- FY2026: AUD 0.09

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 3.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.93×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.74×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.7%

- FY2018: -10.8%

- FY2019: -1.6%

- FY2020: -1.4%

- FY2021: -3.0%

- FY2022: -9.0%

- FY2023: -8.3%

- FY2024: -6.2%

- FY2025: -7.2%

- FY2026: -4.8%

## Holders

## Price story

Price needs cash profits to grow 5.9% a year for ten years · sales +1%

Story as of 2026-10-16T10:00:13.017Z; price observation 2026-10-15.

Price needs cash profits to grow 5.9% a year for ten years

### Sales · FY2025–2026

sales +1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 502M 

- FY2018: AUD 630M 

- FY2019: AUD 851M 

- FY2020: AUD 928M 

- FY2021: AUD 803M 

- FY2022: AUD 1.5B 

- FY2023: AUD 2.0B 

- FY2024: AUD 2.3B 

- FY2025: AUD 2.3B 

- FY2026: AUD 2.4B 

### Gross margin · FY2026

gross margin 8.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 43.8% 

- FY2018: 41.0% 

- FY2019: 39.8% 

- FY2020: 11.7% 

- FY2021: 9.8% 

- FY2022: 3.9% 

- FY2023: 4.7% 

- FY2024: 94.2% 

- FY2025: 95.4% 

- FY2026: 8.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are AUD 2.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2026: revenue 2350235000; grossProfit 193506000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SSM.AU: Service Stream Limited provides design, construction, operations, and maintenance services for infrastructure networks in Australia. The company operates through Telecommunications, Utilities, and Assets and Facilities Management segments. The Telecommunications segment offers operations, maintenance, installation, design, and construction services to the owners of fixed-line and wireless telecommunication networks, as well as customer connections, service and network assurance, site acquisition, engineering, design, construction and installation of broadband, wireless and fixed-line project services, and asset remediation, augmentation and relocation of projects. The Utilities segment provides operations, maintenance, design and construction services to gas, water and electricity network owners, industrial asset owners and other customers; and asset maintenance, upgrades and replacement, engineering, design and construction of network assets, meter reading, network assurance, specialist inspection, auditing, and compliance services. The Assets and Facilities Management offers long-term operations, maintenance, and support services to the lifecycle of critical infrastructure, facilities, and transport assets; integrated facilities management, asset condition assessment, and lifecycle planning; land management and environmental services; road and tunnel network maintenance, and control room operations; and installation and operation of intelligent transport systems. It also provides project management, subcontractor management, minor capital works, community engagement, and customer experience management services. Service Stream Limited was incorporated in 1996 and is headquartered in Melbourne, Australia.

### Why customers stay

Margins ranged from 8.2% to 95.4% during 2024–26; it earns 29.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2024: grossProfit / revenue = 94.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2025: grossProfit / revenue = 95.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2026: grossProfit / revenue = 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); 10-year return on capital observations [[2017,1.0804485818489953],[2018,9.436165716229496],[2019,0.7493053496899849],[2020,0.5314240655598598],[2021,0.333574789215251],[2022,0.08506745096583845],[2023,0.08309865530869641],[2024,0.1525772638516598],[2025,0.25139899216473965],[2026,0.1958398501984286]]; median 0.29248689068999534. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back AUD 13 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2017: growth capex 0; upkeep 1431000; owner earnings 34418000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2018: growth capex 0; upkeep 1574000; owner earnings 48978000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2019: growth capex 0; upkeep 3581000; owner earnings 62363000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2020: growth capex 0; upkeep 7821000; owner earnings 66499200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2021: growth capex 0; upkeep 9894000; owner earnings 41928400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2022: growth capex 0; upkeep 5379000; owner earnings 127000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2023: growth capex 0; upkeep 7984000; owner earnings 53879200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2024: growth capex 0; upkeep 10473000; owner earnings 67781400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2025: growth capex 0; upkeep 13105000; owner earnings 90188600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2026: growth capex 0; upkeep 25087000; owner earnings 68968000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); Dividend observations: [[2017,10950000],[2018,21724000],[2019,29816000],[2020,36303000],[2021,28719000],[2022,294037000],[2023,9236000],[2024,18436000],[2025,30665000],[2026,36883000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); FY2026: cash repurchases 13047000 AUD.

### Are managers owners

Insiders own 6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SSM.AU SharesStats.PercentInsiders = 5.968 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.9% yearly over ten years; actual growth was 5.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:22.575Z); Ten-year compound average after fade. Initial solved rate 0.07148950323483266. Price 2.14; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.06833757780159487 → FY2026 0.11252512595609157. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 1.09 per share

- 2016-11: AUD 0.96 per share

- 2016-12: AUD 1.10 per share

- 2017-01: AUD 1.16 per share

- 2017-02: AUD 1.19 per share

- 2017-03: AUD 1.15 per share

- 2017-04: AUD 1.16 per share

- 2017-05: AUD 1.34 per share

- 2017-06: AUD 1.32 per share

- 2017-07: AUD 1.35 per share

- 2017-08: AUD 1.49 per share

- 2017-09: AUD 1.46 per share

- 2017-10: AUD 1.40 per share

- 2017-11: AUD 1.38 per share

- 2017-12: AUD 1.34 per share

- 2018-01: AUD 1.32 per share

- 2018-02: AUD 1.61 per share

- 2018-03: AUD 1.62 per share

- 2018-04: AUD 1.58 per share

- 2018-05: AUD 1.60 per share

- 2018-06: AUD 1.51 per share

- 2018-07: AUD 1.58 per share

- 2018-08: AUD 1.78 per share

- 2018-09: AUD 1.80 per share

- 2018-10: AUD 1.59 per share

- 2018-11: AUD 1.78 per share

- 2018-12: AUD 1.76 per share

- 2019-01: AUD 1.94 per share

- 2019-02: AUD 2.01 per share

- 2019-03: AUD 2.11 per share

- 2019-04: AUD 2.36 per share

- 2019-05: AUD 2.48 per share

- 2019-06: AUD 2.81 per share

- 2019-07: AUD 2.99 per share

- 2019-08: AUD 2.87 per share

- 2019-09: AUD 2.62 per share

- 2019-10: AUD 2.58 per share

- 2019-11: AUD 2.47 per share

- 2019-12: AUD 2.66 per share

- 2020-01: AUD 2.63 per share

- 2020-02: AUD 2.10 per share

- 2020-03: AUD 1.82 per share

- 2020-04: AUD 1.97 per share

- 2020-05: AUD 2.04 per share

- 2020-06: AUD 1.91 per share

- 2020-07: AUD 1.80 per share

- 2020-08: AUD 1.92 per share

- 2020-09: AUD 2.05 per share

- 2020-10: AUD 2.01 per share

- 2020-11: AUD 2.26 per share

- 2020-12: AUD 1.81 per share

- 2021-01: AUD 1.91 per share

- 2021-02: AUD 1.15 per share

- 2021-03: AUD 1.07 per share

- 2021-04: AUD 1.03 per share

- 2021-05: AUD 0.98 per share

- 2021-06: AUD 0.87 per share

- 2021-07: AUD 0.91 per share

- 2021-08: AUD 0.85 per share

- 2021-09: AUD 0.89 per share

- 2021-10: AUD 0.88 per share

- 2021-11: AUD 0.83 per share

- 2021-12: AUD 0.81 per share

- 2022-01: AUD 0.78 per share

- 2022-02: AUD 0.94 per share

- 2022-03: AUD 1.05 per share

- 2022-04: AUD 0.88 per share

- 2022-05: AUD 0.94 per share

- 2022-06: AUD 0.88 per share

- 2022-07: AUD 1.05 per share

- 2022-08: AUD 0.73 per share

- 2022-09: AUD 0.68 per share

- 2022-10: AUD 0.74 per share

- 2022-11: AUD 0.69 per share

- 2022-12: AUD 0.69 per share

- 2023-01: AUD 0.62 per share

- 2023-02: AUD 0.70 per share

- 2023-03: AUD 0.65 per share

- 2023-04: AUD 0.67 per share

- 2023-05: AUD 0.62 per share

- 2023-06: AUD 0.81 per share

- 2023-07: AUD 0.91 per share

- 2023-08: AUD 0.90 per share

- 2023-09: AUD 0.93 per share

- 2023-10: AUD 0.88 per share

- 2023-11: AUD 0.90 per share

- 2023-12: AUD 0.94 per share

- 2024-01: AUD 0.93 per share

- 2024-02: AUD 1.13 per share

- 2024-03: AUD 1.25 per share

- 2024-04: AUD 1.28 per share

- 2024-05: AUD 1.26 per share

- 2024-06: AUD 1.28 per share

- 2024-07: AUD 1.40 per share

- 2024-08: AUD 1.47 per share

- 2024-09: AUD 1.52 per share

- 2024-10: AUD 1.52 per share

- 2024-11: AUD 1.63 per share

- 2024-12: AUD 1.56 per share

- 2025-01: AUD 1.58 per share

- 2025-02: AUD 1.77 per share

- 2025-03: AUD 1.75 per share

- 2025-04: AUD 1.87 per share

- 2025-05: AUD 1.82 per share

- 2025-06: AUD 1.99 per share

- 2025-07: AUD 1.99 per share

- 2025-08: AUD 2.08 per share

- 2025-09: AUD 2.31 per share

- 2025-10: AUD 2.27 per share

- 2025-11: AUD 2.25 per share

- 2025-12: AUD 2.24 per share

- 2026-01: AUD 2.28 per share

- 2026-02: AUD 2.08 per share

- 2026-03: AUD 1.93 per share

- 2026-04: AUD 1.95 per share

- 2026-05: AUD 2.37 per share

- 2026-06: AUD 2.65 per share

- 2026-07: AUD 2.44 per share

- 2026-08: AUD 2.42 per share

- 2026-09: AUD 2.39 per share

- 2026-10: AUD 2.21 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 0.76 per share, central AUD 1.04 per share, high AUD 1.20 per share

- FY2018: low AUD 1.49 per share, central AUD 2.01 per share, high AUD 2.33 per share

- FY2019: low AUD 1.87 per share, central AUD 2.36 per share, high AUD 2.73 per share

- FY2020: low AUD 1.90 per share, central AUD 2.14 per share, high AUD 2.46 per share

- FY2021: low AUD 1.14 per share, central AUD 1.29 per share, high AUD 1.49 per share

- FY2022: low AUD 1.99 per share, central AUD 2.25 per share, high AUD 2.61 per share

- FY2023: low AUD 1.97 per share, central AUD 2.23 per share, high AUD 2.58 per share

- FY2024: low AUD 1.21 per share, central AUD 1.37 per share, high AUD 1.59 per share

- FY2025: low AUD 1.20 per share, central AUD 1.36 per share, high AUD 1.58 per share

- FY2026: low AUD 1.44 per share, central AUD 1.83 per share, high AUD 2.13 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:50:04.652Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.