How to buy Service Stream shares | A$2.18

Service Stream Limited is an engineering & construction business based in Australia. Service Stream shares (SSM) are listed on the Australian Securities Exchange (ASX) and all prices are listed in Australian Dollars. Its last market close was $2.18 – a decrease of 0.91% over the previous week. Service Stream has a trailing 12-month revenue of around $928.5 million.

How to buy shares in Service Stream

1. Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
3. Search for Service Stream. Find the share by name or ticker symbol: SSM. Research its history to confirm it's a solid investment against your financial goals.
4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Service Stream reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
5. Decide on how many to buy. At today's price of $2.18, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
6. Check in on your investment. Congratulations, you own a part of Service Stream. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

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How has coronavirus impacted Service Stream's share price?

Since the stock market crash in March caused by coronavirus, Service Stream's share price has had significant negative movement.

Its last market close was $2.18, which is 3.96% down on its pre-crash value of $2.27 and 42.02% up on the lowest point reached during the March crash when the shares fell as low as $1.535.

If you had bought $1,000 worth of Service Stream shares at the start of February 2020, those shares would have been worth $588.77 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $789.86.

Service Stream share price

Use our graph to track the performance of SSM stocks over time.

Service Stream shares at a glance

• Key figures

Information last updated 2020-10-20.

Latest market close	AUDA$2.18
52-week range	AUDA$1.535 - AUDA$2.85
50-day moving average	AUDA$1.9901
200-day moving average	AUDA$1.9327
Target price	AUDA$2.12
PE ratio	17.9487
Dividend yield	AUDA$0.09 (4%)
Earnings per share (TTM)	AUDA$0.121

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Service Stream stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of Service Stream Limited by TradingView

Service Stream price performance over time

Historical closes compared with the close of A$2.18 on 2020-10-22

1 week (2020-10-16)	-0.91%
1 month (2020-09-25)	7.92%
3 months (2020-07-23)	20.11%
6 months (2020-04-23)	18.80%

1 year (2019-10-23)	-17.74%
2 years (2018-10-23)	29.76%
3 years (2017-10-23)	58.55%
5 years (2015-10-23)	434.58%

Is Service Stream under- or over-valued?

Valuing Service Stream stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Service Stream's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Service Stream's P/E ratio

Service Stream's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 18x. In other words, Service Stream shares trade at around 18x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Service Stream's EBITDA

Service Stream's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $90.7 million.

The EBITDA is a measure of a Service Stream's overall financial performance and is widely used to measure a its profitability.

Service Stream financials

Revenue TTM	$928.5 million
Operating margin TTM	7.92%
Gross profit TTM	$374.2 million
Return on assets TTM	7.66%
Return on equity TTM	15.67%
Profit margin	5.31%
Book value	0.789
Market capitalisation	$901.5 million

TTM: trailing 12 months

Service Stream share dividends

Dividend payout ratio: 75% of net profits

Recently Service Stream has paid out, on average, around 75% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Service Stream shareholders could enjoy a 4% return on their shares, in the form of dividend payments. In Service Stream's case, that would currently equate to about A$0.09 per share.

Service Stream's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 14 September 2020 (the "ex-dividend date").

Have Service Stream's shares ever split?

Service Stream's shares were split on 1 June 2016. This wouldn't directly have changed the overall worth of your Service Stream shares – just the quantity. However, indirectly, the new INF% higher share price could have impacted the market appetite for Service Stream shares which in turn could have impacted Service Stream's share price.

Service Stream share price volatility

Over the last 12 months, Service Stream's shares have ranged in value from as little as $1.535 up to $2.85. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Service Stream's is 0.8762. This would suggest that Service Stream's shares are less volatile than average (for this exchange).

Service Stream overview

Service Stream Limited accesses, designs, builds, installs, and maintains networks in Australia. It operates through four segments: Fixed Communications, Network Construction, Energy & Water, and Comdain Infrastructure segments. The Fixed Communications segment engages in the provision of a range of operations, maintenance, installation, design, and construction services, including customer connections for owners of fixed-line telecommunication; and service and network assurance; design, construction, and installation of broadband services, as well as projects for asset remediation, augmentation, and relocation. The Network Construction segment offers a range of design, construction, and related services to the owners of fixed-line and wireless telecommunications networks. Its services include site acquisition, engineering, design, and construction of wireless and fixed-line projects. The Energy & Water segment offers a range of specialist metering, new energy, and inspection services to gas, water, and electricity network owners and other customers. Its services meter reading and asset replacement services; engineering, design, and construction services for energy-related products; and specialist inspection, auditing, and compliance services. The Comdain Infrastructure segment offers a range of operations, maintenance, design, and construction services to gas and water network owners and operators. Its services comprise network assurance; asset upgrade and replacement; and engineering, design, and construction services for network assets, as well as specialist electrical and mechanical instrumentation services. The company was incorporated in 1996 and is headquartered in Melbourne, Australia.

Frequently asked questions

• What percentage of Service Stream is owned by insiders or institutions?

  Currently 14.699% of Service Stream shares are held by insiders and 19.963% by institutions.

• When does the fiscal year end for Service Stream?

  Service Stream's fiscal year ends in June.

• Where is Service Stream based?

  Service Stream's address is: 357 Collins Street, Melbourne, VIC, Australia, 3000

• What is Service Stream's ISIN number?

  Service Stream's international securities identification number is: AU000000SSM2