Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Service Stream Limited (SSM.AX)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$2.69 - $5.64$3.80
Multi-Stage$2.07 - $2.25$2.16
Blended Fair Value$2.98
Current Price$1.99
Upside49.77%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-3.32%31.89%0.050.030.010.000.050.060.050.030.020.01
YoY Growth--66.33%99.61%0.00%-100.00%-20.89%21.76%37.25%98.39%41.88%300.73%
Dividend Yield--2.45%2.34%1.81%0.00%5.33%3.07%1.72%2.32%1.34%1.59%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)91.48
(-) Cash Dividends Paid (M)49.10
(=) Cash Retained (M)42.38
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.3011.446.86
Cash Retained (M)42.3842.3842.38
(-) Cash Required (M)-18.30-11.44-6.86
(=) Excess Retained (M)24.0830.9535.52
(/) Shares Outstanding (M)629.67629.67629.67
(=) Excess Retained per Share0.040.050.06
LTM Dividend per Share0.080.080.08
(+) Excess Retained per Share0.040.050.06
(=) Adjusted Dividend0.120.130.13
WACC / Discount Rate10.06%10.06%10.06%
Growth Rate5.50%6.50%7.50%
Fair Value$2.69$3.80$5.64
Upside / Downside35.14%91.12%183.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)91.4897.43103.76110.51117.69125.34129.10
Payout Ratio53.67%60.94%68.20%75.47%82.73%90.00%92.50%
Projected Dividends (M)49.1059.3770.7783.4097.37112.80119.42

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.06%10.06%10.06%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)53.4453.9454.45
Year 2 PV (M)57.3358.4259.53
Year 3 PV (M)60.8162.5664.33
Year 4 PV (M)63.9066.3668.89
Year 5 PV (M)66.6369.8573.19
PV of Terminal Value (M)999.201,047.461,097.57
Equity Value (M)1,301.311,358.601,417.96
Shares Outstanding (M)629.67629.67629.67
Fair Value$2.07$2.16$2.25
Upside / Downside3.85%8.42%13.16%

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