Service StreamASX:SSM +1.52%79 Gross Margin % is 95.19% as of Dec. 2025, which is 0% above its 10-year median of 94.82. GuruFocus rates ASX:SSM with a GF Score™ of 79/100 and a GF Value™ of A$1.48 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,724 Construction companies, Service Stream ranks better than 99.07% on this metric.
The historical rank and industry rank for Service Stream's Gross Margin % or its related term are showing as below:
ASX:SSM'
s Gross Margin % Range Over the Past 10 Years
Min: 92.23 Med: 94.82 Max: 98.23
Current: 95.36
During the past 13 years, the highestGross Margin % of Service Stream was 98.23%. The lowest was 92.23%. And the median was 94.82%.
ASX:SSM's Gross Margin % is ranked better than 99.07% of 1724
companies
in the Construction industry
Industry Median: 20.705
vs ASX:SSM: 95.36
Service Stream had a gross margin of 95.19% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Service Stream was 0.20% per year.
Service Stream (ASX:SSM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Service Stream had a gross margin of 95.19% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Service Stream Gross Margin % Related Terms
Service Stream Gross Margin % Historical Data
* Premium members only.
The historical data trend for Service Stream's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:SSM vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Service Stream's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Service Stream Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Service Stream's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Service Stream's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Service Stream (ASX:SSM) has a Gross Margin % of 95.19% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Service Stream and its competitors. This is near median its historical median of 94.82. Over the past decade, Service Stream's Gross Margin % has ranged from 92.23 to 98.23. According to the industry distribution chart, Service Stream ranks #16 out of 1724 companies in the Construction industry, placing it in the top 0.90000000000001%.
Is Service Stream's Gross Margin % too high?
Service Stream's current Gross Margin % of 95.19% is near median its 10-year median of 94.82. Over the past 10 years, this metric has ranged from a low of 92.23 to a high of 98.23. The Construction industry median Gross Margin % is 20.71. Service Stream's value of 95.19% is 359.7% above this industry median. Based on the distribution chart, Service Stream ranks #16 out of 1724 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Service Stream has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Service Stream's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Service Stream ranks #16 out of 1724 companies for Gross Margin %. This places Service Stream in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Service Stream's value of 95.19% is 359.7% above this benchmark. Historically, Service Stream's own Gross Margin % has ranged from 92.23 to 98.23 over the past decade. While the company's 10-year median is 94.82 vs. the industry median of 20.71, Service Stream has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Stream's current Gross Margin % of 95.19% is 359.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Service Stream and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Stream's current Gross Margin % is 95.19%, which is near median its own 10-year median of 94.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Service Stream stock overvalued right now?
Based on GuruFocus' analysis, Service Stream (ASX:SSM) is currently considered Significantly Overvalued. The stock's GF Value™ is A$1.48, compared to a current price of A$2.68 — trading 81.1% above its estimated fair value. The current Gross Margin % is 95.19%, which is near median its 10-year median of 94.82 and 359.7% above the Construction industry median of 20.71. Service Stream's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Service Stream (ASX:SSM), the current Gross Margin % is 95.19% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Service Stream (ASX:SSM) Overvalued in 2026?
Based on GuruFocus' analysis, Service Stream stock appears to be overvalued.
The current stock price of A$2.68 is trading 81.1% above its estimated GF Value™ of A$1.48.
GuruFocus considers Service Stream to be Significantly Overvalued.
Key valuation signals for ASX:SSM:
Gross Margin %: 95.19% (near median its 10-year median of 94.82)
GF Value™: A$1.48 vs. price of A$2.68 (81.1% above fair value)
Industry Position: 359.7% above the Construction median (#16 of 1724)
No single metric tells the full story. See the ASX:SSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Service Stream Ltd is engaged in the provision of telecommunications and network services. Its segments are Telecommunications, Transport, and Utilities. The Telecommunications segment provides a range of operations, maintenance, installation, design, and construction services to the owners of fixed-line and wireless telecommunication networks in Australia. Transport provides long-term operational support and maintenance services to public and private road and tunnel asset owners. The utilities segment provides operations, maintenance, design, and construction services, specialist metering, new energy, and inspection services to gas, water, and electricity network owners, among others. It generates revenue from the Telecommunications segment.
79GF Score
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