Service StreamASX:SSM 80 Pretax Margin % is 3.21% as of Dec. 2025, which is 45% below its 10-year median of 5.86. GuruFocus rates ASX:SSM with a GF Score™ of 80/100 and a GF Value™ of A$1.49 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,761 Construction companies, Service Stream ranks worse than 61.22% on this metric.
The historical rank and industry rank for Service Stream's Pretax Margin % or its related term are showing as below:
ASX:SSM'
s Pretax Margin % Range Over the Past 10 Years
Min: -2.25 Med: 5.86 Max: 9.26
Current: 3.26
ASX:SSM's Pretax Margin % is ranked worse than 61.22% of 1761
companies
in the Construction industry
Industry Median: 5.47
vs ASX:SSM: 3.26
Service Stream (ASX:SSM) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Service Stream Pretax Margin % Related Terms
Service Stream Pretax Margin % Historical Data
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The historical data trend for Service Stream's Pretax 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: Pretax Margin % Comparison
For the Engineering & Construction subindustry, Service Stream's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Construction Industry
For the Construction industry and Industrials sector, Service Stream's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Service Stream's Pretax 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.
Service Stream (ASX:SSM) has a Pretax Margin % of 3.21% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Service Stream and its competitors. This is 45% below median its historical median of 5.86. According to the industry distribution chart, Service Stream ranks #1078 out of 1761 companies in the Construction industry, placing it in the top 61.2%.
Is Service Stream's Pretax Margin % too high?
Service Stream's current Pretax Margin % of 3.21% is 45% below median its 10-year median of 5.86. The Construction industry median Pretax Margin % is 5.47. Service Stream's value of 3.21% is 41.3% below this industry median. Based on the distribution chart, Service Stream ranks #1078 out of 1761 companies in the Construction industry, which is below the industry midpoint. Overall, Service Stream has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Service Stream's Pretax Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Service Stream ranks #1078 out of 1761 companies for Pretax Margin %. This places Service Stream in the lower half of its industry. The industry median Pretax Margin % is 5.47. Service Stream's value of 3.21% is 41.3% below this benchmark. While the company's 10-year median is 5.86 vs. the industry median of 5.47, Service Stream has consistently been below 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 Pretax Margin % for a Construction company?
The median Pretax Margin % among Construction companies is 5.47, based on 1,761 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Stream's current Pretax Margin % of 3.21% is 41.3% below 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Service Stream and its competitors. For the Construction industry, the median Pretax Margin % is 5.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Stream's current Pretax Margin % is 3.21%, which is 45% below median its own 10-year median of 5.86. 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$1.49, compared to a current price of A$2.51 — trading 68.5% above its estimated fair value. The current Pretax Margin % is 3.21%, which is 45% below median its 10-year median of 5.86 and 41.3% below the Construction industry median of 5.47. Service Stream's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Service Stream (ASX:SSM), the current Pretax Margin % is 3.21% 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$2.51 is trading 68.5% above its estimated GF Value™ of A$1.49.
GuruFocus considers Service Stream to be Significantly Overvalued.
Key valuation signals for ASX:SSM:
Pretax Margin %: 3.21% (45% below median its 10-year median of 5.86)
GF Value™: A$1.49 vs. price of A$2.51 (68.5% above fair value)
Industry Position: 41.3% below the Construction median (#1078 of 1761)
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.
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