Service StreamASX:SSM -0.39%80 Return-on-Tangible-Asset is 8.43% as of Dec. 2025, which is 29% below its 10-year median of 11.93. GuruFocus rates ASX:SSM with a GF Score™ of 80/100 and a GF Value™ of A$1.48 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,777 Construction companies, Service Stream ranks better than 80.3% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Service Stream's annualizedNet Income for the quarter that ended in Dec. 2025 was A$54 Mil. Service Stream's average total tangible assets for the quarter that ended in Dec. 2025 was A$636 Mil. Therefore, Service Stream's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 8.43%.
The historical rank and industry rank for Service Stream's Return-on-Tangible-Asset or its related term are showing as below:
ASX:SSM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -8.66 Med: 11.93 Max: 20.77
Current: 8.38
During the past 13 years, Service Stream's highest Return-on-Tangible-Asset was 20.77%. The lowest was -8.66%. And the median was 11.93%.
ASX:SSM's Return-on-Tangible-Asset is ranked better than 80.3% of 1777
companies
in the Construction industry
Industry Median: 3
vs ASX:SSM: 8.38
Service Stream (ASX:SSM) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Service Stream Return-on-Tangible-Asset Related Terms
Service Stream Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Service Stream's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, Service Stream's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Service Stream's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Service Stream's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 8.43% mean?
Service Stream (ASX:SSM) has a Return-on-Tangible-Asset of 8.43% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Service Stream and its competitors. This is 29% below median its historical median of 11.93. According to the industry distribution chart, Service Stream ranks #350 out of 1777 companies in the Construction industry, placing it in the top 19.7%.
Is Service Stream's Return-on-Tangible-Asset too high?
Service Stream's current Return-on-Tangible-Asset of 8.43% is 29% below median its 10-year median of 11.93. The Construction industry median Return-on-Tangible-Asset is 3.00. Service Stream's value of 8.43% is 181% above this industry median. Based on the distribution chart, Service Stream ranks #350 out of 1777 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 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Service Stream's Return-on-Tangible-Asset compare to PWR and FIX?
According to the Construction industry distribution chart, Service Stream ranks #350 out of 1777 companies for Return-on-Tangible-Asset. This places Service Stream in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.00. Service Stream's value of 8.43% is 181% above this benchmark. While the company's 10-year median is 11.93 vs. the industry median of 3.00, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.00, based on 1,777 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Stream's current Return-on-Tangible-Asset of 8.43% is 181% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Service Stream and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Stream's current Return-on-Tangible-Asset is 8.43%, which is 29% below median its own 10-year median of 11.93. 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$2.58 — trading 74.3% above its estimated fair value. The current Return-on-Tangible-Asset is 8.43%, which is 29% below median its 10-year median of 11.93 and 181% above the Construction industry median of 3.00. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Service Stream (ASX:SSM), the current Return-on-Tangible-Asset is 8.43% 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$2.58 is trading 74.3% above its estimated GF Value™ of A$1.48.
GuruFocus considers Service Stream to be Significantly Overvalued.
Key valuation signals for ASX:SSM:
Return-on-Tangible-Asset: 8.43% (29% below median its 10-year median of 11.93)
GF Value™: A$1.48 vs. price of A$2.58 (74.3% above fair value)
Industry Position: 181% above the Construction median (#350 of 1777)
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.
80GF Score
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