Service StreamASX:SSM -0.75%80 Return-on-Tangible-Equity is 45.27% as of Dec. 2025, which is 33% below its 10-year median of 68.03. 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 1,705 Construction companies, Service Stream ranks better than 89.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Service Stream's annualized net income for the quarter that ended in Dec. 2025 was A$54 Mil. Service Stream's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$118 Mil. Therefore, Service Stream's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 45.27%.
The historical rank and industry rank for Service Stream's Return-on-Tangible-Equity or its related term are showing as below:
ASX:SSM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -220.46 Med: 68.03 Max: 232.31
Current: 49.21
During the past 13 years, Service Stream's highest Return-on-Tangible-Equity was 232.31%. The lowest was -220.46%. And the median was 68.03%.
ASX:SSM's Return-on-Tangible-Equity is ranked better than 89.27% of 1705
companies
in the Construction industry
Industry Median: 8.25
vs ASX:SSM: 49.21
Service Stream (ASX:SSM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Service Stream Return-on-Tangible-Equity Related Terms
Service Stream Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Service Stream's Return-on-Tangible-Equity 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-Equity Comparison
For the Engineering & Construction subindustry, Service Stream's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Construction Industry
For the Construction industry and Industrials sector, Service Stream's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Service Stream's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 45.27% mean?
Service Stream (ASX:SSM) has a Return-on-Tangible-Equity of 45.27% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Service Stream and its competitors. This is 33% below median its historical median of 68.03. According to the industry distribution chart, Service Stream ranks #183 out of 1705 companies in the Construction industry, placing it in the top 10.7%.
Is Service Stream's Return-on-Tangible-Equity too high?
Service Stream's current Return-on-Tangible-Equity of 45.27% is 33% below median its 10-year median of 68.03. The Construction industry median Return-on-Tangible-Equity is 8.25. Service Stream's value of 45.27% is 448.7% above this industry median. Based on the distribution chart, Service Stream ranks #183 out of 1705 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-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Service Stream ranks #183 out of 1705 companies for Return-on-Tangible-Equity. This places Service Stream in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.25. Service Stream's value of 45.27% is 448.7% above this benchmark. While the company's 10-year median is 68.03 vs. the industry median of 8.25, 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.25, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Stream's current Return-on-Tangible-Equity of 45.27% is 448.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Service Stream and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Stream's current Return-on-Tangible-Equity is 45.27%, which is 33% below median its own 10-year median of 68.03. 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$2.65 — trading 79.1% above its estimated fair value. The current Return-on-Tangible-Equity is 45.27%, which is 33% below median its 10-year median of 68.03 and 448.7% above the Construction industry median of 8.25. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Service Stream (ASX:SSM), the current Return-on-Tangible-Equity is 45.27% 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$2.65 is trading 79.1% 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-Equity: 45.27% (33% below median its 10-year median of 68.03)
GF Value™: A$1.48 vs. price of A$2.65 (79.1% above fair value)
Industry Position: 448.7% above the Construction median (#183 of 1705)
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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