Service Stream (ASX:SSM) ROCE %: 12.10% (As of Dec. 2025)


ASX:SSM Service Stream Ltd ASX:SSM
79 GF Score
Price A$2.68
GF Value A$1.48
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Service Stream ROCE %?

Service Stream ASX:SSM +1.52% 79 ROCE % is 12.10% as of Dec. 2025. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Service Stream's annualized ROCE % for the quarter that ended in Dec. 2025 was 12.10%.

Service Stream  (ASX:SSM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Service Stream ROCE % Related Terms

Service Stream ROCE % Historical Data

* Premium members only.

The historical data trend for Service Stream's ROCE % 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.

Service Stream ROCE % Chart

Service Stream Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.81 -5.14 2.62 8.46 13.00

Service Stream Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.11 10.06 14.04 12.24 12.10
ASX:SSM
79GF Score
Service Stream Ltd ASX:SSM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Service Stream ROCE % Calculation

Service Stream's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=85.263/( ( (1048.639 - 381.168) + (1045.946 - 401.512) )/ 2 )
=85.263/( (667.471+644.434)/ 2 )
=85.263/655.9525
=13.00 %

Service Stream's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=79.046/( ( (1045.946 - 401.512) + (1020.59 - 358.316) )/ 2 )
=79.046/( ( 644.434 + 662.274 )/ 2 )
=79.046/653.354
=12.10 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 12.10% mean?
Service Stream (ASX:SSM) has a ROCE % of 12.10% as of Dec. 2025.
Is Service Stream's ROCE % too high?
Service Stream's current ROCE % is 12.10%. The Construction industry median ROCE % is 8.22. Service Stream's value of 12.10% is 47.2% above this industry median. 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 ROCE % compare to PWR and FIX?
Service Stream's ROCE % of 12.10% can be compared against companies in the Construction industry. The industry median ROCE % is 8.22. Service Stream's value of 12.10% is 47.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Construction company?
The median ROCE % among Construction companies is 8.22, based on 1,754 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Stream's current ROCE % of 12.10% is 47.2% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Construction industry, the median ROCE % is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Stream's current ROCE % is 12.10%. 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 ROCE % is 12.10% and 47.2% above the Construction industry median of 8.22. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Service Stream (ASX:SSM), the current ROCE % is 12.10% 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:

  • ROCE %: 12.10%
  • GF Value™: A$1.48 vs. price of A$2.68 (81.1% above fair value)
  • GF Score™: 79/100 with 6 warning signs
  • Industry Position: 47.2% above the Construction median

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 Business Description

Other Exchanges UFY:Germany
Address 655 Collins Street, Level 5, Docklands, VIC, AUS, 3008
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

Get the complete analysis for ASX:SSM

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$2.68
Price
A$1.48
GF Value