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Southern Cross Electrical Engineering Limited (SXE) Fair Value & Analysis

Industrials · AU · Market cap A$1.3B

SC Southern Cross Electrical Engineering Limited SXE · AU
PriceA$4.49
Fair ValueA$2.19
Upside-51.2%
Quality72/100
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Healthy Growth
Thin margins · 0.4% net margin
Low debt · generates free cash flow
1.60% dividend yield
Trails peers (4/15)
Narrow moat 39/100
Evidence: High Range A$1.64 – A$2.74 Share as image

Fair value as of: Jul 17, 2026

From 24 valuation models · updated 23 days ago

Fair value updated Jul 17, 2026, revised from A$2.50 to A$2.19 (−12.4%) since Jun 24, 2026. Share price +6.1% over the past month.

A solid business, but screening 51% overvalued on our models.

What matters now

  • A high-quality business (quality 72/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (A$2.74). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

A$4.86 A$0.3781 Fair Value A$2.19 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range A$0.3781 – A$4.86 · fair‑value band A$1.64 – A$2.74 · the A$4.49 price screens above the A$2.19 fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Southern Cross Electrical Engineering Limited (SXE) currently trades at A$4.49, while our model-based Fair Value estimate is A$2.19, implying the stock looks roughly 51.2% overvalued today. The Quality Score stands at 72/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Southern Cross Electrical Engineering Limited generated revenue of A$753M at a net margin of 0.4%. Revenue declined 12.2% year over year. It earns a return on equity of 1.4%. The balance sheet holds a net cash position of A$80.4M. Fundamentals as of Jul 17, 2026

Our scenario range runs from A$1.64 (bear case) to A$2.74 (bull case); at A$4.49, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 188% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -51%, SXE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF A$2.42 A$3.83 A$5.93 80
Residual Income A$0.6400 A$0.8000 A$1.77 76
Rev-Margin DCF A$1.91 A$3.01 A$4.48 74
All 24 models by family
DCF Models
FCF DCF A$2.47 A$4.13 A$6.79 38
Owner Earnings A$1.59 A$2.58 A$4.16 31
5Y Revenue Exit A$1.91 A$3.03 A$4.53 39
5Y EBITDA Exit A$2.08 A$3.39 A$5.04 41
5Y P/E Exit A$2.05 A$3.31 A$4.77 38
10Y Revenue Exit A$2.06 A$3.15 A$4.83 36
10Y EBITDA Exit A$2.20 A$3.40 A$5.23 37
10Y P/E Exit A$2.18 A$3.34 A$5.02 35
Earnings-Based
Graham-Dodd A$0.7100 A$3.70 A$5.12 54
Lynch FV A$1.01 A$1.45 A$1.88 50
PEG = 1.0 A$1.01 A$1.45 A$1.88 46
EPV A$1.09 A$1.20 A$1.29 59
Multiples
P/E Multiple A$1.64 A$2.19 A$2.74 63
P/S Multiple A$1.33 A$1.77 A$2.22 58
P/B Multiple A$1.33 A$1.77 A$2.22 55
EV/EBIT A$2.15 A$2.76 A$3.38 53
EV/EBITDA A$2.00 A$2.57 A$3.13 54
EV/Revenue A$1.61 A$2.18 A$2.75 43
Asset-Based
NCAV (Graham) A$0.3400 A$0.4500 A$0.6700 50
Growth DCF
Growth DCF A$2.42 A$3.83 A$5.93 80
Rev-Margin DCF A$1.91 A$3.01 A$4.48 74
Economic Profit
Residual Income A$0.6400 A$0.8000 A$1.77 76
ROIC Compounder A$1.19 A$1.44 A$1.75 72
Growth Earnings
Growth-Adj P/E A$1.51 A$2.16 A$2.81 68

Widest divergence: DCF Models (A$3.31) versus Asset-Based (A$0.4500). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$753M
Revenue growth (YoY) -12.2%
Net margin 0.4%
Return on equity 1.4%
Free cash flow A$59.8M FY2025
P/E ratio 417.0
More key figures
Operating margin 8.3%
EPS (TTM) A$0.0100
Dividend yield 1.8%
EPS growth (YoY) +28.3%
Net cash A$80.4M FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 72 · Market factors (momentum, volatility) 81

Profitability 57
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 89
Price trend over the last 3–12 months (market factor)
52W Momentum 93
Distance to the 52-week high (market factor)
Net Issuance 76
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Southern Cross Electrical Engineering Limited, together with its subsidiaries, provides electrical, instrumentation, communications, security, fire, and maintenance services and products in Australia. It operates through SCEE Electrical, Heyday, Trivantage, and Force Fire segments.

Full company description

Southern Cross Electrical Engineering Limited, together with its subsidiaries, provides electrical, instrumentation, communications, security, fire, and maintenance services and products in Australia. It operates through SCEE Electrical, Heyday, Trivantage, and Force Fire segments. The company installs electrical and data communications cabling products and systems; designs, manufactures, and installs commercial and industrial switchboards; and provides security system solutions, including consultation, design, supply, installation, integration, preventative maintenance, access control, workforce access management, intruder detection, perimeter solutions and gates, nurse call and duress systems, and CCTV servicing, as well as designs, installs, inspects, tests, and maintains fire protection systems. It also provides electrical infrastructure, building controls, energy management systems, lighting, security, communications, networking, maintenance, and structured cabling systems; solutions for LNG upstream and downstream facilities, and petrochemical refineries; and construction and maintenance services for private and publicly funded infrastructure assets. In addition, the company engages in the decarbonization projects, such as solar farms, wind farms, lithium and copper, recycling plants, power, and building design optimization. The company operates under the SCEE Electrical, Datatel, Heyday, MDE, SJ Electrical, Trivantage Manufacturing, Seme Solutions, and Force Fire brands. It serves commercial, resources, infrastructure, and decarbonization markets. The company was founded in 1978 and is headquartered in Perth, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Southern Cross Electrical Engineering Limited reported revenue of A$801M in FY2025 versus A$370M in FY2021, a compound +21.3%/yr. Reported net income was A$31.7M in FY2025, compounding +23.2%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$801M
Latest YoY
+45.2%
Avg. growth/yr (3Y)
+13.1%
Avg. growth/yr (5Y)
+14.1%
Avg. growth/yr (20Y)
+15.6%
Revenue +21.3%/yr
FY21 A$370M
FY22 A$553M
FY23 A$465M
FY24 A$552M
FY25 A$801M
Net income +23.2%/yr
FY21 A$13.8M
FY22 A$15.3M
FY23 A$20.1M
FY24 A$21.9M
FY25 A$31.7M

SXE screens 51% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Southern Cross Electrical Engineering Limited Fair Value". https://www.fairvalue-calculator.com/stock/SXE

Peer Group

Engineering & Construction · 837 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 72 · Top 25%
Fair Value upside −51% · Below median
Return on equity (TTM) 1% · Below median
Return on assets 9% · Top 25%
Net margin (TTM) 0% · Below median
Operating margin (TTM) 8% · Above median
Revenue growth -12% · Below median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 435.0× · Pricier than 75% of peers
P/B 4.56× · Pricier than 75% of peers
P/S (TTM) 1.24× · Pricier than median
P/FCF 15.6× · Pricier than 75% of peers
EV/EBITDA 14.3× · Pricier than median
PEG 3.01× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 16
FUTURE 0 · sector 18
PAST 6 · sector 26
HEALTH 100 · sector 94
DIVIDEND 32 · sector 33

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Southern Cross Electrical Engineering Limited (SXE) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of A$2.19 versus a price of A$4.49, about −51% (overvalued).
What is the fair value of SXE?
Our model-based fair value for Southern Cross Electrical Engineering Limited is A$2.19 (as of Jul 17, 2026), built from audited fundamentals. The current price is A$4.49.
What is the quality score of SXE?
Southern Cross Electrical Engineering Limited has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Southern Cross Electrical Engineering Limited (SXE)?
Southern Cross Electrical Engineering Limited reported trailing-twelve-month revenue of about A$753M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of SXE?
The net profit margin of Southern Cross Electrical Engineering Limited is about 0.4%, meaning it keeps roughly 0.4% of revenue as net income. Based on the latest reported figures.
Does Southern Cross Electrical Engineering Limited pay a dividend?
Southern Cross Electrical Engineering Limited currently shows a dividend yield of about 1.76% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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