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Serco Group

DB:SEO
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SEO
DB
£1B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. The last earnings update was 21 days ago. More info.


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SEO Share Price and Events
7 Day Returns
1.2%
DB:SEO
0.1%
DE Commercial Services
0.8%
DE Market
1 Year Returns
31.8%
DB:SEO
-6.3%
DE Commercial Services
-4.5%
DE Market
SEO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Serco Group (SEO) 1.2% -3.5% 12.8% 31.8% 15.3% -67%
DE Commercial Services 0.1% 3.3% 10.1% -6.3% 3.5% -41.2%
DE Market 0.8% 6.9% 8.1% -4.5% 10.4% 13.9%
1 Year Return vs Industry and Market
  • SEO outperformed the Commercial Services industry which returned -6.3% over the past year.
  • SEO outperformed the Market in Germany which returned -4.5% over the past year.
Price Volatility
SEO
Industry
5yr Volatility vs Market

SEO Value

 Is Serco Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Serco Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Serco Group.

DB:SEO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SEO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 19%) (18.47%))
0.896
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.896 * 6.65%)
6.19%

Discounted Cash Flow Calculation for DB:SEO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Serco Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:SEO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.19%)
2019 26.10 Analyst x2 24.58
2020 66.63 Analyst x5 59.09
2021 89.53 Analyst x3 74.78
2022 107.99 Est @ 20.61% 84.93
2023 123.64 Est @ 14.5% 91.58
2024 136.28 Est @ 10.22% 95.06
2025 146.12 Est @ 7.22% 95.98
2026 153.60 Est @ 5.12% 95.02
2027 159.21 Est @ 3.65% 92.75
2028 163.39 Est @ 2.63% 89.64
Present value of next 10 years cash flows £803.41
DB:SEO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £163.39 × (1 + 0.23%) ÷ (6.19% – 0.23%)
£2,748.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £2,748.12 ÷ (1 + 6.19%)10
£1,507.69
DB:SEO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £803.41 + £1,507.69
£2,311.10
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,311.10 / 1,108.63
£2.08
DB:SEO Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:SEO represents 1.14252x of LSE:SRP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.14252x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 2.08 x 1.14252
€2.38
Value per share (EUR) From above. €2.38
Current discount Discount to share price of €1.42
= -1 x (€1.42 - €2.38) / €2.38
40.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Serco Group is available for.
Intrinsic value
40%
Share price is €1.42 vs Future cash flow value of €2.38
Current Discount Checks
For Serco Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Serco Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Serco Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Serco Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Serco Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SEO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.06
LSE:SRP Share Price ** LSE (2019-04-25) in GBP £1.24
Europe Commercial Services Industry PE Ratio Median Figure of 105 Publicly-Listed Commercial Services Companies 17.06x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Serco Group.

DB:SEO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SRP Share Price ÷ EPS (both in GBP)

= 1.24 ÷ 0.06

20.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Serco Group is overvalued based on earnings compared to the Europe Commercial Services industry average.
  • Serco Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Serco Group's expected growth come at a high price?
Raw Data
DB:SEO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
13.2%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 53 Publicly-Listed Commercial Services Companies 1.4x
Germany Market PEG Ratio Median Figure of 268 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

DB:SEO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.17x ÷ 13.2%

1.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Serco Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Serco Group's assets?
Raw Data
DB:SEO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.35
LSE:SRP Share Price * LSE (2019-04-25) in GBP £1.24
Germany Commercial Services Industry PB Ratio Median Figure of 8 Publicly-Listed Commercial Services Companies 2.03x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:SEO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SRP Share Price ÷ Book Value per Share (both in GBP)

= 1.24 ÷ 0.35

3.53x

* Primary Listing of Serco Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Serco Group is overvalued based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess Serco Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Serco Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SEO Future Performance

 How is Serco Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Serco Group expected to grow at an attractive rate?
  • Serco Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Serco Group's earnings growth is expected to exceed the Germany market average.
  • Serco Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SEO Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SEO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 13.2%
DB:SEO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 4.3%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 31.4%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SEO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SEO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,501 2
2022-12-31 3,382 2
2021-12-31 3,245 130 99 7
2020-12-31 3,106 121 78 9
2019-12-31 2,968 79 52 9
DB:SEO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 2,837 3 67
2018-09-30 2,823 -11 46
2018-06-30 2,813 -20 34
2018-03-31 2,883 -18 17
2017-12-31 2,951 -20 -8
2017-09-30 2,989 -34 -29
2017-06-30 3,025 -49 -57
2017-03-31 3,018 -56 -20
2016-12-31 3,011 -62 17
2016-09-30 3,034 -24 5
2016-06-30 3,058 14 -7
2016-03-31 3,117 -3 -47

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Serco Group's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
  • Serco Group's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SEO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Serco Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SEO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.09 0.10 0.08 4.00
2020-12-31 0.07 0.08 0.06 6.00
2019-12-31 0.05 0.06 0.04 6.00
DB:SEO Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.06
2018-09-30 0.04
2018-06-30 0.03
2018-03-31 0.02
2017-12-31 -0.01
2017-09-30 -0.03
2017-06-30 -0.05
2017-03-31 -0.02
2016-12-31 0.02
2016-09-30 0.00
2016-06-30 -0.01
2016-03-31 -0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Serco Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Serco Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Serco Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SEO Past Performance

  How has Serco Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Serco Group's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Serco Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Serco Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Serco Group has become profitable in the last year making it difficult to compare the Europe Commercial Services industry average.
Earnings and Revenue History
Serco Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Serco Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SEO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,836.80 67.40 201.50
2018-09-30 2,823.30 46.45 201.80
2018-06-30 2,812.50 33.60 202.10
2018-03-31 2,883.05 16.70 210.25
2017-12-31 2,950.90 -8.30 218.40
2017-09-30 2,988.90 -29.05 219.55
2017-06-30 3,025.10 -56.90 220.70
2017-03-31 3,018.05 -20.05 216.10
2016-12-31 3,011.00 16.80 211.50
2016-09-30 3,034.25 4.95 211.95
2016-06-30 3,057.50 -6.90 212.40
2016-03-31 3,117.25 -46.65 230.75
2015-12-31 3,177.00 -86.40 249.10
2015-06-30 3,182.10 -1,023.80 561.70
2015-03-31 3,388.90 -1,006.75 565.80
2014-12-31 3,595.70 -989.70 569.90
2014-09-30 4,080.40 -654.35 425.20
2014-06-30 4,197.20 23.20 265.70
2014-03-31 4,240.70 60.80 274.20
2013-12-31 4,284.20 98.40 282.70
2013-09-30 4,278.00 162.40 266.60
2013-06-30 4,267.90 229.40 248.40
2013-03-31 4,164.00 234.90 245.60
2012-12-31 4,060.10 240.40 242.80
2012-09-30 4,391.45 215.50 371.55
2012-06-30 4,306.10 188.20 366.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Serco Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Serco Group used its assets less efficiently than the Europe Commercial Services industry average last year based on Return on Assets.
  • Serco Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Serco Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Serco Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SEO Health

 How is Serco Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Serco Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Serco Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Serco Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Serco Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Serco Group Company Filings, last reported 3 months ago.

DB:SEO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 386.80 254.30 62.50
2018-09-30 386.80 254.30 62.50
2018-06-30 277.90 300.00 50.30
2018-03-31 277.90 300.00 50.30
2017-12-31 265.30 291.70 112.10
2017-09-30 307.20 291.70 112.10
2017-06-30 272.50 303.20 117.70
2017-03-31 272.50 303.20 117.70
2016-12-31 398.80 328.10 177.80
2016-09-30 398.80 328.10 177.80
2016-06-30 400.40 309.20 166.20
2016-03-31 400.40 309.20 166.20
2015-12-31 282.10 425.70 323.60
2015-06-30 364.10 433.90 157.10
2015-03-31 364.10 433.90 157.10
2014-12-31 -66.20 823.80 180.10
2014-09-30 -66.20 823.80 180.10
2014-06-30 1,229.00 807.10 220.80
2014-03-31 1,229.00 807.10 220.80
2013-12-31 1,095.90 876.40 125.10
2013-09-30 1,095.90 876.40 125.10
2013-06-30 1,131.40 949.60 193.90
2013-03-31 1,131.40 949.60 193.90
2012-12-31 1,128.90 776.10 142.80
2012-09-30 1,128.90 780.50 198.60
2012-06-30 1,027.70 860.50 218.80
  • Serco Group's level of debt (65.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (79.8% vs 65.7% today).
  • Debt is not well covered by operating cash flow (1.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).
X
Financial health checks
We assess Serco Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Serco Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SEO Dividends

 What is Serco Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Serco Group dividends. Estimated to be 1.92% next year.
If you bought €2,000 of Serco Group shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Serco Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Serco Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SEO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SEO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.03 6.00
2020-12-31 0.02 8.00
2019-12-31 0.02 5.00
DB:SEO Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2016-03-24 0.000 0.000
2016-02-25 0.000 0.000
2015-08-11 0.000 0.000
2015-03-12 0.000 0.000
2014-04-07 0.106 4.171
2014-03-04 0.106 2.415
2013-03-05 0.101 1.860
2012-02-28 0.168 3.017
2012-02-27 0.084 1.523
2011-08-24 0.077 1.522
2011-03-02 0.074 1.325
2011-03-01 0.074 1.298
2010-03-01 0.063 1.067
2010-02-26 0.063 1.116

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Serco Group has not reported any payouts.
  • Unable to verify if Serco Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Serco Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Serco Group has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Serco Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Serco Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Serco Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SEO Management

 What is the CEO of Serco Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rupert Soames
COMPENSATION £3,804,925
AGE 59
TENURE AS CEO 4.9 years
CEO Bio

Mr. Rupert C. Soames, OBE, has been the Group Chief Executive of Serco Group Plc since June 01, 2014. Mr. Soames served as the Group Chief Executive at Aggreko plc from July 1, 2003 to April 24, 2014. He had significant relevant international, high service and information systems experience. He served as the Chief Executive of the Banking and Securities Division at Misys PLC. He served at GEC PLC for 15 years, working in a number of their subsidiaries. In the last 4 years of his service with GEC, he was responsible for the UK, African and Asian operations of Avery Berkel. He served as the Managing Director of Avery Berkel UK Limited, Assistant Commercial Director of GEC PLC and the President Director General of GPTelecom SA. Mr. Soames served as an Acting Chairman of Electrocomponents plc since October 2011 to November 1, 2012 and also previously served as its Acting Chairman from July 2010 to October 1, 2010. He serves as a Director of GPT Data Systems Limited. Mr. Soames has been Non-Executive Director of DS Smith Plc since March 1, 2019. He has been a Director at Serco Group plc since May 8, 2014. He served as a Director of Aggreko plc since July 1, 2003. He served as Senior Independent Director and Non-Executive Director at Electrocomponents plc from November 1, 2012 to July 20, 2016 and from July 13, 2007 to July 20, 2016 respectively. He served as a Senior Independent Director of Electrocomponents plc until October, 2011. Mr. Soames served as a Non-executive Director of Baggeridge Brick plc from January 1, 2003 to February 14, 2006.

CEO Compensation
  • Rupert's compensation has increased in line with Serco Group recently becoming profitable.
  • Rupert's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Serco Group management team in years:

3.1
Average Tenure
  • The tenure for the Serco Group management team is about average.
Management Team

Rupert Soames

TITLE
Group CEO & Director
COMPENSATION
£4M
AGE
59
TENURE
4.9 yrs

Angus Cockburn

TITLE
Group CFO & Director
COMPENSATION
£2M
AGE
55
TENURE
4.5 yrs

Stuart Ford

TITLE
Head of Investor Relations

David Eveleigh

TITLE
Group General Counsel & Company Secretary
TENURE
3.4 yrs

Marcus De Ville

TITLE
Head of Media Relations

Anthony Kirby

TITLE
Group Human Resources Director
TENURE
1.5 yrs

Ian Crichton

TITLE
Managing Director of Health Business
TENURE
3.1 yrs

Paul McCarter

TITLE
Managing Director - UK Defense Business
TENURE
2.8 yrs

Phil Malem

TITLE
Chief Executive Officer of Serco Middle East

Lianne Dance

TITLE
Group Head of Reward
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Serco Group board of directors in years:

1.8
Average Tenure
59.5
Average Age
  • The average tenure for the Serco Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Roy Gardner

TITLE
Chairman of the Board
COMPENSATION
£252K
AGE
73
TENURE
3.8 yrs

Rupert Soames

TITLE
Group CEO & Director
COMPENSATION
£4M
AGE
59
TENURE
4.9 yrs

Angus Cockburn

TITLE
Group CFO & Director
COMPENSATION
£2M
AGE
55
TENURE
4.5 yrs

Dave Dacquino

TITLE
Chairman & CEO of Serco Americas
TENURE
1.8 yrs

Janis Lomax

TITLE
Independent Non-Executive Director
COMPENSATION
£70K
AGE
72
TENURE
5.1 yrs

John Rishton

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£77K
AGE
60
TENURE
0.3 yrs

Lynne Peacock

TITLE
Independent Non-Executive Director
COMPENSATION
£31K
AGE
65
TENURE
1.8 yrs

A. Bashforth

TITLE
Independent Non-Executive Director
COMPENSATION
£17K
AGE
48
TENURE
1.6 yrs

Ian El-Mokadem

TITLE
Independent Non-Executive Director
COMPENSATION
£29K
AGE
50
TENURE
1.8 yrs

Eric Born

TITLE
Independent Non-Executive Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Serco Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
27. Feb 19 Buy Roy Gardner Individual 26. Feb 19 26. Feb 19 50,000 €1.51 €75,390
X
Management checks
We assess Serco Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Serco Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SEO News

Simply Wall St News

SEO Company Info

Description

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. The company offers base and operational support engineering, and management and information, as well as nuclear, space, and maritime services for the defense sector; and custodial, immigration detention, and detainee transport and monitoring services for the justice and immigration sectors. It also provides rail, ferry, and cycle operations; road traffic management; and air traffic control services to the transportation sector, as well as integrated facilities management, pathology and non-clinical support, and patient administration and contact services for the health sector. In addition, the company offers citizen services, including contact centers and case management; front, middle, back office, and IT; and employment and skills services. The company serves the United Kingdom and Canadian governments, devolved authorities, and other public sector customers; and federal and civilian agencies, and various state and municipal governments. Serco Group plc was founded in 1929 and is based in Hook, the United Kingdom.

Details
Name: Serco Group plc
SEO
Exchange: DB
Founded: 1929
£1,595,281,920
1,108,632,260
Website: http://www.serco.com
Address: Serco Group plc
Serco House,
16 Bartley Wood Business Park,
Hook,
Hampshire, RG27 9UY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SRP Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK SECC.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB SEO Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE SRPL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK SCGP.Y SPONSORED ADR Pink Sheets LLC US USD 08. Jan 2009
Number of employees
Current staff
Staff numbers
50,000
Serco Group employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 21:42
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/04/04
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.