Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. More Details
Excellent balance sheet with solid track record.
Share Price & News
How has Serco Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SRP is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SRP's weekly volatility (3%) has been stable over the past year.
7 Day Return
GB Commercial Services
1 Year Return
GB Commercial Services
Return vs Industry: SRP underperformed the UK Commercial Services industry which returned 24.3% over the past year.
Return vs Market: SRP underperformed the UK Market which returned 27.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Serco Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StSerco Group plc (LON:SRP) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
1 month ago | Simply Wall StSerco Group plc's (LON:SRP) Attractive Combination: Does It Earn A Place In Your Dividend Portfolio?
1 month ago | Simply Wall StAre Robust Financials Driving The Recent Rally In Serco Group plc's (LON:SRP) Stock?
Is Serco Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SRP (£1.36) is trading below our estimate of fair value (£2.01)
Significantly Below Fair Value: SRP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SRP is good value based on its PE Ratio (12.5x) compared to the UK Commercial Services industry average (36.3x).
PE vs Market: SRP is good value based on its PE Ratio (12.5x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: SRP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SRP's PB Ratio (2.3x) is in line with the GB Commercial Services industry average.
How is Serco Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRP's earnings are forecast to decline over the next 3 years (-4.2% per year).
Earnings vs Market: SRP's earnings are forecast to decline over the next 3 years (-4.2% per year).
High Growth Earnings: SRP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SRP's revenue (3.5% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: SRP's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SRP's Return on Equity is forecast to be low in 3 years time (12.2%).
How has Serco Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRP has high quality earnings.
Growing Profit Margin: SRP's current net profit margins (3.4%) are higher than last year (1.6%).
Past Earnings Growth Analysis
Earnings Trend: SRP has become profitable over the past 5 years, growing earnings by 67.2% per year.
Accelerating Growth: SRP's earnings growth over the past year (163.4%) exceeds its 5-year average (67.2% per year).
Earnings vs Industry: SRP earnings growth over the past year (163.4%) exceeded the Commercial Services industry -4.5%.
Return on Equity
High ROE: SRP's Return on Equity (18.7%) is considered low.
How is Serco Group's financial position?
Financial Position Analysis
Short Term Liabilities: SRP's short term assets (£976.1M) exceed its short term liabilities (£868.2M).
Long Term Liabilities: SRP's short term assets (£976.1M) exceed its long term liabilities (£827.1M).
Debt to Equity History and Analysis
Debt Level: SRP's debt to equity ratio (54.4%) is considered high.
Reducing Debt: SRP's debt to equity ratio has reduced from 133.3% to 54.4% over the past 5 years.
Debt Coverage: SRP's debt is well covered by operating cash flow (69.1%).
Interest Coverage: SRP's interest payments on its debt are well covered by EBIT (6.4x coverage).
What is Serco Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SRP's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: SRP's dividend (1.03%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
Stability and Growth of Payments
Stable Dividend: SRP's dividend payments have been volatile in the past 10 years.
Growing Dividend: SRP's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.9%), SRP's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SRP's dividends in 3 years are forecast to be well covered by earnings (26.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rupert Soames (61 yo)
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 h...
CEO Compensation Analysis
Compensation vs Market: Rupert's total compensation ($USD6.96M) is above average for companies of similar size in the UK market ($USD1.37M).
Compensation vs Earnings: Rupert's compensation has been consistent with company performance over the past year.
Experienced Management: SRP's management team is considered experienced (3.7 years average tenure).
Experienced Board: SRP's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Serco Group plc's company bio, employee growth, exchange listings and data sources
- Name: Serco Group plc
- Ticker: SRP
- Exchange: LSE
- Founded: 1929
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: UK£1.634b
- Shares outstanding: 1.20b
- Website: https://www.serco.com
Number of Employees
- Serco Group plc
- Serco House
- 16 Bartley Wood Business Park
- RG27 9UY
- United Kingdom
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...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/17 01:53|
|End of Day Share Price||2021/05/14 00:00|
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.