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Serco Group

LSE:SRP
Snowflake Description

Moderate growth potential with questionable track record.

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

Serco Group plc provides public services in the Asia Pacific, the Middle East, Europe, the United Kingdom, and North America. The last earnings update was 201 days ago. More info.


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  • Serco Group has significant price volatility in the past 3 months.
SRP Share Price and Events
7 Day Returns
2.5%
LSE:SRP
1%
GB Commercial Services
0.9%
GB Market
1 Year Returns
26.4%
LSE:SRP
-1.9%
GB Commercial Services
-2.4%
GB Market
SRP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Serco Group (SRP) 2.5% 2.7% 27.7% 26.4% 43% -72.4%
GB Commercial Services 1% 0.7% 2.9% -1.9% 18.8% -20%
GB Market 0.9% 2.9% 3.5% -2.4% 19.3% -2.3%
1 Year Return vs Industry and Market
  • SRP outperformed the Commercial Services industry which returned -1.9% over the past year.
  • SRP outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.4% over the past year.
Price Volatility
SRP
Industry
5yr Volatility vs Market

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.

LSE:SRP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

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 LSE:SRP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.46
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.462 (1 + (1- 19%) (24.02%))
0.552
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 8.77%)
8.25%

Discounted Cash Flow Calculation for LSE:SRP 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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SRP DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 12.65 59.74 54.04 48.89 44.24
Source Analyst x4 Analyst x6 Est @ -9.53% Est @ -9.53% Est @ -9.53%
Present Value
Discounted (@ 8.25%)
11.69 50.98 42.61 35.61 29.77
Present value of next 5 years cash flows £170.66
LSE:SRP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £44.24 × (1 + 1.23%) ÷ (8.25% – 1.23%)
£638.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £638.01 ÷ (1 + 8.25%)5
£429.32
LSE:SRP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £170.66 + £429.32
£599.98
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £599.98 / 1,090.97
£0.55
LSE:SRP Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.55
Current discount Discount to share price of £1.15
= -1 x (£1.15 - £0.55) / £0.55
-108.2%

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

  • The current share price of Serco Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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
LSE:SRP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in GBP £0.03
LSE:SRP Share Price ** LSE (2019-02-19) in GBP £1.15
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PE Ratio Median Figure of 27 Publicly-Listed Commercial Services Companies 21.99x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 814 Publicly-Listed Companies 15.89x

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

** Primary Listing of Serco Group.

LSE:SRP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 1.15 ÷ 0.03

37.23x

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 GB Commercial Services industry average.
  • Serco Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Serco Group's expected growth come at a high price?
Raw Data
LSE:SRP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
38.3%per year
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PEG Ratio Median Figure of 19 Publicly-Listed Commercial Services Companies 1.25x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 577 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

LSE:SRP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.23x ÷ 38.3%

0.97x

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

  • Serco Group is good 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
LSE:SRP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in GBP £0.25
LSE:SRP Share Price * LSE (2019-02-19) in GBP £1.15
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PB Ratio Median Figure of 36 Publicly-Listed Commercial Services Companies 1.69x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,362 Publicly-Listed Companies 1.53x
LSE:SRP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.15 ÷ 0.25

4.54x

* 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 GB 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 1/6, 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.

Future Performance

 How is Serco Group expected to perform in the next 1 to 3 years based on estimates from 11 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
38.3%
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 1.2%.
Growth vs Market Checks
  • Serco Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Serco Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SRP Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SRP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 38.3%
LSE:SRP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 3.5%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*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
LSE:SRP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SRP Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,423 1
2022-12-31 3,216 2
2021-12-31 3,142 105 3
2020-12-31 3,002 109 77 10
2019-12-31 2,891 17 53 11
2018-12-31 2,817 1 29 11
LSE:SRP Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-30 2,813 -20 34
2018-03-31 2,883 -18 17
2017-12-31 2,954 -16 -0
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
2015-12-31 3,177 -19 -86

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Serco Group's earnings are expected to grow significantly at over 20% yearly.
  • Serco Group's revenue is expected to grow by 3.5% 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
LSE:SRP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Serco Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SRP 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 0.10 0.10 0.10 1.00
2020-12-31 0.07 0.07 0.06 5.00
2019-12-31 0.05 0.06 0.04 6.00
2018-12-31 0.02 0.04 0.01 7.00
LSE:SRP Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-30 0.03
2018-03-31 0.02
2017-12-31 -0.00
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
2015-12-31 -0.09

*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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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 3/6, 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.

Past Performance

  How has Serco Group performed over the past 5 years?

  • Serco Group's last earnings update was 201 days ago.
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's year on year earnings growth rate has been positive over 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 GB 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 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SRP Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 2,812.50 33.60 202.10
2018-03-31 2,883.05 16.70 210.25
2017-12-31 2,953.60 -0.20 218.40
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
2012-03-31 4,476.25 181.65 384.25

*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 GB Commercial Services industry average last year based on Return on Assets.
  • Serco Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (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.

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 2.2x 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 7 months ago.

LSE:SRP Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 277.90 300.00 50.30
2018-03-31 277.90 300.00 50.30
2017-12-31 307.20 291.70 112.10
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
2012-03-31 1,027.70 860.50 218.80
  • Serco Group's level of debt (108%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (83.9% vs 108% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.3x 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 2/6, 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.

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 1.67% 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
LSE:SRP 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 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 25 Stocks 3.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

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

LSE:SRP Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.04 1.00
2020-12-31 0.02 9.00
2019-12-31 0.02 8.00
2018-12-31 0.00 11.00
LSE:SRP 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
2009-02-27 0.050 1.123
2009-02-20 0.043 1.053

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 (3x 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 1.1%) - 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.

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 4.8 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. 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 United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Serco Group management team in years:

3.3
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
4.8 yrs

Angus Cockburn

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

Stuart Ford

TITLE
Head of Investor Relations

David Eveleigh

TITLE
Group General Counsel & Company Secretary
TENURE
3.3 yrs

Marcus De Ville

TITLE
Head of Media Relations

Anthony Kirby

TITLE
Group Human Resources Director
TENURE
1.3 yrs

Ian Crichton

TITLE
Managing Director of Health Business
TENURE
2.9 yrs

Paul McCarter

TITLE
Managing Director - UK Defense Business
TENURE
2.7 yrs

Ian Downie

TITLE
Chief Executive of ITNET Business

Mark Irwin

TITLE
Chief Executive Officer of Serco Asia Pacific
TENURE
5.8 yrs
Board of Directors Tenure

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

1.6
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
3.6 yrs

Rupert Soames

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

Angus Cockburn

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

Dave Dacquino

TITLE
Chairman & CEO of Serco Americas
TENURE
1.7 yrs

Janis Lomax

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

John Rishton

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

Lynne Peacock

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

A. Bashforth

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

Ian El-Mokadem

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

Eric Born

TITLE
Non-Executive Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
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.

News

Simply Wall St News

Is Serco Group plc (LON:SRP) Investing Your Capital Efficiently?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Boasting A 12% Return On Equity, Is Serco Group plc (LON:SRP) A Top Quality Stock?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every £1 worth of shareholders' equity, it generated £0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Serco Group plc's (LON:SRP) Balance Sheet A Threat To Its Future?

However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Does The Serco Group plc (LON:SRP) Share Price Tend To Follow The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Does Serco Group plc's (LON:SRP) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Rupert Soames's Compensation Compare With Similar Sized Companies. … We looked at a group of companies with market capitalizations from UK£770m to UK£2.5b, and the median CEO compensation was UK£1m.

Simply Wall St -

Is It Too Late To Consider Buying Serco Group plc (LON:SRP)?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Let’s examine Serco Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Is Serco Group plc (LON:SRP) Attractive At Its Current PE Ratio?

While this makes SRP appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … See our latest analysis for Serco Group

Simply Wall St -

How Should You Think About Serco Group plc's (LON:SRP) Risks?

Generally, an investor should consider two types of risk that impact the market value of SRP. … The second risk is market-wide, which arises from investing in the stock market. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one.

Simply Wall St -

How Financially Strong Is Serco Group plc (LON:SRP)?

While small-cap stocks, such as Serco Group plc (LON:SRP) with its market cap of UK£1.08b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Should You Buy Serco Group plc (LON:SRP)?

Let’s examine Serco Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity? … View out our latest analysis for Serco Group … According to my valuation model, Serco Group seems to be fairly priced at around

Simply Wall St -

Company Info

Map
Description

Serco Group plc provides public services in the Asia Pacific, the Middle East, Europe, the United Kingdom, and North America. It provides defense, health, justice and immigration, transport, and citizen services. The company also offers non-clinical support services to hospitals; environmental and leisure services, as well as a range of front, middle, and back-office services to public sector customers; and IT services. In addition, it offers hospital facilities management services; and professional, technology, and management services for defense, transport, and citizen services for the federal government, selected state and municipal governments. Serco Group plc was founded in 1929 and is based in Hook, the United Kingdom.

Details
Name: Serco Group plc
SRP
Exchange: LSE
Founded: 1929
£1,249,155,353
1,090,965,374
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: 2019/02/19 20:40
End of day share price update: 2019/02/19 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/08/02
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


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.