LSE:SRP

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Executive Summary

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. More Details


Snowflake Analysis

Solid track record and good value.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

SRP

-1.7%

GB Commercial Services

-3.7%

GB Market


1 Year Return

-16.7%

SRP

-14.2%

GB Commercial Services

-19.3%

GB Market

Return vs Industry: SRP underperformed the UK Commercial Services industry which returned -13.6% over the past year.

Return vs Market: SRP exceeded the UK Market which returned -19.7% over the past year.


Shareholder returns

SRPIndustryMarket
7 Day-1.1%-1.7%-3.7%
30 Day4.3%-1.4%-4.2%
90 Day-18.5%-1.6%-4.3%
1 Year-16.7%-16.7%-10.9%-14.2%-16.2%-19.3%
3 Year13.2%13.2%-12.7%-21.9%-13.3%-24.0%
5 Year30.5%30.5%16.9%-5.6%10.2%-14.6%

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

Valuation

Is Serco Group undervalued compared to its fair value and its price relative to the market?

27.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRP (£1.29) is trading below our estimate of fair value (£1.79)

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 (12.9x) compared to the GB Commercial Services industry average (30.8x).

PE vs Market: SRP is good value based on its PE Ratio (12.9x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SRP is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: SRP is overvalued based on its PB Ratio (2.3x) compared to the GB Commercial Services industry average (1.7x).


Next Steps

Future Growth

How is Serco Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRP's forecast earnings growth (4% per year) is above the savings rate (1.2%).

Earnings vs Market: SRP's earnings (4% per year) are forecast to grow slower than the UK market (23.9% per year).

High Growth Earnings: SRP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SRP's revenue (2% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: SRP's revenue (2% 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 (14.1%).


Next Steps

Past Performance

How has Serco Group performed over the past 5 years?

97.3%

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 (1.7%).


Past Earnings Growth Analysis

Earnings Trend: SRP has become profitable over the past 5 years, growing earnings by 97.3% per year.

Accelerating Growth: SRP's earnings growth over the past year (139.3%) exceeds its 5-year average (97.3% per year).

Earnings vs Industry: SRP earnings growth over the past year (139.3%) exceeded the Commercial Services industry 0.2%.


Return on Equity

High ROE: SRP's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is Serco Group's financial position?


Financial Position Analysis

Short Term Liabilities: SRP's short term assets (£952.8M) do not cover its short term liabilities (£977.4M).

Long Term Liabilities: SRP's short term assets (£952.8M) exceed its long term liabilities (£731.5M).


Debt to Equity History and Analysis

Debt Level: SRP's debt to equity ratio (57.1%) is considered high.

Reducing Debt: SRP's debt to equity ratio has reduced from 113.5% to 57.1% over the past 5 years.

Debt Coverage: SRP's debt is well covered by operating cash flow (59.9%).

Interest Coverage: SRP's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.55%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SRP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SRP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SRP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SRP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SRP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SRP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Rupert Soames (61 yo)

6.42yrs

Tenure

UK£5,700,977

Compensation

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 ($USD7.40M) is above average for companies of similar size in the UK market ($USD1.70M).

Compensation vs Earnings: Rupert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rupert Soames
Group CEO & Executive Director6.42yrsUK£5.70m0.37%
£ 6.0m
Angus Cockburn
Group CFO & Executive Director6yrsUK£3.06m0.15%
£ 2.5m
Anthony Kirby
Group Chief Operating Officer0.75yrno datano data
Paul Checketts
Head of Investor Relationsno datano datano data
David Eveleigh
Group General Counsel & Company Secretary4.92yrsno datano data
Marcus De Ville
Head of Media Relationsno datano datano data
Ian Crichton
Managing Director of Health Business4.58yrsno datano data
Paul McCarter
Managing Director - UK Defense Business4.33yrsno datano data
Phil Malem
Chief Executive Officer of Serco Middle East1.5yrsno datano data
Lianne Dance
Group Head of Reward1.83yrsno datano data
Wallace Weatherill
Managing Director for Dubai Metro & Tram of Serco Middle East0.33yrno datano data
Ian Downie
Chief Executive of ITNET Businessno datano datano data

4.3yrs

Average Tenure

Experienced Management: SRP's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rupert Soames
Group CEO & Executive Director6.42yrsUK£5.70m0.37%
£ 6.0m
Angus Cockburn
Group CFO & Executive Director6yrsUK£3.06m0.15%
£ 2.5m
David Dacquino
Chairman & CEO of Serco Americas3.33yrsno datano data
John Rishton
Senior Independent Non-Executive Director1.75yrsUK£92.28k0.0035%
£ 56.0k
Roy Gardner
Independent Chairman of the Board5.25yrsUK£264.22k0.016%
£ 259.8k
Ian El-Mokadem
Independent Non-Executive Director3.25yrsUK£63.00k0.0041%
£ 65.0k
Lynne Peacock
Independent Non-Executive Director3.25yrsUK£70.50k0.0012%
£ 19.5k
Eric Born
Independent Non-Executive Director1.75yrsUK£65.87k0.0024%
£ 38.9k
A. Bashforth
Independent Non-Executive Director3.08yrsUK£77.26k0.00081%
£ 12.9k
Sue Owen
Independent Non-Executive Director0.17yrno datano data

3.3yrs

Average Tenure

61yo

Average Age

Experienced Board: SRP's board of directors are considered experienced (3.3 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Serco Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Serco Group plc
  • Ticker: SRP
  • Exchange: LSE
  • Founded: 1929
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£1.596b
  • Shares outstanding: 1.23b
  • Website: https://www.serco.com

Number of Employees


Location

  • Serco Group plc
  • Serco House
  • 16 Bartley Wood Business Park
  • Hook
  • Hampshire
  • RG27 9UY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SECC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SRPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SEODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SRPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
SCGP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2009

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 21:47
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.