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Serco Group plcLSE:SRP Stock Report

Market Cap UK£2.5b
Share Price
UK£2.50
My Fair Value
n/a
1Y40.9%
7D-1.7%
Portfolio Value
​
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Serco Group plc

LSE:SRP Stock Report

Market Cap: UK£2.5b

Serco Group (SRP) Stock Overview

Provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. More details

SRP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends1/6

Rewards

Earnings are forecast to grow 31.37% per year

Risk Analysis

Profit margins (1%) are lower than last year (2.9%)

Significant insider selling over the past 3 months

Large one-off items impacting financial results


SRP Community Fair Values

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See what 7 others think this stock is worth. Follow their fair value or set your own to get alerts.

SRP logo
Serco Group

Rising Digital, Outsourcing And Defense Demands Will Redefine Public Services

Key Takeaways Strong contract wins, rapid integration of acquisitions, and adoption of digital solutions are driving sustainable, accelerating revenue and margin growth beyond current market expectations. Structural shifts in government outsourcing and organizational transformation are positioning Serco for long-term leadership and scale advantages in core sectors.
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UK£2.98
FV
16.1% undervalued intrinsic discount
4.34%
Revenue growth p.a.
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Serco Group

Government Insourcing Trends Will Curb Contract Wins Despite Strong Orders

Key Takeaways Heightened government scrutiny, insourcing trends, and rapid technology adoption threaten contract visibility, margins, and long-term revenue stability. Heavy sector and geographic concentration, plus reputational issues, increase vulnerability to policy shifts and limit profitable market expansion.
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UK£1.47
FV
69.9% overvalued intrinsic discount
2.97%
Revenue growth p.a.
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Serco Group

Expanding North American And European Contracts Will Unlock Future Potential

Key Takeaways Growth in government defense spending and strategic focus on high-margin sectors are driving revenue expansion, margin improvement, and strong order pipelines. Investments in digital transformation and geographic diversification are boosting efficiency, competitiveness, and revenue stability while reducing exposure to single-market risks.
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UK£2.52
FV
0.9% undervalued intrinsic discount
3.68%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
5users have followed this narrative
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Serco Group plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Serco Group
Historical stock prices
Current Share PriceUK£2.50
52 Week HighUK£2.60
52 Week LowUK£1.36
Beta0.52
1 Month Change5.93%
3 Month Change14.16%
1 Year Change40.92%
3 Year Change47.32%
5 Year Change109.91%
Change since IPO1,206.65%

Recent News & Updates

Recent updates

User avatar

International Expansion And Defense Focus Will Boost Future Prospects

Strategic growth initiatives in the defense sector and North America are expected to drive revenue and profit, boosted by key acquisitions.

There's No Escaping Serco Group plc's (LON:SRP) Muted Earnings

Jun 10
There's No Escaping Serco Group plc's (LON:SRP) Muted Earnings

Calculating The Intrinsic Value Of Serco Group plc (LON:SRP)

May 22
Calculating The Intrinsic Value Of Serco Group plc (LON:SRP)

With EPS Growth And More, Serco Group (LON:SRP) Makes An Interesting Case

Feb 23
With EPS Growth And More, Serco Group (LON:SRP) Makes An Interesting Case

Is Serco Group plc (LON:SRP) Worth UK£1.6 Based On Its Intrinsic Value?

Dec 13
Is Serco Group plc (LON:SRP) Worth UK£1.6 Based On Its Intrinsic Value?

Here's Why Serco Group (LON:SRP) Can Manage Its Debt Responsibly

Nov 10
Here's Why Serco Group (LON:SRP) Can Manage Its Debt Responsibly

Serco Group's (LON:SRP) Shareholders Will Receive A Bigger Dividend Than Last Year

Sep 04
Serco Group's (LON:SRP) Shareholders Will Receive A Bigger Dividend Than Last Year

Serco Group (LON:SRP) Is Increasing Its Dividend To £0.0114

Aug 20
Serco Group (LON:SRP) Is Increasing Its Dividend To £0.0114

Serco Group (LON:SRP) Is Paying Out A Larger Dividend Than Last Year

Aug 06
Serco Group (LON:SRP) Is Paying Out A Larger Dividend Than Last Year

These 4 Measures Indicate That Serco Group (LON:SRP) Is Using Debt Reasonably Well

Mar 21
These 4 Measures Indicate That Serco Group (LON:SRP) Is Using Debt Reasonably Well

Serco Group (LON:SRP) Has Announced That It Will Be Increasing Its Dividend To £0.0192

Mar 03
Serco Group (LON:SRP) Has Announced That It Will Be Increasing Its Dividend To £0.0192

Is There An Opportunity With Serco Group plc's (LON:SRP) 24% Undervaluation?

Jan 30
Is There An Opportunity With Serco Group plc's (LON:SRP) 24% Undervaluation?

Calculating The Fair Value Of Serco Group plc (LON:SRP)

Oct 18
Calculating The Fair Value Of Serco Group plc (LON:SRP)

Serco Group's (LON:SRP) Upcoming Dividend Will Be Larger Than Last Year's

Sep 02
Serco Group's (LON:SRP) Upcoming Dividend Will Be Larger Than Last Year's

Is Serco Group (LON:SRP) A Risky Investment?

Aug 27
Is Serco Group (LON:SRP) A Risky Investment?

Are Serco Group plc (LON:SRP) Investors Paying Above The Intrinsic Value?

Jun 29
Are Serco Group plc (LON:SRP) Investors Paying Above The Intrinsic Value?

Does Serco Group (LON:SRP) Have A Healthy Balance Sheet?

May 27
Does Serco Group (LON:SRP) Have A Healthy Balance Sheet?

Serco Group (LON:SRP) Has Announced That It Will Be Increasing Its Dividend To UK£0.016

Apr 28
Serco Group (LON:SRP) Has Announced That It Will Be Increasing Its Dividend To UK£0.016

Serco Group's (LON:SRP) Upcoming Dividend Will Be Larger Than Last Year's

Mar 23
Serco Group's (LON:SRP) Upcoming Dividend Will Be Larger Than Last Year's

Serco Group's (LON:SRP) Shareholders Will Receive A Bigger Dividend Than Last Year

Mar 02
Serco Group's (LON:SRP) Shareholders Will Receive A Bigger Dividend Than Last Year

Here's Why I Think Serco Group (LON:SRP) Is An Interesting Stock

Nov 16
Here's Why I Think Serco Group (LON:SRP) Is An Interesting Stock

Shareholder Returns

SRPGB Commercial ServicesGB Market
7D-1.7%-1.5%-0.5%
1Y40.9%8.0%16.8%

Return vs Industry: SRP exceeded the UK Commercial Services industry which returned 10.3% over the past year.

Return vs Market: SRP exceeded the UK Market which returned 18.2% over the past year.

Price Volatility

Is SRP's price volatile compared to industry and market?
SRP volatility
SRP Average Weekly Movement2.8%
Commercial Services Industry Average Movement4.7%
Market Average Movement4.7%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.6%

Stable Share Price: SRP has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: SRP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192950,000Anthony Kirbywww.serco.com

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. It offers service design and advisory, resourcing, programme management, systems integration, case management, engineering, and assets and facilities management services. The company also provides administrative and back office, asylum seeker accommodation or passenger transport services; and supports in the decarbonization journeys of customers.

Serco Group plc Fundamentals Summary

How do Serco Group's earnings and revenue compare to its market cap?
SRP fundamental statistics
Market capUK£2.49b
Earnings (TTM)UK£48.60m
Revenue (TTM)UK£4.85b
51.2x
P/E Ratio
0.5x
P/S Ratio

Is SRP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SRP income statement (TTM)
RevenueUK£4.85b
Cost of RevenueUK£4.32b
Gross ProfitUK£524.50m
Other ExpensesUK£475.90m
EarningsUK£48.60m

Last Reported Earnings

Jun 30, 2025

Next Earnings Date

Mar 05, 2026

Earnings per share (EPS)0.049
Gross Margin10.82%
Net Profit Margin1.00%
Debt/Equity Ratio49.8%

How did SRP perform over the long term?

See historical performance and comparison

Dividends

1.7%
Current Dividend Yield
90%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/06 08:55
End of Day Share Price 2025/11/06 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Serco Group plc is covered by 26 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul Daniel SullivanBarclays
James RosenthalBarclays
James BaylissBerenberg