Obermatt

Serco

LSE:SRP · GB0007973794
Commercial Services & SuppliesLarge

360

71
EV / EBIT61
Price / Owner Earnings86
Owner Earnings Yield79
Dividend Yield31
Price/Sales69
EV / Gross Profit34
Price/Book27
Return on Capital53
Cash Return on Capital67
Return on Equity72
EBIT Margin14
Gross Profitability27
Cash Conversion76
Accruals71
Owner Earnings Margin35
Sales growth55
Profit Growth63
Long-Term EPS Growth50
Owner Earnings Growth96
Reinvestment77
Price momentum89
Debt load47
Refinancing42
Debt Payback45
Liquidity43
Analyst ratings29
Opinion Changes50
Price Target Upside51
Market mood30
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Serco generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUK
IndustryCommercial Services & Supplies
SizeLarge
TypePublic Company
ExchangeLSE
Founded1986
Employees20,624
Websiteserco.com
ISINGB0007973794
Last UpdateApr 2, 2026

Description

Serco Group plc (Serco) provides public services across various sectors including defence, transport, healthcare, and immigration. Business Segments The company operates through Defence, Transport, Healthcare, Immigration and Community Services, an…

Analysis

Middle-of-the-road

Serco Group plc sits in the middle of our grid: average quality, average price, no obvious signal in either direction.

On valuation, the picture is attractive. The owner-earnings multiple stands at 14.4×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 2% a year, against analyst forecasts of 8%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is adequate. The company scores 16/20 on our value-creation score: strong value creator.

No flags apply to this company at this time: accounts, balance sheet, and cash quality all pass. A clean bill of health is meaningful, not just the absence of a warning. This analysis describes numbers; it is not investment advice.

360° rank · history

1007550250
46
2023202420252026

All-time high

67

Jan 2023

All-time low

32

Mar 2026

Average rank

51

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
69
68
72
81
Price/Earnings
31
59
57
45
Price/Book
27
40
54
67
Dividend Yield
31
45
48
39
Value (overall)
21
39
57
57

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

Similar Stocks

The companies this stock is ranked against.

Compare Serco with its peers
Aegean Airlines
ATH:AEGN
62
CountryGreece
IndustryAirlines
SizeMedium
Full Stock Analysis →
Synergie
PAR:SDG
84
CountryLuxembourg
IndustryProfessional Services
SizeSmall
Full Stock Analysis →
Assystem
PAR:ASY
21
CountryFrance
IndustryProfessional Services
SizeSmall
Full Stock Analysis →
Fiverr International
NYQ:FVRR
90
CountryIsrael
IndustryProfessional Services
SizeSmall
Full Stock Analysis →
Bureau Veritas
PAR:BVI
77
CountryFrance
IndustryProfessional Services
SizeX-Large
Full Stock Analysis →
Elixirr International
LSE:ELIX
84
CountryUK
IndustryProfessional Services
SizeSmall
Full Stock Analysis →

Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →