ScoreWhy is Serco Group Plc ?
1
High Management Efficiency with a high ROCE of 23.24%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.58
3
Healthy long term growth as Net Sales has grown by an annual rate of 4.86% and Operating profit at 8.61%
4
Flat results in Dec 25
- INTEREST COVERAGE RATIO(Q) Lowest at 832.75
- RAW MATERIAL COST(Y) Grown by 14.09% (YoY)
- INTEREST(Q) Highest at GBP 28.7 MM
5
With ROE of 16.67%, it has a fair valuation with a 2.73 Price to Book Value
- Over the past year, while the stock has generated a return of 20.08%, its profits have fallen by -9.5%
6
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
7
Consistent Returns over the last 3 years
- Along with generating 20.08% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Serco Group Plc should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Serco Group Plc for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Serco Group Plc
20.08%
1.76
21.13%
FTSE 100
17.87%
1.52
11.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.86%
EBIT Growth (5y)
8.61%
EBIT to Interest (avg)
9.58
Debt to EBITDA (avg)
0.60
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
3.31
Tax Ratio
70.75%
Dividend Payout Ratio
31.29%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
23.24%
ROE (avg)
19.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
2.73
EV to EBIT
9.46
EV to EBITDA
5.37
EV to Capital Employed
2.21
EV to Sales
0.56
PEG Ratio
NA
Dividend Yield
1.94%
ROCE (Latest)
23.34%
ROE (Latest)
16.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 847.8 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 53.89%
CASH AND EQV(HY)
Highest at GBP 199.3 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 199.27 times
DEBTORS TURNOVER RATIO(HY)
Highest at 8.3 times
NET SALES(Q)
Highest at GBP 2,489.2 MM
-9What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 832.75
RAW MATERIAL COST(Y)
Grown by 14.09% (YoY
INTEREST(Q)
Highest at GBP 28.7 MM
OPERATING PROFIT(Q)
Lowest at GBP 239 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 9.6 %
NET PROFIT(Q)
Fallen at -25.29%
Here's what is working for Serco Group Plc
Operating Cash Flow
Highest at GBP 847.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
Highest at GBP 2,489.2 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Cash and Eqv
Highest at GBP 199.3 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 199.27 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 8.3 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 53.89%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at GBP 115.1 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Serco Group Plc
Interest Coverage Ratio
Lowest at 832.75
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at GBP 28.7 MM
in the last five periods and Increased by 25.33% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Operating Profit
Lowest at GBP 239 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (GBP MM)
Operating Profit Margin
Lowest at 9.6 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Fallen at -25.29%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
Raw Material Cost
Grown by 14.09% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
