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 6.64% and Operating profit at 14.81%
4
Flat results in Jun 25
- DEBT-EQUITY RATIO (HY) Highest at 89.91 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.19%
5
With ROE of 18.93%, it has a very expensive valuation with a 2.78 Price to Book Value
- Over the past year, while the stock has generated a return of 70.65%, its profits have risen by 19.4% ; the PEG ratio of the company is 0.6
6
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
7
Market Beating performance in long term as well as near term
- Along with generating 70.65% returns in the last 1 year, the stock has outperformed FTSE 100 in the last 3 years, 1 year and 3 months
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
70.65%
2.40
21.88%
FTSE 100
15.94%
1.23
12.99%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.64%
EBIT Growth (5y)
14.81%
EBIT to Interest (avg)
9.58
Debt to EBITDA (avg)
0.60
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
3.29
Tax Ratio
70.75%
Dividend Payout Ratio
99.76%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
23.24%
ROE (avg)
19.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
2.78
EV to EBIT
9.26
EV to EBITDA
5.51
EV to Capital Employed
2.18
EV to Sales
0.58
PEG Ratio
0.56
Dividend Yield
1.81%
ROCE (Latest)
23.58%
ROE (Latest)
18.93%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 794.9 MM
RAW MATERIAL COST(Y)
Fallen by -55.88% (YoY
OPERATING PROFIT(Q)
Highest at GBP 273.4 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.09 %
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 89.91 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.19%
Here's what is working for Serco Group Plc
Operating Cash Flow
Highest at GBP 794.9 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)
Operating Profit
Highest at GBP 273.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Operating Profit Margin
Highest at 11.09 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -55.88% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at GBP 106.4 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
Debt-Equity Ratio
Highest at 89.91 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 7.19%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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