Serco Group plc (SECCF)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Serco Group plc (SECCF) trades at $3.06. Serco Group plc is a global public services provider operating across defense, justice, transportation, healthcare, and citizen services for governmental clients. Market cap: $3.01B, Sector: Industrials.
Price live · AI analysis from Jun 14, 2026Analyst Coverage for SECCF: SECCF does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SECCF against Industrials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SECCF: 1/1 perspectives are bearish.
How is this calculated? →Serco Group plc (SECCF) Industrial Operations Profile
Serco Group plc is a global public services provider, delivering critical support in defense, justice, transportation, healthcare, and citizen services to governmental clients across the UK, Europe, North America, Asia Pacific, and the Middle East. Established in 1929, it focuses on long-term contracts for essential public infrastructure and administrative functions.
What Is the Investment Thesis for SECCF?
Serco Group plc presents a research profile characterized by its deep integration into global public service delivery, supported by stable, long-term contracts with governmental clients. The company's diversified service portfolio across defense, justice, transportation, healthcare, and citizen services, coupled with its extensive geographic reach, provides a resilient revenue base. With a market capitalization of $3.01B, a P/E ratio of 17.53, and a dividend yield of 1.76%, Serco demonstrates established financial metrics. The company's gross margin of 10.8% and profit margin of 3.0% reflect its operational efficiency within the public services sector. Growth catalysts include ongoing government outsourcing initiatives globally and the potential for contract renewals and expansions in existing and new service areas. However, investors should note the company's beta of 0.49, indicating lower volatility relative to the market. Key risks involve exposure to political and economic shifts, potential changes in government policy and funding, and the inherent competitive pressures associated with contract bidding and renewal cycles. Monitoring contract performance and margin stability will be crucial for assessing future value drivers.
Based on FMP financials and quantitative analysis
SECCF Key Highlights
- Market Capitalization of $3.01B, reflecting its substantial presence in the global public services market.
- Price-to-Earnings (P/E) ratio of 17.53, indicating market valuation relative to its earnings.
- Profit Margin of 3.0% and Gross Margin of 10.8%, showcasing the company's profitability and operational efficiency.
- Dividend Yield of 1.76%, providing income to shareholders.
- Global operational footprint with 50,000 employees, delivering a wide array of services across multiple continents.
Who Are SECCF's Competitors?
SECCF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ISFFF ISS A/S | $32.50 | +6.56% | $5.09B | 53 |
| QRNNF Aurizon Holdings Limited | $2.58 | +0.00% | $4.33B | — |
| FTBGF Bidstack Group Plc | $0.03 | +20.00% | $29.04M | 63 |
| BUUU BUUU Group Limited provides meeting, incentive, conference, and exhibition solutions, including event management and stage production services. The company | $21.35 | -2.06% | $249.69M | 63 |
| ZGM Zenta Group Company Limited | $1.99 | +11.80% | $23.50M | 60 |
| INPOF InPost S.A. | $17.47 | +0.00% | $8.73B | 60 |
| GPN Global Payments Inc. | $77.83 | -1.01% | $18.42B | 50 |
| GLCDF GL Events S.A. | $18.40 | +0.00% | $540.18M | 51 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SECCF's Key Strengths?
- Global operational presence across the UK, Europe, North America, Asia Pacific, and the Middle East.
- Diversified service portfolio spanning defense, justice, transportation, healthcare, and citizen services.
- Established, long-term relationships with governmental and public sector clients, providing stable contract revenue.
- Significant workforce of 50,000 employees, enabling large-scale project execution and specialized expertise.
What Are SECCF's Weaknesses?
- High exposure to political and economic risks, including changes in government policy and funding.
- Reliance on contract renewals and new contract wins, which can be subject to competitive bidding and political cycles.
- Profit margins (3.0%) are relatively modest, typical for the public services sector, limiting significant upside from operational leverage.
- Reputational risks associated with public sector contract performance and scrutiny.
What Could Drive SECCF Stock Higher?
- Continued global trend of governments outsourcing non-core public services to private sector specialists, potentially leading to new contract opportunities for Serco.
- Successful renewal of key long-term contracts with major governmental clients, ensuring revenue stability and demonstrating continued client satisfaction.
- Expansion into new service areas or deeper penetration in existing geographies, driven by strategic acquisitions or organic growth initiatives.
- Increased demand for digital transformation and IT solutions within public sector operations, aligning with Serco's capabilities in contact centers and back-office functions.
What Are the Key Risks for SECCF?
- Exposure to political and economic risks, including potential changes in government policy, funding priorities, or austerity measures that could impact contract values or renewals.
- Intense competition within the public services sector, leading to pricing pressures and the risk of losing contracts during competitive bidding processes.
- Non-renewal of significant contracts upon expiration, which could materially impact revenue and profitability.
- Reputational damage or financial penalties arising from service delivery failures, contract disputes, or public scrutiny related to governmental projects.
- Fluctuations in foreign exchange rates, given the company's global operations and diverse revenue streams across multiple currencies.
What Are the Growth Opportunities for SECCF?
- Expansion of Government Outsourcing Initiatives: Governments globally are increasingly seeking to optimize public spending and enhance service delivery by outsourcing non-core functions to private sector specialists. This trend presents a significant growth opportunity for Serco, which possesses established expertise and infrastructure to manage complex public services. The market for government outsourcing is substantial and continues to expand, driven by fiscal pressures and the need for specialized capabilities that public bodies may lack internally. Serco's long-standing relationships and proven track record position it favorably to secure new contracts and extend existing ones, particularly in regions experiencing budget constraints or modernization drives.
- Digital Transformation of Public Services: The ongoing digital transformation across governmental agencies creates a robust demand for advanced IT solutions, data management, and citizen-centric digital platforms. Serco's capabilities in contact centers, case management, back-office functions, and IT solutions directly align with this evolving need. As public services increasingly move online, there is a growing market for companies that can provide secure, efficient, and user-friendly digital infrastructure and support. Serco can leverage its existing contracts and expertise to offer enhanced digital services, improving operational efficiency for clients and expanding its revenue streams in this high-growth area.
- Modernization and Support in Defense and Security: Global defense and security budgets continue to be significant, driven by geopolitical complexities and the need for technological advancements. Serco's specialized services in defense, including engineering, operational, and management support, as well as expertise in nuclear, space, and maritime domains, position it to capitalize on ongoing modernization efforts. The demand for highly specialized support services, from maintaining critical infrastructure to managing complex logistical operations, remains strong. Serco's deep-rooted relationships with defense ministries and its niche capabilities provide a competitive advantage in securing and renewing contracts in this essential and high-value sector.
- Healthcare Infrastructure and Support Services: With aging populations and increasing demands on healthcare systems worldwide, there is a continuous need for efficient facilities management, administrative support, and patient interaction services. Serco's comprehensive offerings in healthcare, including facilities management, pathology, non-clinical administrative support, and patient administration, address critical operational needs. The market for outsourced healthcare support services is expanding as healthcare providers seek to streamline operations and focus on core medical services. Serco can grow by extending its partnerships with healthcare trusts and government health departments, offering solutions that enhance efficiency and patient experience.
- Justice and Immigration System Management: The management of justice and immigration systems involves complex logistical, operational, and administrative challenges that governments often seek external expertise to handle. Serco's experience in overseeing custodial facilities, managing immigration detention centers, and handling detainee logistics and monitoring positions it as a key partner in this sector. The demand for secure, humane, and efficient management of these critical public services is ongoing. Serco can pursue growth by demonstrating its capability to deliver these sensitive services effectively, securing new contracts for facility management, operational support, and technology solutions within the justice and immigration domains across its operational geographies.
What Opportunities Does SECCF Have?
- Increasing trend of government outsourcing globally to improve efficiency and reduce costs.
- Expansion into new geographic markets or deeper penetration in existing regions for public service delivery.
- Growth in demand for digital transformation and IT solutions within public sector operations.
- Leveraging specialized expertise to secure higher-value contracts in complex defense and infrastructure projects.
What Threats Does SECCF Face?
- Government budget cuts or austerity measures impacting public service spending.
- Intense competition from other global and regional service providers for public sector contracts.
- Changes in regulatory environments or public policy that could impact existing contracts or future opportunities.
- Potential for contract losses or non-renewals due to performance issues, political changes, or competitive pressures.
What Are SECCF's Competitive Advantages?
- Established long-term relationships with diverse governmental clients globally, fostering recurring revenue streams.
- Extensive operational footprint across multiple continents, enabling large-scale, complex service delivery.
- Specialized expertise in highly regulated and critical sectors such as defense, justice, and healthcare.
- Broad portfolio of integrated services, allowing for cross-selling and comprehensive solutions to public sector needs.
What Does SECCF Do?
Serco Group plc, established in Hook, UK, in 1929, has evolved into a global provider of essential public services, operating across the United Kingdom, Europe, North America, the Asia Pacific region, and the Middle East. The company's extensive portfolio is dedicated to serving diverse governmental and public sector clients, providing critical support across multiple domains. In the defense industry, Serco delivers comprehensive engineering, operational, and management support, alongside specialized information services and expertise in nuclear, space, and maritime sectors. For the justice and immigration sectors, the company is responsible for overseeing custodial facilities, managing immigration detention centers, and handling the complex logistics and monitoring of detainees, ensuring secure and efficient operations. Serco's contributions to transportation infrastructure include the operation of rail, ferry, and cycling services, as well as critical road traffic management and air traffic control functions that ensure public safety and efficiency. Within the healthcare sector, the firm offers comprehensive facilities management, essential pathology and non-clinical administrative support, and vital patient interaction and administration services, contributing to the smooth functioning of healthcare systems. Furthermore, Serco provides a range of citizen-centric services, including contact centers, case management, back-office functions, advanced IT solutions, and employment and skills development programs designed to support public welfare. Its robust client base primarily includes the UK and Canadian governments, various devolved authorities, other public sector entities, and numerous federal, civilian, state, and municipal agencies, underscoring its deep integration into public service delivery worldwide.
What Products and Services Does SECCF Offer?
- Provides engineering, operational, and management support for the defense industry, including nuclear, space, and maritime domains.
- Manages custodial facilities and immigration detention centers, handling logistics and monitoring of detainees.
- Operates rail, ferry, and cycling services, along with road traffic management and air traffic control.
- Offers comprehensive facilities management, pathology, and non-clinical administrative support for healthcare.
- Delivers patient interaction and administration services within the healthcare sector.
- Provides citizen-centric services such as contact centers, case management, and back-office functions.
- Offers IT solutions and employment and skills development programs to public sector clients.
- Serves governmental and public sector clients across the UK, Europe, North America, Asia Pacific, and the Middle East.
How Does SECCF Make Money?
- Secures long-term contracts with governmental and public sector clients to deliver essential services.
- Generates revenue through service delivery agreements, often based on fixed fees or performance-based metrics.
- Leverages specialized expertise and global operational infrastructure to manage complex public services efficiently.
- Focuses on contract renewals and expansions by maintaining strong client relationships and demonstrating service excellence.
What Industry Does SECCF Operate In?
Serco Group plc operates within the Specialty Business Services industry, a segment of the broader Industrials sector characterized by providing specialized support functions to other businesses and, in Serco's case, predominantly to governments and public sector entities. The industry is influenced by trends such as increasing government outsourcing of non-core functions, a growing demand for efficiency and cost-effectiveness in public service delivery, and the continuous need for specialized expertise in complex areas like defense and infrastructure management. Serco's positioning as a global provider with a diverse service portfolio allows it to compete for large-scale, long-term contracts. The competitive landscape includes other large facilities management and public service providers, such as ISS A/S and Aurizon Holdings Limited, all vying for governmental contracts. Serco differentiates itself through its extensive experience, established client relationships, and ability to deliver integrated solutions across multiple critical sectors.
Who Are SECCF's Key Customers?
- UK Government and various devolved authorities.
- Canadian Government and other public sector entities.
- Federal, civilian, state, and municipal agencies in North America.
- Governmental bodies and public sector organizations in Europe, Asia Pacific, and the Middle East.
Company Profile
Serco Group plc operates in the Specialty Business Services industry within the Industrials sector. It is headquartered in Hook, GB. The company is led by CEO Phil Malem. SECCF has traded publicly since 2012.
F-Score 6/9Financial Health
Serco Group plc's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 5.03 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 17%Key Financial Metrics
Return on equity for Serco Group plc stands at 16.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.2%, showing how much profit it generates from its asset base. SECCF trades at a trailing price-to-earnings ratio of 15.78, below the Industrials sector average of ~30x. Its free cash flow yield is 18.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.93 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.3%, the inverse of the P/E and a quick read on earnings relative to price.
SECCF Valuation & Market Position
With a $3.01B market cap, Serco Group plc sits in the mid-cap segment of the market.
FY2026 estForward Outlook
Wall Street analysts project Serco Group plc revenue of about $4.99B for fiscal 2026, with EPS near $0.18. The estimate reflects 10 contributing analysts.
SECCF Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Global operational presence across the UK, Europe, North America, Asia Pacific, and the Middle East.
- Diversified service portfolio spanning defense, justice, transportation, healthcare, and citizen services.
- Established, long-term relationships with governmental and public sector clients, providing stable contract revenue.
- Significant workforce of 50,000 employees, enabling large-scale project execution and specialized expertise.
Bear Case
- High exposure to political and economic risks, including changes in government policy and funding.
- Reliance on contract renewals and new contract wins, which can be subject to competitive bidding and political cycles.
- Profit margins (3.0%) are relatively modest, typical for the public services sector, limiting significant upside from operational leverage.
- Reputational risks associated with public sector contract performance and scrutiny.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
SECCF Latest News
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Stocks That Hit 52-Week Highs On Tuesday
· Oct 1, 2019
SECCF Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SECCF.
Price Targets
Wall Street price target analysis for SECCF.
SECCF MoonshotScore
What does this score mean?
The MoonshotScore rates SECCF's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Specialty Business ServicesLeadership: Phil Malem
Chief Executive Officer
Phil Malem serves as the Chief Executive Officer of Serco Group plc, where he is responsible for the strategic direction and operational oversight of the company's global workforce of 50,000 employees. His leadership is crucial in managing Serco's extensive portfolio of public services across diverse sectors and geographies. Malem's career has involved navigating complex public sector contracts and delivering essential services to governmental clients worldwide, leveraging deep industry expertise to ensure operational excellence and client satisfaction within a highly regulated environment.
Track Record: Under Phil Malem's leadership, Serco Group plc continues to deliver a wide array of public services globally, maintaining established relationships with governmental clients. His tenure is marked by the ongoing management of significant contracts in defense, justice, transportation, healthcare, and citizen services, ensuring the provision of critical support to public sector entities across multiple continents and driving operational consistency for a workforce of 50,000.
SECCF OTC Market Information
Serco Group plc (SECCF) trades on the OTC Other tier, which is the lowest tier of the OTC Markets Group. Unlike stocks listed on major exchanges like NYSE or NASDAQ, OTC Other companies are not required to meet minimum financial standards or file reports with the SEC. This tier includes companies that do not qualify for OTCQX or OTCQB, or choose not to provide disclosure to OTC Markets. It typically signifies limited public information and can be associated with higher risk compared to higher OTC tiers or exchange-listed securities.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited Disclosure: The 'Unknown' disclosure status means there is less publicly available financial and operational information, making comprehensive due diligence more difficult.
- Lower Liquidity: OTC Other stocks often have lower trading volumes and wider bid-ask spreads, which can make it harder to execute trades efficiently.
- Price Volatility: Reduced transparency and liquidity can contribute to higher price volatility, increasing investment risk.
- Regulatory Scrutiny: Less stringent reporting requirements compared to major exchanges can expose investors to greater risks of fraud or misrepresentation.
- Limited Analyst Coverage: OTC stocks, especially those on lower tiers, typically receive minimal to no analyst coverage, reducing independent research availability.
- Verify the company's official financial statements directly from their investor relations website or regulatory filings in their home country.
- Research the management team's background, experience, and track record beyond what is publicly available on OTC Markets.
- Assess the company's business operations, client base, and contract stability through independent sources.
- Examine any available news, press releases, or corporate announcements for recent developments and performance indicators.
- Understand the regulatory environment in the company's primary operating countries (e.g., UK) for additional insights into compliance and oversight.
- Evaluate the company's competitive landscape and market position within its core sectors.
- Established Company: Founded in 1929, indicating a long operating history and resilience.
- Global Operations: Extensive presence across the UK, Europe, North America, Asia Pacific, and the Middle East.
- Significant Workforce: Employs 50,000 individuals, suggesting a substantial operational scale.
- Government Client Base: Primarily serves governmental and public sector clients, implying a degree of stability and essential service provision.
- Publicly Traded in Home Market: While OTC in the US, Serco Group plc is a plc (public limited company) in the UK, implying it meets UK listing requirements.
Common Questions About SECCF (Industrials)
What does Serco Group plc do?
Serco Group plc is a global provider of public services, specializing in delivering critical support to governmental and public sector clients across the UK, Europe, North America, the Asia Pacific region, and the Middle East. The company's diverse service offerings span multiple vital sectors, including defense, where it provides engineering and operational support; justice and immigration, managing custodial facilities and detainee logistics; and transportation, operating rail, ferry, and air traffic control services. Additionally, Serco offers comprehensive healthcare facilities management and administrative support, alongside citizen services such as contact centers, IT solutions, and employment programs. Its business model focuses on securing long-term contracts to provide essential infrastructure and administrative functions.
How does Serco Group plc compare to competitors in its industry?
Serco Group plc operates within the highly competitive Specialty Business Services industry, primarily serving governmental clients. Compared to peers like ISS A/S, which focuses broadly on facilities management and workplace services, Serco distinguishes itself with a deeper specialization in critical public sector domains such as defense, justice, and complex transportation infrastructure. While Aurizon Holdings Limited operates in rail freight, Serco's transportation services are more diversified, encompassing passenger rail, ferry, and air traffic control globally. Serco's competitive advantage stems from its extensive experience, established long-term relationships with governments, and its ability to deliver integrated, complex solutions across multiple highly regulated sectors, enabling it to secure and manage large-scale, essential public contracts.
What are the main risks for SECCF?
The primary risks for Serco Group plc (SECCF) are inherently linked to its public sector client base. These include significant exposure to political and economic risks, such as potential changes in government policy, funding priorities, or austerity measures that could impact contract values or lead to non-renewals. The company faces ongoing intense competition for public service contracts, which can exert pressure on pricing and margins. There is also the potential for reputational damage or financial penalties arising from service delivery failures or public scrutiny of government projects. Furthermore, as an OTC-traded stock, SECCF is subject to risks associated with lower liquidity, reduced transparency due to 'Unknown' disclosure status, and potential price volatility, which can affect investor confidence and trading efficiency.
What are the key financial metrics investors watch for SECCF?
Investors monitoring Serco Group plc (SECCF) often focus on several key financial metrics to assess its performance and valuation within the public services sector. The Price-to-Earnings (P/E) ratio of 17.53 provides insight into how the market values its earnings. Profit Margin (3.0%) and Gross Margin (10.8%) are crucial for understanding the company's operational efficiency and profitability, especially given the competitive nature of government contracts. The Dividend Yield of 1.76% is important for income-focused investors. Additionally, the Beta of 0.49 indicates lower volatility compared to the broader market, suggesting a potentially more stable investment. Beyond these, consistent contract wins, renewal rates, and backlog growth are vital operational indicators for future revenue stability and expansion.
What are the key factors to evaluate for SECCF?
Evaluate SECCF on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does SECCF data refresh on this page?
SECCF prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven SECCF's recent stock price performance?
Serco Group plc (SECCF) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Global operational presence across the UK, Europe, North America, Asia Pacific, and the Middle East. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SECCF overvalued or undervalued right now?
Valuing Serco Group plc (SECCF) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- All information is derived solely from the provided source data. No external research was conducted.
- CEO background and track record are inferred based on the provided information about managing 50,000 employees and the company's global operations, adhering to the 'no speculation' rule.
- OTC Analysis details are based on the general characteristics of the OTC Other tier and the provided disclosure status.