Serco Group plc (SCGPY)
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 (SCGPY) trades at $4.00. Serco Group plc is a global provider of public services, operating in sectors such as defense, justice, transport, health, and citizen services. Market cap: $3.94B, Sector: Industrials.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for SCGPY: SCGPY 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 SCGPY against Industrials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SCGPY: 1/1 perspectives are bearish.
How is this calculated? →Serco Group plc (SCGPY) Industrial Operations Profile
Serco Group plc, founded in 1929, delivers essential public services globally, focusing on defense, justice, transport, health, and citizen services. With 50,000 employees, Serco leverages its expertise in operational support, engineering, and management to serve governments and public sector clients across diverse geographic regions.
What Is the Investment Thesis for SCGPY?
Serco Group plc presents a compelling investment case based on its established position in the public services sector and its diversified service offerings. The company's consistent profitability, indicated by a 3.0% profit margin, and its broad geographic reach across the UK, Europe, North America, Asia Pacific, and the Middle East, provides stability. The company's beta of 0.51 suggests lower volatility compared to the market. Growth catalysts include the increasing demand for outsourced public services and Serco's ability to secure and renew government contracts. A potential risk factor is the reliance on government contracts, which can be subject to political and economic changes. Investors should monitor Serco's ability to maintain its competitive edge and adapt to evolving public sector needs.
Based on FMP financials and quantitative analysis
SCGPY Key Highlights
- Market capitalization of $3.94B reflects Serco's significant presence in the public services sector.
- P/E ratio of 22.07 indicates investor expectations for future earnings growth.
- Profit margin of 3.0% demonstrates Serco's ability to generate profits from its operations.
- Gross margin of 10.8% shows the profitability of Serco's services after accounting for direct costs.
- Dividend yield of 1.10% provides a modest income stream for investors.
Who Are SCGPY's Competitors?
SCGPY 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 |
| JSGRY LIXIL Corporation | $23.00 | +6.24% | $3.31B | 46 |
| MITFF Mitie Group plc | $2.03 | +0.50% | $2.53B | 49 |
| MITFY Mitie Group plc | $8.44 | +3.57% | $2.67B | — |
| NCTKY Nabtesco Corporation | $18.75 | +15.11% | $4.40B | — |
| 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 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SCGPY's Key Strengths?
- Diversified service offerings across multiple sectors.
- Global presence and geographic reach.
- Established relationships with government clients.
- Strong track record of contract renewals.
What Are SCGPY's Weaknesses?
- Reliance on government contracts, which can be subject to political and economic changes.
- Exposure to currency fluctuations.
- Potential for cost overruns on large projects.
- Dependence on subcontractors and partners.
What Could Drive SCGPY Stock Higher?
- Continued government outsourcing of public services creates opportunities for new contracts and renewals.
- Focus on technology solutions and digital transformation enhances service delivery and efficiency.
- Potential strategic acquisitions to expand service portfolio and geographic reach.
- Growing demand for defense and security services drives revenue growth.
- Expansion of citizen services offerings to meet increasing demand for efficient public services.
What Are the Key Risks for SCGPY?
- Reliance on government contracts, which can be subject to political and economic changes.
- Exposure to currency fluctuations can impact financial results.
- Potential for cost overruns on large projects.
- Intense competition from other public service providers.
- Reputational risks associated with service failures or ethical concerns.
What Are the Growth Opportunities for SCGPY?
- Expansion in North America: Serco has significant opportunities to expand its presence in the North American market by securing additional contracts with federal, state, and municipal governments. The increasing trend of outsourcing public services in the US and Canada, driven by cost pressures and efficiency demands, presents a substantial growth opportunity for Serco. This expansion could increase revenue by an estimated 10-15% over the next 3-5 years.
- Increased Focus on Technology Solutions: Serco can leverage technology to enhance its service offerings and improve efficiency. Investing in digital solutions, such as cloud-based platforms, data analytics, and automation, can enable Serco to deliver more effective and cost-efficient services to its clients. This strategic focus could lead to a 5-8% increase in profit margins over the next 2-4 years.
- Strategic Acquisitions: Serco can pursue strategic acquisitions to expand its service portfolio and geographic reach. Acquiring companies with complementary capabilities or access to new markets can accelerate Serco's growth and strengthen its competitive position. Identifying and integrating suitable acquisition targets could add 15-20% to Serco's revenue base over the next 5 years.
- Growing Demand for Defense Services: With increasing global security concerns, Serco is well-positioned to capitalize on the growing demand for defense-related services. Providing base and operational support, engineering, and management services to defense agencies can drive significant revenue growth. This sector is expected to grow by 6-8% annually over the next 3-5 years, offering substantial opportunities for Serco.
- Citizen Services and Contact Centers: Serco can expand its citizen services offerings, including contact centers and case management, to meet the increasing demand for efficient and accessible public services. Governments are seeking to improve citizen engagement and streamline service delivery, creating opportunities for Serco to provide innovative solutions. This expansion could result in a 7-10% increase in revenue over the next 3 years.
What Opportunities Does SCGPY Have?
- Expansion in North America and other high-growth markets.
- Increased focus on technology solutions and digital transformation.
- Strategic acquisitions to expand service portfolio and geographic reach.
- Growing demand for defense and security services.
What Threats Does SCGPY Face?
- Intense competition from other public service providers.
- Changes in government policies and priorities.
- Economic downturns and budget cuts.
- Reputational risks associated with service failures or ethical concerns.
What Are SCGPY's Competitive Advantages?
- Established relationships with government clients.
- Diversified service offerings across multiple sectors.
- Global presence and geographic reach.
- Expertise in delivering complex public services.
- Strong track record of contract renewals.
What Does SCGPY Do?
Serco Group plc, established in 1929, has evolved into a multinational corporation specializing in the delivery of public services. Initially focused on cinema management, Serco transitioned to providing technical and management services for government and commercial clients. Today, the company operates across the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. Serco's core offerings encompass a wide array of services, including base and operational support engineering, management and information services, and specialized solutions for the defense, justice, transport, and health sectors. In the defense sector, Serco provides critical support services such as nuclear, space, and maritime solutions. For the justice and immigration sectors, Serco manages custodial services, immigration detention centers, and detainee transport and monitoring programs. The company also delivers transportation solutions, including rail, ferry, and cycle operations, road traffic management, and air traffic control services. In the health sector, Serco offers integrated facilities management, pathology and non-clinical support, and patient administration and contact services. Additionally, Serco provides citizen services, including contact centers, case management, and employment and skills programs. Serco serves a diverse clientele, including the United Kingdom and Canadian governments, devolved authorities, public sector customers, federal and civilian agencies, and various state and municipal governments. With a global workforce of 50,000 employees, Serco is committed to delivering high-quality, cost-effective public services that support the communities it serves.
What Products and Services Does SCGPY Offer?
- Provides base and operational support engineering services.
- Offers management and information services.
- Delivers nuclear, space, and maritime services for the defense sector.
- Manages custodial services, immigration detention, and detainee transport.
- Provides rail, ferry, and cycle operations.
- Offers road traffic management and air traffic control services.
- Delivers integrated facilities management, pathology, and non-clinical support for the health sector.
- Provides citizen services, including contact centers and case management.
How Does SCGPY Make Money?
- Serco generates revenue through contracts with governments and public sector organizations.
- The company provides a range of services, including defense, justice, transport, health, and citizen services.
- Serco focuses on delivering high-quality, cost-effective solutions to its clients.
- The company operates in multiple geographic regions, including the UK, Europe, North America, Asia Pacific, and the Middle East.
What Industry Does SCGPY Operate In?
Serco Group plc operates within the specialty business services industry, which is characterized by increasing demand for outsourced public services. The global market for business services is projected to grow steadily, driven by the need for cost-effective and efficient solutions. Serco competes with companies such as ISFFF (ISS A/S), JSGRY (Japan Security System Co Ltd), MITFF (Mitsui Fudosan Co Ltd), MITFY (Mitsui Fudosan Co Ltd), and NCTKY (Nippon Concept Corp), all vying for government and public sector contracts. Serco's diversified service offerings and global presence position it favorably within this competitive landscape.
Who Are SCGPY's Key Customers?
- United Kingdom government and devolved authorities.
- Canadian government.
- Federal and civilian agencies.
- Various state and municipal governments.
- Other public sector customers.
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. SCGPY has traded publicly since 2010.
How Serco Group plc Is Valued
Serco Group plc carries a market capitalization of $3.94B, placing it in the mid-cap category.
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. SCGPY 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.
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 4.83 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Serco Group plc revenue of about $5.04B for fiscal 2026, with EPS near $0.00. The estimate reflects 10 contributing analysts.
SCGPY Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Serco's government contracts provide a stable revenue stream, making it a reliable choice in uncertain times. Think of it like Lockheed Martin, but for public services.
- Recent insider buying activity suggests confidence in the company's future performance. Insiders often have the best view of the company's prospects.
- Community sentiment shows growing optimism about Serco's ability to secure new contracts and expand its service offerings. Positive buzz can fuel momentum.
- Serco's involvement in essential services means it's less susceptible to economic downturns. Like utilities, its services are always needed.
Bear Case
- Increased competition in the outsourcing market could squeeze Serco's profit margins. It's a crowded space with aggressive players.
- Negative community sentiment regarding service quality could damage Serco's reputation and future contract bids. Perception is reality in the market.
- Dependence on government contracts makes Serco vulnerable to political changes and budget cuts. Government priorities can shift quickly.
- Recent market perception indicates concerns about Serco's ability to maintain its growth rate. The market is always forward-looking.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SCGPY Latest News
-
Stocks That Hit 52-Week Highs On Tuesday
· Dec 16, 2019
SCGPY Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SCGPY.
Price Targets
Wall Street price target analysis for SCGPY.
SCGPY MoonshotScore
What does this score mean?
The MoonshotScore rates SCGPY'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
CEO
Phil Malem is the Chief Executive Officer of Serco Group plc. His background includes extensive experience in managing large organizations and delivering complex public services. He has a proven track record of driving growth and improving operational efficiency. Malem's leadership is focused on strengthening Serco's position as a leading provider of public services globally.
Track Record: Under Phil Malem's leadership, Serco has focused on strategic growth initiatives and operational improvements. Key achievements include securing significant contract renewals and expanding the company's presence in key markets. Malem has also emphasized innovation and technology adoption to enhance service delivery and drive efficiency.
Serco Group plc ADR Information Unsponsored
An American Depositary Receipt (ADR) is a certificate representing shares of a foreign company that trades on U.S. stock exchanges. SCGPY is traded as an ADR, allowing U.S. investors to invest in Serco Group plc without the complexities of cross-border transactions. Each SCGPY ADR represents a specific number of Serco Group plc's ordinary shares traded on its home market.
- Home Market Ticker: London Stock Exchange (LSE), United Kingdom
- ADR Level: 1
- ADR Ratio: 1:1
- Home Market Ticker: SCGP
SCGPY OTC Market Information
The OTC Other tier represents the lowest tier of the over-the-counter (OTC) market, indicating that SCGPY may not meet the minimum financial standards or reporting requirements of higher tiers like OTCQX or OTCQB, or major exchanges like NYSE/NASDAQ. Companies on this tier often have limited operating history, minimal assets, or may be undergoing financial distress. Investing in companies on the OTC Other tier carries significant risks due to the lack of regulatory oversight and transparency.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited regulatory oversight and transparency.
- Low trading volume and liquidity.
- Potential for price manipulation and volatility.
- Higher risk of fraud or financial distress.
- Limited access to company information and financial reports.
- Verify the company's registration and legal status.
- Obtain and review the company's financial statements (if available).
- Assess the company's business model and competitive landscape.
- Evaluate the company's management team and track record.
- Research any legal or regulatory issues involving the company.
- Consult with a financial advisor or legal professional.
- Understand the risks associated with investing in OTC stocks.
- Established operating history and track record.
- Audited financial statements (if available).
- Independent board of directors or advisors.
- Positive media coverage or industry recognition.
- Clear and transparent communication with investors.
SCGPY Industrials Stock FAQ
What does Serco Group plc do?
Serco Group plc is a global provider of public services, operating in sectors such as defense, justice, transport, health, and citizen services. The company delivers essential services to governments and public sector organizations across the UK, Europe, North America, Asia Pacific, and the Middle East. Serco's services include operational support, engineering, management, and information technology solutions, tailored to meet the specific needs of its clients.
What do analysts say about SCGPY stock?
Analyst consensus on SCGPY reflects a neutral outlook, acknowledging the company's established position in the public services sector and its diversified service offerings. Key valuation metrics, such as the P/E ratio of 22.07, suggest investor expectations for future earnings growth. Growth considerations include the increasing demand for outsourced public services and Serco's ability to secure and renew government contracts. However, analysts also note the potential risks associated with reliance on government contracts and exposure to currency fluctuations.
What are the main risks for SCGPY?
The main risks for Serco Group plc include its reliance on government contracts, which can be subject to political and economic changes. Exposure to currency fluctuations can also impact financial results. Potential for cost overruns on large projects and intense competition from other public service providers are additional risks. Reputational risks associated with service failures or ethical concerns can also pose a threat to Serco's business.
What are the key factors to evaluate for SCGPY?
Evaluate SCGPY on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does SCGPY data refresh on this page?
SCGPY 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 SCGPY's recent stock price performance?
Serco Group plc (SCGPY) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified service offerings across multiple sectors. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SCGPY overvalued or undervalued right now?
Valuing Serco Group plc (SCGPY) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying SCGPY?
Before investing in Serco Group plc (SCGPY), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
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.
- Financial data and market information are based on available sources and may be subject to change.
- AI analysis is pending and may provide additional insights.