Serco GroupSECCF -6.20%79 Gross Margin % is 10.03% as of Dec. 2025, which is 2% below its 10-year median of 10.20. GuruFocus rates SECCF with a GF Score™ of 79/100 and a GF Value™ of $2.78 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,007 Business Services companies, Serco Group ranks worse than 91.16% on this metric.
The historical rank and industry rank for Serco Group's Gross Margin % or its related term are showing as below:
SECCF'
s Gross Margin % Range Over the Past 10 Years
Min: 8.14 Med: 10.2 Max: 10.88
Current: 10.52
During the past 13 years, the highestGross Margin % of Serco Group was 10.88%. The lowest was 8.14%. And the median was 10.20%.
SECCF's Gross Margin % is ranked worse than 91.16% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs SECCF: 10.52
Serco Group had a gross margin of 10.03% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Serco Group was 0.90% per year.
Serco Group (OTCPK:SECCF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Serco Group had a gross margin of 10.03% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Serco Group Gross Margin % Related Terms
Serco Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Serco Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SECCF vs CTAS, CPRT, GPN: Gross Margin % Comparison
For the Specialty Business Services subindustry, Serco Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Serco Group Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Serco Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Serco Group (SECCF) has a Gross Margin % of 10.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Serco Group and its competitors. This is near median its historical median of 10.20. Over the past decade, Serco Group's Gross Margin % has ranged from 8.14 to 10.88. According to the industry distribution chart, Serco Group ranks #918 out of 1007 companies in the Business Services industry, placing it in the top 91.2%.
Is Serco Group's Gross Margin % too high?
Serco Group's current Gross Margin % of 10.03% is near median its 10-year median of 10.20. Over the past 10 years, this metric has ranged from a low of 8.14 to a high of 10.88. The Business Services industry median Gross Margin % is 34.46. Serco Group's value of 10.03% is 70.9% below this industry median. Based on the distribution chart, Serco Group ranks #918 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Serco Group has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Serco Group's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #918 out of 1007 companies for Gross Margin %. This places Serco Group in the lower half of its industry. The industry median Gross Margin % is 34.46. Serco Group's value of 10.03% is 70.9% below this benchmark. Historically, Serco Group's own Gross Margin % has ranged from 8.14 to 10.88 over the past decade. While the company's 10-year median is 10.20 vs. the industry median of 34.46, Serco Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serco Group's current Gross Margin % of 10.03% is 70.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Serco Group and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current Gross Margin % is 10.03%, which is near median its own 10-year median of 10.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serco Group stock overvalued right now?
Based on GuruFocus' analysis, Serco Group (SECCF) is currently considered Fairly Valued. The stock's GF Value™ is $2.78, compared to a current price of $3.07 — trading 10.4% above its estimated fair value. The current Gross Margin % is 10.03%, which is near median its 10-year median of 10.20 and 70.9% below the Business Services industry median of 34.46. Serco Group's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Serco Group (SECCF), the current Gross Margin % is 10.03% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Serco Group (SECCF) Overvalued in 2026?
Based on GuruFocus' analysis, Serco Group stock appears to be overvalued.
The current stock price of $3.07 is trading 10.4% above its estimated GF Value™ of $2.78.
GuruFocus considers Serco Group to be Fairly Valued.
Key valuation signals for SECCF:
Gross Margin %: 10.03% (near median its 10-year median of 10.20)
GF Value™: $2.78 vs. price of $3.07 (10.4% above fair value)
Industry Position: 70.9% below the Business Services median (#918 of 1007)
No single metric tells the full story. See the SECCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serco Group PLC helps governments and public-sector bodies deliver public services. The company generates revenue from four divisions; the UK & Europe division provides hospital management, welfare, business support operations, and defense services in the U.K. and Europe. The North America division provides professional, defense, technology, and management services to the U.S. and Canadian governments. The Asia-Pacific segment provides frontline services, defense, and citizen services in Australia, New Zealand, and Hong Kong. The Middle East division provides transport, defense, and health services in the Middle East. The company generates its key revenue from the U.K. & Europe divisions.
79GF Score
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