Serco GroupSECCF -6.20%79 Interest Coverage is 3.68 as of Dec. 2025, which is 37% below its 10-year median of 5.84. 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 812 Business Services companies, Serco Group ranks worse than 70.32% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Serco Group's
Operating Income
for the
six
months ended in Dec. 2025 was $126 Mil. Serco Group's Interest Expense for the
six
months ended in Dec. 2025 was $-34 Mil.
Serco Group's interest coverage for the quarter that ended in Dec. 2025 was 3.68.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Serco Group's Interest Coverage or its related term are showing as below:
SECCF'
s Interest Coverage Range Over the Past 10 Years
Min: 1.45 Med: 5.84 Max: 8.99
Current: 4.53
SECCF's Interest Coverage is ranked worse than 70.32% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs SECCF: 4.53
Serco Group (OTCPK:SECCF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Serco Group Interest Coverage Related Terms
Serco Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Serco Group's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SECCF vs CTAS, CPRT, GPN: Interest Coverage Comparison
For the Specialty Business Services subindustry, Serco Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Serco Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Serco Group (SECCF) has a Interest Coverage of 3.68 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Serco Group and its competitors. This is 37% below median its historical median of 5.84. Over the past decade, Serco Group's Interest Coverage has ranged from 1.45 to 8.99. According to the industry distribution chart, Serco Group ranks #571 out of 812 companies in the Business Services industry, placing it in the top 70.3%.
Is Serco Group's Interest Coverage too high?
Serco Group's current Interest Coverage of 3.68 is 37% below median its 10-year median of 5.84. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 8.99. The Business Services industry median Interest Coverage is 12.98. Serco Group's value of 3.68 is 71.6% below this industry median. Based on the distribution chart, Serco Group ranks #571 out of 812 companies in the Business Services industry, which is below the industry midpoint. 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 Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #571 out of 812 companies for Interest Coverage. This places Serco Group in the lower half of its industry. The industry median Interest Coverage is 12.98. Serco Group's value of 3.68 is 71.6% below this benchmark. Historically, Serco Group's own Interest Coverage has ranged from 1.45 to 8.99 over the past decade. While the company's 10-year median is 5.84 vs. the industry median of 12.98, 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 Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serco Group's current Interest Coverage of 3.68 is 71.6% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Serco Group and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current Interest Coverage is 3.68, which is 37% below median its own 10-year median of 5.84. 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 Interest Coverage is 3.68, which is 37% below median its 10-year median of 5.84 and 71.6% below the Business Services industry median of 12.98. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Serco Group (SECCF), the current Interest Coverage is 3.68 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:
Interest Coverage: 3.68 (37% below median its 10-year median of 5.84)
GF Value™: $2.78 vs. price of $3.07 (10.4% above fair value)
Industry Position: 71.6% below the Business Services median (#571 of 812)
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
Get the complete analysis for SECCF
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