Serco GroupSECCF -6.20%79 Net Margin % is 2.32% as of Dec. 2025, which is 14% below its 10-year median of 2.69. 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 1,074 Business Services companies, Serco Group ranks worse than 55.12% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Serco Group's Net Income for the
six
months ended in Dec. 2025 was $76 Mil. Serco Group's Revenue for the
six
months ended in Dec. 2025 was $3,291 Mil. Therefore, Serco Group's net margin for the quarter that ended in Dec. 2025 was 2.32%.
The historical rank and industry rank for Serco Group's Net Margin % or its related term are showing as below:
SECCF'
s Net Margin % Range Over the Past 10 Years
Min: -0.28 Med: 2.69 Max: 6.87
Current: 2.99
SECCF's Net Margin % is ranked worse than 55.12% of 1074
companies
in the Business Services industry
Industry Median: 3.83
vs SECCF: 2.99
Serco Group (OTCPK:SECCF) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Serco Group Net Margin % Related Terms
Serco Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Serco Group's Net 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.
For the Specialty Business Services subindustry, Serco Group's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Serco Group's Net 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.
Serco Group (SECCF) has a Net Margin % of 2.32% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Serco Group and its competitors. This is 14% below median its historical median of 2.69. According to the industry distribution chart, Serco Group ranks #592 out of 1074 companies in the Business Services industry, placing it in the top 55.1%.
Is Serco Group's Net Margin % too high?
Serco Group's current Net Margin % of 2.32% is 14% below median its 10-year median of 2.69. The Business Services industry median Net Margin % is 3.83. Serco Group's value of 2.32% is 39.4% below this industry median. Based on the distribution chart, Serco Group ranks #592 out of 1074 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 Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #592 out of 1074 companies for Net Margin %. This places Serco Group in the lower half of its industry. The industry median Net Margin % is 3.83. Serco Group's value of 2.32% is 39.4% below this benchmark. While the company's 10-year median is 2.69 vs. the industry median of 3.83, 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 Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 3.83, based on 1,074 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serco Group's current Net Margin % of 2.32% is 39.4% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Serco Group and its competitors. For the Business Services industry, the median Net Margin % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current Net Margin % is 2.32%, which is 14% below median its own 10-year median of 2.69. 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 Net Margin % is 2.32%, which is 14% below median its 10-year median of 2.69 and 39.4% below the Business Services industry median of 3.83. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Serco Group (SECCF), the current Net Margin % is 2.32% 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:
Net Margin %: 2.32% (14% below median its 10-year median of 2.69)
GF Value™: $2.78 vs. price of $3.07 (10.4% above fair value)
Industry Position: 39.4% below the Business Services median (#592 of 1074)
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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