Serco GroupSCGPY -21.43%81 Pretax Margin % is 3.64% as of Dec. 2025, which is 11% above its 10-year median of 3.28. GuruFocus rates SCGPY with a GF Score™ of 81/100 and a GF Value™ of $3.02. The stock has 3 warning signs investors should review. Among 1,074 Business Services companies, Serco Group ranks worse than 55.12% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Serco Group's Pre-Tax Income for the
six
months ended in Dec. 2025 was $120 Mil. Serco Group's Revenue for the
six
months ended in Dec. 2025 was $3,291 Mil. Therefore, Serco Group's pretax margin for the quarter that ended in Dec. 2025 was 3.64%.
The historical rank and industry rank for Serco Group's Pretax Margin % or its related term are showing as below:
SCGPY'
s Pretax Margin % Range Over the Past 10 Years
Min: 0.36 Med: 3.28 Max: 5.07
Current: 4.13
SCGPY's Pretax Margin % is ranked worse than 55.12% of 1074
companies
in the Business Services industry
Industry Median: 5.35
vs SCGPY: 4.13
Serco Group (OTCPK:SCGPY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Serco Group Pretax Margin % Related Terms
Serco Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Serco Group's Pretax 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.
SCGPY vs CTAS, CPRT, GPN: Pretax Margin % Comparison
For the Specialty Business Services subindustry, Serco Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Serco Group's Pretax 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 (SCGPY) has a Pretax Margin % of 3.64% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Serco Group and its competitors. This is 11% above median its historical median of 3.28. Over the past decade, Serco Group's Pretax Margin % has ranged from 0.36 to 5.07. 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 Pretax Margin % too high?
Serco Group's current Pretax Margin % of 3.64% is 11% above median its 10-year median of 3.28. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 5.07. The Business Services industry median Pretax Margin % is 5.35. Serco Group's value of 3.64% is 32% 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 81/100, reflecting its overall financial health beyond just this single metric.
How does Serco Group's Pretax Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #592 out of 1074 companies for Pretax Margin %. This places Serco Group in the lower half of its industry. The industry median Pretax Margin % is 5.35. Serco Group's value of 3.64% is 32% below this benchmark. Historically, Serco Group's own Pretax Margin % has ranged from 0.36 to 5.07 over the past decade. While the company's 10-year median is 3.28 vs. the industry median of 5.35, 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 Pretax Margin % for a Business Services company?
The median Pretax Margin % among Business Services companies is 5.35, based on 1,074 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serco Group's current Pretax Margin % of 3.64% is 32% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Serco Group and its competitors. For the Business Services industry, the median Pretax Margin % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current Pretax Margin % is 3.64%, which is 11% above median its own 10-year median of 3.28. 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?
Serco Group (SCGPY) has a current Pretax Margin % of 3.64%. The stock's GF Value™ is $3.02, compared to a current price of $2.83 — trading 6.4% below its estimated fair value. The current Pretax Margin % is 3.64%, which is 11% above median its 10-year median of 3.28 and 32% below the Business Services industry median of 5.35. Serco Group's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Serco Group (SCGPY), the current Pretax Margin % is 3.64% 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 (SCGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Serco Group stock appears to be undervalued.
The current stock price of $2.83 is trading 6.4% below its estimated GF Value™ of $3.02.
Key valuation signals for SCGPY:
Pretax Margin %: 3.64% (11% above median its 10-year median of 3.28)
GF Value™: $3.02 vs. price of $2.83 (6.4% below fair value)
Industry Position: 32% below the Business Services median (#592 of 1074)
No single metric tells the full story. See the SCGPY 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.
81GF Score
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