Serco GroupSCGPY -21.43%81 ROA % is 4.02% as of Dec. 2025, which is 17% below its 10-year median of 4.86. 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 1,096 Business Services companies, Serco Group ranks better than 62.41% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Serco Group's annualizedNet Income for the quarter that ended in Dec. 2025 was $153 Mil.
Serco Group's average Total Assets over the quarter that ended in Dec. 2025 was $3,796 Mil. Therefore, Serco Group's annualized ROA % for the quarter that ended in Dec. 2025 was 4.02%.
The historical rank and industry rank for Serco Group's ROA % or its related term are showing as below:
SCGPY'
s ROA % Range Over the Past 10 Years
Min: -0.5 Med: 4.86 Max: 11.82
Current: 5.27
During the past 13 years, Serco Group's highest ROA % was 11.82%. The lowest was -0.50%. And the median was 4.86%.
SCGPY's ROA % is ranked better than 62.41% of 1096
companies
in the Business Services industry
Industry Median: 3.455
vs SCGPY: 5.27
Serco Group (OTCPK:SCGPY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Serco Group ROA % Related Terms
Serco Group ROA % Historical Data
* Premium members only.
The historical data trend for Serco Group's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's ROA % distribution charts can be found below:
* The bar in red indicates where Serco Group's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Serco Group (SCGPY) has a ROA % of 4.02% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Serco Group and its competitors. This is 17% below median its historical median of 4.86. According to the industry distribution chart, Serco Group ranks #412 out of 1096 companies in the Business Services industry, placing it in the top 37.6%.
Is Serco Group's ROA % too high?
Serco Group's current ROA % of 4.02% is 17% below median its 10-year median of 4.86. The Business Services industry median ROA % is 3.46. Serco Group's value of 4.02% is 16.4% above this industry median. Based on the distribution chart, Serco Group ranks #412 out of 1096 companies in the Business Services industry, which is above 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 ROA % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #412 out of 1096 companies for ROA %. This puts Serco Group in the upper half of its industry. The industry median ROA % is 3.46. Serco Group's value of 4.02% is 16.4% above this benchmark. While the company's 10-year median is 4.86 vs. the industry median of 3.46, Serco Group has consistently been above 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 ROA % for a Business Services company?
The median ROA % among Business Services companies is 3.46, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serco Group's current ROA % of 4.02% is 16.4% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Serco Group and its competitors. For the Business Services industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current ROA % is 4.02%, which is 17% below median its own 10-year median of 4.86. 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 ROA % of 4.02%. 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 ROA % is 4.02%, which is 17% below median its 10-year median of 4.86 and 16.4% above the Business Services industry median of 3.46. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Serco Group (SCGPY), the current ROA % is 4.02% 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:
ROA %: 4.02% (17% below median its 10-year median of 4.86)
GF Value™: $3.02 vs. price of $2.83 (6.4% below fair value)
Industry Position: 16.4% above the Business Services median (#412 of 1096)
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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