Serco GroupSECCF -6.20%79 ROE % is 12.98% as of Dec. 2025, which is 19% below its 10-year median of 16.12. GuruFocus rates SECCF with a GF Score™ of 79/100 and a GF Value™ of $2.66 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,058 Business Services companies, Serco Group ranks better than 76.28% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Serco Group's annualized net income for the quarter that ended in Dec. 2025 was $153 Mil. Serco Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $1,176 Mil. Therefore, Serco Group's annualized ROE % for the quarter that ended in Dec. 2025 was 12.98%.
The historical rank and industry rank for Serco Group's ROE % or its related term are showing as below:
SECCF'
s ROE % Range Over the Past 10 Years
Min: -2.51 Med: 16.12 Max: 35.34
Current: 16.88
During the past 13 years, Serco Group's highest ROE % was 35.34%. The lowest was -2.51%. And the median was 16.12%.
SECCF's ROE % is ranked better than 76.28% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs SECCF: 16.88
Serco Group (OTCPK:SECCF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Serco Group ROE % Related Terms
Serco Group ROE % Historical Data
* Premium members only.
The historical data trend for Serco Group's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's ROE % distribution charts can be found below:
* The bar in red indicates where Serco Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Serco Group (SECCF) has a ROE % of 12.98% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Serco Group and its competitors. This is 19% below median its historical median of 16.12. According to the industry distribution chart, Serco Group ranks #251 out of 1058 companies in the Business Services industry, placing it in the top 23.7%.
Is Serco Group's ROE % too high?
Serco Group's current ROE % of 12.98% is 19% below median its 10-year median of 16.12. The Business Services industry median ROE % is 8.10. Serco Group's value of 12.98% is 60.3% above this industry median. Based on the distribution chart, Serco Group ranks #251 out of 1058 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Serco Group has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Serco Group's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #251 out of 1058 companies for ROE %. This places Serco Group in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 8.10. Serco Group's value of 12.98% is 60.3% above this benchmark. While the company's 10-year median is 16.12 vs. the industry median of 8.10, 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 ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Serco Group's current ROE % of 12.98% is 60.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Serco Group and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current ROE % is 12.98%, which is 19% below median its own 10-year median of 16.12. 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 Modestly Overvalued. The stock's GF Value™ is $2.66, compared to a current price of $3.07 — trading 15.4% above its estimated fair value. The current ROE % is 12.98%, which is 19% below median its 10-year median of 16.12 and 60.3% above the Business Services industry median of 8.10. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Serco Group (SECCF), the current ROE % is 12.98% 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 15.4% above its estimated GF Value™ of $2.66.
GuruFocus considers Serco Group to be Modestly Overvalued.
Key valuation signals for SECCF:
ROE %: 12.98% (19% below median its 10-year median of 16.12)
GF Value™: $2.66 vs. price of $3.07 (15.4% above fair value)
Industry Position: 60.3% above the Business Services median (#251 of 1058)
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
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SECCF has been successfully added to your 
