Government Services & Business Process Outsourcing
Strategic Profile
The company's business strategy centers on providing high-quality services with a customer-centric approach and significant emphasis on leveraging technology to enhance service delivery and increase efficiency. Serco demonstrates stable financial performance and a strong market position, indicating a potentially good investment opportunity for investors interested in long-term engagements in the service sector.
Cyborg Score Rationale
Serco demonstrates stable financial performance and strong market position as a public service provider. However, valuation concerns exist, and the company shows modest revenue growth at 2.50% with earnings per share of 0.05. The company maintains consistent dividend payments and operates in resilient government contracting markets.
Top Insights
Current market cap of $4.02B with 989M shares outstanding as of Feb 27, 2026.
Trailing 12-month revenue of $6.26B as of June 30, 2025, with 2026 forecasted revenue of approximately $5.2B.
Dividend yield of 2.5% estimated for 2025 with continuous payout history over the last 5 years.
Net income contracted significantly with recent periods showing net income decline from 202.4m to 44.2m despite relatively flat revenues.
Named Competitors
Engineering & Program Management — Government services and engineering contractor
IT & Business Services — Digital transformation and IT services provider
Defense & Government Services — Specialized systems integration and government contractor
Recent Developments
(Feb 2026) Stock price at 305.2 GBX with analyst average price target of 270 GBX
(Jan 2026) Improved net income to 88.6m GBP in latest half-year report with 321.5% increase vs prior period
(Dec 2025) Forecast EBITDA of 430MM and EBIT of 250MM for full year 2026
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