Serco Group Plc (SRP:LN) Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Business Description and Key Statistics Serco Group is a provider of public services. Co.'s core sectors Current YTY % Chg include: Defense, which includes base and operational support, engineering, management and information services, and nuclear, Revenue LFY (M) 3,885 19.6 space and maritime services; Justice and Immigration, which EPS Diluted LFY 0.11 153.4 includes custodial services, immigration detention services, and detainee transport and monitoring; Transport, which includes rail, Market Value (M) 1,706 ferry and cycle operations, road traffic management, and air traffic control; Health, which includes facilities management and patient Shares Outstanding LFY (000) 1,226,344 administration and contact; and Citizen Services, which includes Book Value Per Share 0.58 contact centers and case management, middle, back office and IT services, and employment and skills services. EBITDA Margin % 7.70 Net Margin % 3.3 Website: www.serco.com Long-Term Debt / Capital % 29.5 ICB Industry: Industrials Dividends and Yield TTM 0.01 - 1.01% ICB Subsector: Professional Business Support Services Payout Ratio TTM % 9.4 Address: Serco House;16 Bartley Wood Business Park;Bartley Way 60-Day Average Volume (000) 2,733 Hook 52-Week High & Low 145.80 - 106.60 GBR Employees: 45,330 Price / 52-Week High & Low 0.95 - 1.30 Price, Moving Averages & Volume 147.8 147.8 Serco Group Plc is currently trading at 139.10 which is 0.5% above its 50 day moving 142.4 142.4 average price of 138.41 and 4.4% above its 200 day 137.0 137.0 moving average price of 133.20. 131.6 131.6 SRP:LN is currently 4.6% below its 52-week high price of 145.80 and is 30.5% above its 126.2 126.2 52-week low price of 106.60. Over the past 52-weeks, 120.8 120.8 SRP:LN is up 9.9% while on a calendar year-to-date basis it is up 16.4%. 115.4 115.4 The Relative Strength Index (RSI) indicator for SRP:LN is 110.0 110.0 currently 56.16. An RSI value of 70 and above is considered 104.6 104.6 overbought and 30 and below 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 oversold. Volume (000) 16,486 16,486 12,401 12,401 8,317 8,317 4,232 Mean (3143.54) 4,232 148 148 10/20 11/20 12/20 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 Price Price (50-Day Simple Moving Average) Price (200-Day Simple Moving Average) Copyright © 2021 FTSE Russell 1 www.ftserussell.com Serco Group Plc (SRP:LN) Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Price Performance, Technical Indicators & Risk Metrics Difference Price Performance % Change vs FTSE 350 Technical Indicators 1-Day % -0.64 -1.95 50-Day Average Price 138.41 1-Week % 3.04 2.01 Price / 50-Day Average 1.00 4-Week % 3.81 4.40 200-Day Average Price 133.20 52-Week % 9.87 -13.50 Price / 200-Day Average 1.04 RSI - Relative Strength Index 56.16 Quarter-to-Date % 2.51 0.89 Year-to-Date % 16.40 5.65 Risk Metrics Last Month % -5.73 -7.65 Price Volatility 2.27 Last Quarter % -1.38 -6.05 Sharpe Ratio 0.03 Last Calendar Year % -26.19 -13.20 Sortino Ratio 0.05 5-Year Price Performance vs. FTSE 350 Serco Group Plc Current: 1.06 CAGR: 1.3% Over the past five years, Serco FTSE 350 Index Current: 1.19 CAGR: 3.5% Group Plc's stock price is up 6.4% which is 12.6% below 1.3 1.3 the FTSE 350 Index performance of 19.0% over the same period. Serco Group 1.3 1.3 Plc's cumulative annualized growth rate (CAGR) over the 1.2 1.2 five year period has been ^NMX:LN 1.3% while that of the FTSE 350 Index has been 3.5%. 1.1 1.1 Over the past year, Serco Group Plc's stock price 1.1 1.1 SRP:LN performance of 9.9% has underperformed that of the 1.0 1.0 FTSE 350 Index by 13.5%. On a year-to-date basis, Serco Group Plc's stock price 1.0 1.0 performance of 16.4% has underperformed the FTSE 0.9 0.9 350 Index by 5.6%. Over the past week, Serco 0.8 0.8 Group Plc's stock price performance of 3.0% has outperformed that of the FTSE 0.8 0.8 350 Index by 2.0%. 0.7 0.7 0.7 0.7 0.6 0.6 2016 2017 2018 2019 2020 2021 2022 Copyright © 2021 FTSE Russell 2 www.ftserussell.com Serco Group Plc (SRP:LN) Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Growth and Profitability Metrics 5-Year 10-Year Historical Growth 3-Year 5-Year 10-Year Profitability Current Average Average Revenues % 9.6 4.1 -1.1 Gross Margin % 9.9 9.3 9.6 Revenues Per Share % 7.0 -9.8 -9.6 EBITDA Margin % 7.7 3.8 0.4 EBITDA % 78.2 77.0 -0.8 Pre-Tax Margin % 3.6 1.1 -2.3 EPS Diluted % 999.9 999.9 -10.2 Net Margin % 3.3 1.2 -2.1 Free Cash Flow % 999.9 999.9 -7.7 Return on Equity % 22.3 9.3 -1.7 Cash from Operations % 999.9 999.9 1.1 Return on Capital % 15.3 6.0 -5.3 Book Value % 27.8 17.9 -10.2 Return on Assets % 6.0 2.3 -2.9 Revenue (M) Serco Group Plc's cumulative annualized revenue growth Current: 3884.80 Median: 3011.00 High: 3884.80 Low: 2836.80 CAGR: 6.6% rate over the charted period is 4,094.4 4,094.4 3,884.8 6.6%. This compares to cumulatative annualized 3,657.7 3,657.7 growth of 9.6% over the past 3 3,248.4 years. 3,221.1 3,221.1 3,011.0 2,953.6 2,836.8 2,784.4 2,784.4 2016 2017 2018 2019 2020 2021 Serco Group Plc's cumulative EPS Diluted annualized EPS growth rate Current: 0.11 Median: 0.04 High: 0.11 Low: 0.00 CAGR: 0.0% over the charted period is 0.13 0.13 0.0%. This compares to 0.11 cumulatative annualized 0.09 0.09 growth of 999.9% over the 0.06 past 3 years. 0.04 0.04 0.04 0.00 0.00 0.00 0.00 2016 2017 2018 2019 2020 2021 Net Profit Margin % Serco Group Plc's net profit margin of 3.3% is 2.1% above Current: 3.33 Median: 1.58 High: 3.33 Low: -1.28 CAGR: 0.8% the period's mean net margin 3.6 3.6 of 1.2%. During the charted period, the observed net profit 1.9 Mean (1.24) 1.9 margin high and low were 3.3% and -1.3% respectively. 0.2 0.2 -1.5 -1.5 2016 2017 2018 2019 2020 2021 Serco Group Plc's return on Return on Equity % equity of 22.3% is 13.0% Current: 22.30 Median: 12.30 High: 22.30 Low: -15.50 CAGR: 4.8% above the period's mean 24.2 24.2 return on equity of 9.3%. During the charted period, the 10.3 Mean (9.27) 10.3 observed ROE high and low were 22.3% and -15.5% respectively. -3.5 -3.5 -17.4 -17.4 2016 2017 2018 2019 2020 2021 Copyright © 2021 FTSE Russell 3 www.ftserussell.com Serco Group Plc (SRP:LN) Industrials/Professional Business Support Services Price: 139.10 GBX Report Date: September 23, 2021 Valuation Metrics 5-Year 10-Year 5-Year 10-Year Current Median Median Current Median Median Price / EPS TTM 13.0 29.1 29.1 Earnings Yield % 7.90 3.09 3.10 Price / Sales 0.4 0.4 0.4 Free Cash Flow Yield % 13.44 0.00 0.00 Price / Operating Cash Flow 6.4 12.6 12.7 Dividend Yield % 1.01 0.00 0.72 Price / Book Value 2.4 3.3 3.1 Enterprise Value / EBITDA 5.9 14.2 15.0 Price / EPS TTM Serco Group Plc is trading at 13.04 times its EPS generated Current: 13.04 Median: 29.07 High: 99.90 Low: 10.98 CAGR: -33.5% during the latest fiscal year. 104.3 104.3 This multiple is below the historically observed median 71.7 71.7 of 29.07, while high and low observations have been 99.90 and 10.98. 39.1 Median (29.07) 39.1 6.5 6.5 2016 2017 2018 2019 2020 2021 Price / Sales Serco Group Plc is trading at a Price to Sales ratio of 0.43 Current: 0.43 Median: 0.43 High: 0.59 Low: 0.32 CAGR: 4.8% based on sales generated 0.60 0.60 during the latest fiscal year. This ratio is equal to the 0.50 0.50 historically observed Price/ Sales ratio of 0.43, while high Median (0.43) and low observations have 0.41 0.41 been 0.59 and 0.32.