Serco Share Discussion Threads

[casholaa] 05/10/2021 16:02

The added facet here is China/Taiwan.

[medieval blacksmith] 05/10/2021 09:31

Foward consensus PE ratio of 6, 3 year average of 20. Dividend payout ratio of 16.7%. ROE 16.9%, ROCE 10.2%, CROCI 15.1%. Acquisition of leading US defence business and another in Australia. Share buy backs. Defensive. What isn't to like?

[prokartace] 05/10/2021 07:24

Not having a big dividend is fine as long as the profits are used by the company in some way to expand the business to produce greater profits. I can't see much evidence of that here. Because of this I would need a bigger dividend to invest in this share

[18bt] 14/9/2021 15:39

Reasonably clear from today's announcements that test and trace is here to stay for some more months -SRP should benefit for a bit longer yet.

[medieval blacksmith] 25/8/2021 10:28

I'm not interested in the dividend.

[coxsmn] 25/8/2021 10:27

0.8p dividend is not exceptional

[medieval blacksmith] 25/8/2021 09:20

Essential

Book to Bill ratio of 190% should give you confidence about sustainability for the near term. This one is just being overlooked because of perceived value elsewhere and negative press.

[essentialinvestor] 25/8/2021 00:20

Recent results were exceptional, market questioning the
sustainability given significant earnings from COVID related contracts.

[davethehorse] 24/8/2021 22:41

Back to 120p ish??

[mj19] 24/8/2021 13:29

All the way back down from 146

[coxsmn] 09/8/2021 13:00

Agree, frugal dividend is holding this back imo.

[medieval blacksmith] 05/8/2021 09:21

Salpara111

I wasn't implying a takeover of Serco - it was reference to the buy backs.

[salpara111] 05/8/2021 09:19

Well if it isn't the divi, I struggle to understand the pretty negative reaction to what is objectively a very solid set of figures.
I do agree that at the current valuation and strength of the business there is a small possibility that someone might have a shot at a takeover.

[medieval blacksmith] 05/8/2021 08:56

I don't agree with you there Salpara111. It the current climate I think it shows courage and prudence not to get caught in an over-excessive progresive dividend trap. Also there will be plenty of assets perhaps going on the cheap including Serco itself so best use/save the capital for buybacks and elsewhere.

[salpara111] 05/8/2021 07:41

Support services are really out of favour at the moment, look at how Capita is doing.
I really think that Serco have shot themselves in the foot with the pathetic divi, it displays a lack of confidence going forward.

[babbler] 05/8/2021 07:30

And down it goes. This one really unloved

[salpara111] 05/8/2021 07:12

As expected solid results, the only thing I find disappointing is the skinny dividend when compared to underlying earnings.

[undervaluedassets] 13/7/2021 11:21

Rimau. SRP results are a standout though.

Looks like the price is finally stirring

[rimau1] 12/7/2021 06:58

Sorry, i meant “in general” support services is a dog of a sector.

[undervaluedassets] 05/7/2021 08:18

Rimau, that is not true. The average pe over the years for SRP has been 21 (see advfn financial's page). And it has been as high as 34.

So For a company that is currently growing, it is more than reasonably priced on a pe of 14.

[rimau1] 05/7/2021 07:49

The issue is that Serco is in support services. Highly unlikely to achieve a rating of 15-20x in this dog sector. Anyone can to name a peer that has or had a similar rating?

[weemonkey] 02/7/2021 08:03

ADVFN has the 3 year ePS growth rate annualised at 20%
The 4 yr ePS growth rate annualised is 33% (source sharescope)

Meanwhile PE ratio is 13.

A correct valuation has the PE ratio roughly match the EPS growth rate.

There is a mismatch here. Not saying the PE will jump to 33 But a pe of 20 looks doable.

A medium term target of £2.15 then.

[uhound] 30/6/2021 07:12

MM messing with price?

[wilksey1] 30/6/2021 06:57

that update seems really positive

[undervaluedassets] 28/6/2021 08:35

last 3 years have seen improving everything:- EPS,turnover, profits, cash, and balance sheet. There is even a divi now.

And the news just keeps improving.

The market will catch on in the end. There is a "common sense gap" here that will get filled.