# Serica Energy plc (SQZ.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Energy / Oil, Gas & Consumable Fuels. Price 266p, market value 1.0 billionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Serica Energy plc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.4×**. Enterprise value is 5.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -1.7%** (5-yr avg 0.2%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.

## Profitability
- **Gross margin: 10.1%**. Serica Energy plc keeps 10.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.1%**. 3.1% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: -8.6%**. The company reported a net loss over the last twelve months.
- **Return on equity: -7.9%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 1.7%**. Return on all capital, debt included, is 1.7%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -3.7%**. Each dollar of assets produces -3.7% of profit.

## Growth
- **Revenue growth (1 yr): -15.6%** (3-yr -9.0%/yr, 5-yr 37.3%/yr). Revenue fell 15.6% over the last year, against 37.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -156.5%**. Earnings per share fell 156.5%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.34**. Debt is 0.34 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 1.0×**. Operating profit covers interest only 1.0×: fragile.
- **Current ratio: 1.14** (quick 1.01). Current assets cover the next year's liabilities 1.14 times.
- **Altman Z-score: 1.19**. A Z-score of 1.19 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 6.07%** (0p per share, trailing). Serica Energy plc yields 6.07%, high enough to check carefully: yields this high often precede a cut.
- **Dividend growth (5 yr): 39.8%/yr** (1-yr -30.4%). The dividend has compounded at 39.8% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 7.1%**. Dividends plus net buybacks return 7.1% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (8 analysts). 8 analysts cover Serica Energy plc; the consensus is strong_buy, with an average price target of 317p (+19% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 49.9%** (YTD 50.5%, 3-mo -1.4%). The shares are up 49.9% over twelve months including dividends.
- **From 52-week high: -11.9%** (108.8% above the low). Trading 12% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): -0.80** (volatility 54%). Beta of -0.80 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SQZ.L · Page: https://foliofundamentals.com/stocks/sqz.l

Not investment advice.