# FirstGroup plc (FGP.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Road & Rail. Price 174p, market value 906 millionp.

## Valuation
- **P/E (trailing): 8.7×** (5-yr avg 676.9×, 3-yr avg 785.4×). FirstGroup plc trades at 8.7× trailing earnings, well below its own five-year average of 676.9×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 8.9×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 1.78**. A PEG of 1.78 is in the range usually read as fairly priced for its growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 1.2×**. Enterprise value is 1.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 108.7%** (5-yr avg 0.3%). Free cash flow equals 108.7% of the market value, above its five-year average of 0.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.5%**. The inverse of the P/E: 11.5% of the price is earned each year.

## Profitability
- **Gross margin: 3.3%**. FirstGroup plc keeps 3.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.3%**. 3.3% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.5%**. 2.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.7%**. 16.7% on shareholders' equity is solid.
- **Return on invested capital: 17.5%**. Return on all capital, debt included, is 17.5%: comfortably above what that capital costs.
- **Return on assets: 7.9%**. Each dollar of assets produces 7.9% of profit.

## Growth
- **Revenue growth (1 yr): 2.1%** (3-yr -0.0%/yr, 5-yr 1.9%/yr). Revenue grew 2.1% over the last year, against 1.9% a year compounded over five years.
- **EPS growth (1 yr): 5.0%** (3-yr 24.1%/yr, 5-yr 26.9%/yr). Earnings per share rose 5.0%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): -2.0%/yr**. Free cash flow has compounded at -2.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.63**. Debt is 1.63 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.4×**. Operating profit covers interest 2.4×, thin but manageable.
- **Current ratio: 0.73** (quick 0.71). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.08**. A Z-score of 2.08 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 4.10%** (0p per share, trailing). FirstGroup plc yields 4.10%, an income-level yield.
- **Payout ratio: 33%** (7% of free cash flow). 33% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Shareholder yield: 24.2%**. Dividends plus net buybacks return 24.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -18.1%** (YTD -7.3%, 3-mo 4.0%). The shares are down 18.1% over twelve months including dividends.
- **From 52-week high: -23.0%** (14.3% above the low). Trading 23% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 42**. An RSI of 42 is neutral.
- **Beta (1 yr): 0.62** (volatility 25%). Beta of 0.62 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.