
FirstGroup plc (FGP.L)
FirstGroup runs iconic local buses and regional trains across the UK, collecting fares from millions of daily commuters.
Is FirstGroup plc a good stock for a UK beginner?
The honest version: FirstGroup runs iconic local buses and regional trains across the UK, collecting fares from millions of daily commuters.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Successful expansion into zero-emission fleet services.
High costs of green upgrades strain the balance sheet.
What does FirstGroup plc do?
Ever tapped your contactless card on a city bus or hopped on a regional train? That is where this transport giant collects its cash, alongside regular subsidies from government bodies to keep rural routes running. The critical detail to keep an eye on is how well passenger numbers hold up against rising running costs.
On our factor screen it looks strongest on value and income, and weakest on growth.
- ✓Pays a dividend - about 3.9% a year
- !Revenue slipped about 14% over the year
- !Thin profits - turns only about 2% of sales into profit
- ·Low P/E of 9 vs last year's earnings
- !Carries a lot of debt - roughly 1.6x its equity
- ✓Strong return on shareholder money (ROE 17%)
- Value screens high (81/100)
- Income screens high (77/100)
- Essential service provider with deep roots in UK transport
- Solid return on equity indicates efficient management of assets
- Respectable dividend yield for income-focused portfolios
- Growth screens low (17/100)
- Momentum screens low (30/100)
- Political shifts altering how local transport networks are funded
- Industrial action causing costly disruptions to daily services
- Slower-than-expected passenger recovery on certain key routes
What do FirstGroup plc's numbers mean?
Does FirstGroup plc pay a dividend?
Yes - FirstGroup plc currently pays a dividend of about 3.9% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
More in Industrials
What are the scenarios for FirstGroup plc?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of FirstGroup plc?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Essential service provider with deep roots in UK transport
- Solid return on equity indicates efficient management of assets
- Respectable dividend yield for income-focused portfolios
- Recent revenue and earnings growth are moving in reverse
- Heavy reliance on government policy and public sector contracts
- Vulnerable to sudden spikes in fuel and labour costs
- Political shifts altering how local transport networks are funded
- Industrial action causing costly disruptions to daily services
- Slower-than-expected passenger recovery on certain key routes
The write-up's own warning lights — if these start happening, the case above changes.
- Sudden loss of major regional bus or rail operating contracts
- A dramatic structural decline in daily commuter numbers
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.