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FirstGroup plc (FGP.L)

Industrials Dividend payer

FirstGroup runs iconic local buses and regional trains across the UK, collecting fares from millions of daily commuters.

£1.84

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.

No rating · no target price · nothing for sale here
Price+5.1%
52-week range-18% past year
£1.84
Low £1.52High £2.40
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into FirstGroup plc
£1,051+5%

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.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£975.58M
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
1.28M
Day range: The lowest and highest price the shares traded at during the latest day.
£1.82 – £1.93
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£1.52 – £2.40
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
9.2
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
3.9%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.71
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.71
Calm
Wild
Steadier than most

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.

Why has it been moving?▲ +2% past week · ▼ -18% past year

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.

The bull case

Successful expansion into zero-emission fleet services.

The bear case

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.

VQGMI
Factor profile

On our factor screen it looks strongest on value and income, and weakest on growth.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 81Quality: How profitable and financially healthy the company is (higher = stronger). 43Growth: How fast revenue and earnings are growing (higher = faster). 17Momentum: How the share price has been trending recently (higher = stronger recent run). 30Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 77
Quick checks
What's strong
  • 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
What to watch
  • 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?

P/E
9.2
For every pound of earnings the company generated recently, investors are currently paying about nine pounds.
Dividend yield
3.9%
This shows the annual cash payout relative to the share price, offering a steady income stream for shareholders.
Return on equity
16.7%
This measures how efficiently the business turns shareholder money into actual profit.
Gross margin
55.1%
Over half of ticket sales and subsidies remain after paying direct operating costs like fuel and crew wages.

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.

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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.

£2£2£1today · £2▲ Bull · £2• Base · £2▼ Bear · £1in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +20%Passenger volumes beat expectations during the winter months.
Base
-5% to +5%Ridership stays flat and matches steady seasonal trends.
Bear
-15% to -25%Unexpected strike action or rising fuel costs pinch earnings.

What are the pros and cons of FirstGroup plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • 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
The catch3
  • 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
Key risks3
  • 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 would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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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.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.