LSE:FGP

Stock Analysis Report

Executive Summary

FirstGroup plc provides passenger transport services.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Firstgroup's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

LSE:FGP

0.6%

GB Transportation

0.4%

GB Market


1 Year Return

40.9%

LSE:FGP

-2.9%

GB Transportation

-6.2%

GB Market

FGP outperformed the Transportation industry which returned -2.9% over the past year.

FGP outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

FGPIndustryMarket
7 Day3.7%0.6%0.4%
30 Day11.3%0.3%-5.2%
90 Day16.0%4.6%-2.3%
1 Year40.9%40.9%3.1%-2.9%-1.7%-6.2%
3 Year16.2%16.2%27.7%10.8%16.8%2.9%
5 Year0.5%0.5%17.7%-4.1%24.2%-2.3%

Price Volatility Vs. Market

How volatile is Firstgroup's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Firstgroup undervalued based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Firstgroup's share price is below the future cash flow value, and at a moderate discount (> 20%).

Firstgroup's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Firstgroup is loss making, we can't compare its value to the GB Transportation industry average.

Firstgroup is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Firstgroup, we can't assess if its growth is good value.


Price Based on Value of Assets

Firstgroup is good value based on assets compared to the GB Transportation industry average.


Next Steps

Future Growth

How is Firstgroup expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Firstgroup's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Firstgroup's earnings are expected to grow significantly at over 20% yearly.

Firstgroup's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Firstgroup's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Firstgroup's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Firstgroup is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Firstgroup performed over the past 5 years?

-50.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Firstgroup does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Firstgroup's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Firstgroup's 1-year growth to the GB Transportation industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Firstgroup has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Firstgroup used its assets less efficiently than the GB Transportation industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Firstgroup improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Firstgroup's financial position?


Financial Position Analysis

Firstgroup is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Firstgroup's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Firstgroup's level of debt (104.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (133.1% vs 104.3% today).

Debt is well covered by operating cash flow (35.5%, greater than 20% of total debt).

Firstgroup is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Firstgroup's current dividend yield, its reliability and sustainability?

2.67%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Firstgroup's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Firstgroup's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Firstgroup has not reported any payouts.

Unable to verify if Firstgroup's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Firstgroup has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


Next Steps

Management

What is the CEO of Firstgroup's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Matthew Gregory 0

0.8yrs

Tenure

UK£876,000

Compensation

Mr. Matthew Gregory is Chief Executive at Firstgroup plc since November 13, 2018 and is its Executive Director since December 1, 2015. Mr. Gregory was an Interim Chief Operating Officer at Firstgroup plc s ...


CEO Compensation Analysis

Matthew's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Matthew's compensation has increased whilst company is loss making.


Management Age and Tenure

2.7yrs

Average Tenure

The tenure for the Firstgroup management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Firstgroup board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£9,92625 Oct 18
Wolfhart Hauser
EntityIndividual
Shares11,691
Max PriceUK£0.85
BuyUK£9,92626 Sep 18
Wolfhart Hauser
EntityIndividual
Shares10,459
Max PriceUK£0.95

Ownership Breakdown


Management Team

  • Kevin Belfield

    Managing Director of South Yorkshire

    • Tenure: 3.0yrs
  • Michael Hampson (60yo)

    General Counsel & Company Secretary

    • Tenure: 0.0yrs
  • Ryan Mangold

    CFO & Director

    • Tenure: 0.3yrs
  • Matthew Gregory

    CEO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£876.00k
  • Stuart Butchers

    Group Head of Communications

    • Tenure: 0.0yrs
  • Tim Noble

    Head of Procurement - TransPennine Express

    • Tenure: 3.8yrs
  • Faisal Tabbah

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Liz Collins

    Interim Managing Director

    • Tenure: 0.0yrs
  • Jim Harbidge

    Group Head of Environment

    • Tenure: 3.3yrs
  • Andrew Jarvis

    Managing Director for Scotland and Glasgow

    • Tenure: 2.3yrs

Board Members

  • David Martin (68yo)

    Non-Executive Chairman

    • Tenure: 0.0yrs
  • Imelda Walsh (55yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£70.00k
  • David Robbie (55yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£70.00k
  • Jim Winestock (67yo)

    Independent Non-Executive Director

    • Tenure: 7.0yrs
    • Compensation: UK£78.00k
  • Warwick Brady (55yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£58.00k
  • Martha Poulter (52yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£61.00k
  • Ryan Mangold

    CFO & Director

    • Tenure: 0.3yrs
  • Matthew Gregory

    CEO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£876.00k
  • Steve Gunning

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£15.00k
  • Jimmy Groombridge

    Group Employee Director

    • Tenure: 2.3yrs
    • Compensation: UK£58.00k

Company Information

Firstgroup plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Firstgroup plc
  • Ticker: FGP
  • Exchange: LSE
  • Founded: 1995
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: UK£1.545b
  • Shares outstanding: 1.21b
  • Website: https://www.firstgroupplc.com

Number of Employees


Location

  • Firstgroup plc
  • 395 King Street
  • Aberdeen
  • Aberdeenshire
  • AB24 5RP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FGRO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1995
FGRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1995
FGPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1995
FGPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1995
FGRO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

FirstGroup plc provides passenger transport services. The company’s First Student segment provides student transportation services through a fleet of approximately 44,000 yellow school buses in North Ameri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 20:37
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.