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FirstGroup plc Unsponsored ADR (FGROY)
:FGROY
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FirstGroup
(OTC:FGROY)
69Neutral
FirstGroup (FGROY) vs. S&P 500 (SPY)
Market Cap
$1.44B
Dividend Yield2.44%
Average Volume (3M)196.00
Price to Earnings (P/E)12.8
Beta (1Y)0.45
Revenue Growth5.76%
EPS Growth304.12%
CountryUS
Employees30,000
SectorIndustrials
Sector Strength91
IndustryRailroads
Share Statistics
EPS (TTM)0.20
Shares Outstanding584,970,500
10 Day Avg. Volume0
30 Day Avg. Volume196
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.26
Price to Sales (P/S)0.00
P/FCF Ratio2.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
FirstGroup Business Overview & Revenue Model
Company DescriptionFirstGroup plc (FGROY) is a leading transport operator in the United Kingdom and North America, specializing in providing public transportation services. The company's core operations include running rail services, bus transportation, and school bus services. FirstGroup is focused on delivering efficient, sustainable, and customer-oriented transport solutions, serving millions of passengers annually across its diverse portfolio of services.
How the Company Makes MoneyFirstGroup generates revenue primarily through its public transportation services in the UK and North America. Key revenue streams include fares collected from passengers using its rail and bus services, as well as contracts and agreements with local governments and municipalities for providing school bus services. The company also benefits from partnerships and alliances with local authorities and transport bodies, which can include subsidies or funding to support public transport initiatives. Additionally, FirstGroup may earn ancillary revenue from advertising and retail opportunities within its transportation network.
FirstGroup Financial Statement Overview
Summary
FirstGroup's financial performance shows mixed results. While revenue growth is a positive indicator, profitability remains a challenge with net losses. High leverage and declining equity raise potential financial stability concerns. Strong operating cash flow is a plus, but the reduction in free cash flow suggests caution in financial planning.Income Statement
FirstGroup's revenue has shown a growth trajectory from 2023 to 2024, increasing by approximately 10.25%, which is a positive indicator in the transportation sector. However, margins are under pressure, as evidenced by the decline in EBIT and EBITDA margins compared to previous years. The company has also reported a net loss for 2024, raising concerns about profitability. Despite the increase in gross profit indicating good cost management, the persistence of net losses suggests underlying profitability issues.62
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which could pose risks in a volatile market. The equity ratio has decreased, suggesting reduced financial stability. Return on equity is negative due to net losses, reflecting poor returns for shareholders. The reduction in stockholders' equity over the past year is also a concern. However, the company has maintained a reasonable level of cash and short-term investments, offering some liquidity buffer.58
Neutral
Cash Flow
Operating cash flow remains strong and exceeds net income, indicating effective cash management and operations. However, free cash flow has decreased compared to the previous year, with a negative growth rate. This could impact future investments and debt servicing. The company is generating cash, but the decline in free cash flow coupled with high financing outflows raises some concerns about sustainability.65
Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.26B | 3.86B | 2.93B | 1.74B | 7.39B | Gross Profit |
| 1.57B | 829.30M | 0.00 | -1.16B | 2.35B | EBIT |
| 46.50M | 153.90M | 122.80M | 224.30M | -152.70M | EBITDA |
| 656.30M | 896.70M | 875.40M | 1.15B | 697.80M | Net Income Common Stockholders |
| -15.90M | 87.10M | 636.40M | 78.40M | -327.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 496.50M | 791.40M | 787.70M | 1.44B | 237.10M | Total Assets |
| 3.81B | 4.41B | 3.83B | 8.29B | 8.34B | Total Debt |
| 1.63B | 2.07B | 1.41B | 3.82B | 4.20B | Net Debt |
| 1.13B | 1.28B | 626.10M | 2.38B | 3.96B | Total Liabilities |
| 3.17B | 3.66B | 2.95B | 7.14B | 7.17B | Stockholders Equity |
| 633.30M | 740.20M | 876.60M | 1.18B | 1.21B |
| Cash Flow | Free Cash Flow | |||
| 324.00M | 395.90M | -186.20M | 814.80M | 627.20M | Operating Cash Flow |
| 543.30M | 573.80M | 65.40M | 1.20B | 958.20M | Investing Cash Flow |
| -10.20M | 79.40M | 2.08B | -270.00M | -303.40M | Financing Cash Flow |
| -776.30M | -640.90M | -2.89B | -357.90M | -481.00M |
FirstGroup Technical Analysis
Positive
2.52
Price Trends
2.23
Positive
2.13
Positive
2.03
Positive
Market Momentum
0.09
Negative
75.39
Negative
98.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FGROY, the sentiment is Positive. The current price of 2.52 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.23, and above the 200-day MA of 2.03, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 75.39 is Negative, neither overbought nor oversold. The STOCH value of 98.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FGROY.
FirstGroup Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $35.45B | 32.47 | 10.62% | 0.41% | 5.21% | 24.15% | |
73 Outperform | $2.18B | 16.41 | 14.14% | 4.35% | -9.40% | 8.41% | |
70 Neutral | $206.96M | 5.81 | 23.08% | ― | -8.75% | 354.10% | |
69 Neutral | $1.44B | 12.85 | 14.33% | 2.44% | 5.76% | 304.12% | |
67 Neutral | $1.47B | 7.44 | 14.69% | 2.60% | -5.79% | 82.71% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
52 Neutral | $143.56M | ― | 156.43% | ― | 12.58% | 34.10% |
* Industrials Sector Average
Performance Comparison
FGROY
FirstGroup
2.54
0.42
19.81%
RAIL
Freightcar America
7.48
3.89
108.36%
GBX
Greenbrier
46.41
-2.81
-5.71%
FSTR
L. B. Foster Company
19.17
-9.57
-33.30%
TRN
Trinity Industries
26.58
-2.53
-8.69%
WAB
Westinghouse Air Brake Technologies
204.75
35.96
21.30%
FirstGroup Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q2-2025)
| % Change Since: 46.51%|
Next Earnings Date:Jun 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook with strong financial performance and growth initiatives in bus and open access rail, complemented by significant sustainability achievements. However, challenges such as government policy changes and reduced funding create headwinds, balancing the overall sentiment.Q2-2025 Updates
Positive Updates
Strong Financial Performance in Bus and Rail
First Bus achieved an 8% adjusted operating profit margin in the first half, aiming for 10% in the second half. Revenue growth was supported by a 4% increase in passenger volumes. Open Access Rail showed double-digit revenue growth, with Hull Trains and Lumo exceeding expectations in financial performance.
Sustainability and Electrification Progress
FirstGroup has been upgraded to an AAA ESG ranking by MSCI, reflecting significant investments in electrifying its bus fleet and depot infrastructure.
Increased Shareholder Returns
An interim dividend increased by 13% to 1.7p per share was announced along with a new GBP 50 million share buyback program.
Acquisitions and Expansion
First Bus acquired Anderson Travel and Lakeside Coaches, expanding its footprint in the adjacent services market. It also acquired track access rights from Grand Union for a new open access rail service.
EPS Growth and Financial Metrics
Earnings per share increased by 4.9 percentage points year-on-year to 8.5p. The group generated GBP 72.1 million in capital from operations in a seasonally lower first half.
Negative Updates
Challenges with Government Policy Changes
The government policy changes, including the nationalization of train operating companies, pose challenges, potentially reducing earnings from DfT TOCs.
Impact of Reduced Government Funding
Lower government grant funding impacted revenue, offsetting some growth in bus and open access rail.
Cost Inflation in Bus Operations
Bus operations faced a 3% underlying cost inflation, particularly in driver wages and engineering staff.
Rail Nationalization Uncertainty
The process and timing for the nationalization of train operating companies remain unclear, potentially affecting future operations and revenue.
Company Guidance
During the FirstGroup Q2 2025 earnings call, executives Graham Sutherland and Ryan Mangold provided comprehensive guidance on the company's performance and future expectations. The interim dividend increased by 13% to 1.7p per share, reflecting strong confidence in the strategy. They reported an 8% increase in underlying revenues for the continuing business, with a goal to reach a 10% adjusted operating profit margin in the second half. The bus division notably improved, achieving an 8.0% operating margin, up from 7.1% the previous year. FirstGroup announced a GBP 50 million share buyback program, showing commitment to returning excess capital to shareholders. Despite planned government policy changes, they aim to maintain earnings per share for the full year 2026. The company received an AAA ESG ranking from MSCI and has been advancing bus fleet electrification rapidly. Open Access operations, Hull Trains and Lumo, demonstrated significant revenue growth, with seat capacity utilization above the national average. The group is actively seeking growth opportunities, both organic and inorganic, in bus and rail sectors, while preparing for potential impacts from bus franchising and rail nationalization policies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.