FirstGroupLSE:FGP -1.29%71 Operating Margin % is 5.69% as of Mar. 2026, which is 47% above its 10-year median of 3.88. GuruFocus rates LSE:FGP with a GF Score™ of 71/100 and a GF Value™ of £2.00 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,007 Transportation companies, FirstGroup ranks worse than 60.28% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. FirstGroup's Operating Income for the
six
months ended in Mar. 2026 was £116 Mil. FirstGroup's Revenue for the
six
months ended in Mar. 2026 was £2,035 Mil. Therefore, FirstGroup's Operating Margin % for the quarter that ended in Mar. 2026 was 5.69%.
Good Sign:
FirstGroup PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for FirstGroup's Operating Margin % or its related term are showing as below:
LSE:FGP'
s Operating Margin % Range Over the Past 10 Years
Min: -0.82 Med: 3.88 Max: 5.06
Current: 5.06
LSE:FGP's Operating Margin % is ranked worse than 60.28% of 1007
companies
in the Transportation industry
Industry Median: 7.37
vs LSE:FGP: 5.06
FirstGroup's 5-Year Average Operating Margin % Growth Rate was 17.20% per year.
FirstGroup's Operating Income for the
six
months ended in Mar. 2026 was £116 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was £219 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
FirstGroup Operating Margin % Related Terms
FirstGroup Operating Margin % Historical Data
* Premium members only.
The historical data trend for FirstGroup's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:FGP vs UNP, CSX, NSC: Operating Margin % Comparison
For the Railroads subindustry, FirstGroup's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
FirstGroup Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, FirstGroup's Operating Margin % distribution charts can be found below:
* The bar in red indicates where FirstGroup's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
FirstGroup's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FirstGroup (LSE:FGP) has a Operating Margin % of 5.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on FirstGroup and its competitors. This is 47% above median its historical median of 3.88. According to the industry distribution chart, FirstGroup ranks #607 out of 1007 companies in the Transportation industry, placing it in the top 60.3%.
Is FirstGroup's Operating Margin % too high?
FirstGroup's current Operating Margin % of 5.69% is 47% above median its 10-year median of 3.88. The Transportation industry median Operating Margin % is 7.37. FirstGroup's value of 5.69% is 22.8% below this industry median. Based on the distribution chart, FirstGroup ranks #607 out of 1007 companies in the Transportation industry, which is below the industry midpoint. Overall, FirstGroup has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FirstGroup's Operating Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, FirstGroup ranks #607 out of 1007 companies for Operating Margin %. This places FirstGroup in the lower half of its industry. The industry median Operating Margin % is 7.37. FirstGroup's value of 5.69% is 22.8% below this benchmark. While the company's 10-year median is 3.88 vs. the industry median of 7.37, FirstGroup has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FirstGroup's current Operating Margin % of 5.69% is 22.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on FirstGroup and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FirstGroup's current Operating Margin % is 5.69%, which is 47% above median its own 10-year median of 3.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FirstGroup stock overvalued right now?
Based on GuruFocus' analysis, FirstGroup (LSE:FGP) is currently considered Fairly Valued. The stock's GF Value™ is £2.00, compared to a current price of £1.84 — trading 8.1% below its estimated fair value. The current Operating Margin % is 5.69%, which is 47% above median its 10-year median of 3.88 and 22.8% below the Transportation industry median of 7.37. FirstGroup's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For FirstGroup (LSE:FGP), the current Operating Margin % is 5.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FirstGroup (LSE:FGP) Overvalued in 2026?
Based on GuruFocus' analysis, FirstGroup stock appears to be undervalued.
The current stock price of £1.84 is trading 8.1% below its estimated GF Value™ of £2.00.
GuruFocus considers FirstGroup to be Fairly Valued.
Key valuation signals for LSE:FGP:
Operating Margin %: 5.69% (47% above median its 10-year median of 3.88)
GF Value™: £2.00 vs. price of £1.84 (8.1% below fair value)
Industry Position: 22.8% below the Transportation median (#607 of 1007)
No single metric tells the full story. See the LSE:FGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FirstGroup PLC is a passenger transportation company domiciled in the United Kingdom. The company organizes itself into segments: Greyhound, First Bus, and First Rail. The Greyhound segment operates intercity coaches in the United States and Canada. First Bus operates buses in the United Kingdom. First Rail operates passenger trains in the United Kingdom. The company derives the majority of its revenue from the United Kingdom.
71GF Score
Get the complete analysis for LSE:FGP
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:FGP has been successfully added to your 
