FirstGroupLSE:FGP -1.29%71 ROE % is 18.85% as of Mar. 2026, which is 197% above its 10-year median of 6.35. 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 991 Transportation companies, FirstGroup ranks better than 81.84% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. FirstGroup's annualized net income for the quarter that ended in Mar. 2026 was £126 Mil. FirstGroup's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was £666 Mil. Therefore, FirstGroup's annualized ROE % for the quarter that ended in Mar. 2026 was 18.85%.
The historical rank and industry rank for FirstGroup's ROE % or its related term are showing as below:
LSE:FGP'
s ROE % Range Over the Past 10 Years
Min: -23.67 Med: 6.35 Max: 61.95
Current: 17.49
During the past 13 years, FirstGroup's highest ROE % was 61.95%. The lowest was -23.67%. And the median was 6.35%.
LSE:FGP's ROE % is ranked better than 81.84% of 991
companies
in the Transportation industry
Industry Median: 7.6
vs LSE:FGP: 17.49
FirstGroup (LSE:FGP) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
FirstGroup ROE % Related Terms
FirstGroup ROE % Historical Data
* Premium members only.
The historical data trend for FirstGroup's ROE % 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.
For the Railroads subindustry, FirstGroup's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Transportation Industry
For the Transportation industry and Industrials sector, FirstGroup's ROE % distribution charts can be found below:
* The bar in red indicates where FirstGroup's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
FirstGroup (LSE:FGP) has a ROE % of 18.85% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FirstGroup and its competitors. This is 197% above median its historical median of 6.35. According to the industry distribution chart, FirstGroup ranks #180 out of 991 companies in the Transportation industry, placing it in the top 18.2%.
Is FirstGroup's ROE % too high?
FirstGroup's current ROE % of 18.85% is 197% above median its 10-year median of 6.35. The Transportation industry median ROE % is 7.60. FirstGroup's value of 18.85% is 148% above this industry median. Based on the distribution chart, FirstGroup ranks #180 out of 991 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to UNP and CSX?
According to the Transportation industry distribution chart, FirstGroup ranks #180 out of 991 companies for ROE %. This places FirstGroup in the top 18% of its industry — outperforming the majority of peers. The industry median ROE % is 7.60. FirstGroup's value of 18.85% is 148% above this benchmark. While the company's 10-year median is 6.35 vs. the industry median of 7.60, FirstGroup has consistently been above 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 ROE % for a Transportation company?
The median ROE % among Transportation companies is 7.60, based on 991 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FirstGroup's current ROE % of 18.85% is 148% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FirstGroup and its competitors. For the Transportation industry, the median ROE % is 7.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FirstGroup's current ROE % is 18.85%, which is 197% above median its own 10-year median of 6.35. 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 ROE % is 18.85%, which is 197% above median its 10-year median of 6.35 and 148% above the Transportation industry median of 7.60. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For FirstGroup (LSE:FGP), the current ROE % is 18.85% 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:
ROE %: 18.85% (197% above median its 10-year median of 6.35)
GF Value™: £2.00 vs. price of £1.84 (8.1% below fair value)
Industry Position: 148% above the Transportation median (#180 of 991)
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
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