(1888PressRelease)
November 20, 2008 - Mira, Portugal – SADIF Investment Analytics SA, today announced the release of a new equity research report covering FirstGroup plc (FGP). The report utilizes SADIF's powerful StockMarks™ stock rating system and is required reading for any current or potential FirstGroup plc investor.
Report Summary: On November 5th UK-based passenger transport company FirstGroup plc reported mixed results for the six months to the end of September. The company reported lower profits for the six month period as the result of charges involved with the acquisition of Laidlaw. However, after adjustments for non-recurring items, FirstGroup's earnings are far more attractive. The company's adjusted operating profit rose by 78.5% and adjusted EPS rose by 40.5% compared to the same period a year earlier while revenue rose by 56.5%. On a pro-forma basis including the Laidlaw acquisition, operating profit from the company's North American businesses rose 45%. The UK businesses saw slower, but still considerable earnings growth. FirstGroup also stated in its earnings announcement that approximately 50% of its revenues are secured under medium-term contracts with government agencies and large organizations.
However, despite these promising results, the company's shares are down 44% since the start of 2008. Concerns over various factors including fuel prices, a potential decline in London commuters, the general deterioration of the UK economy and high debt levels have contributed to the decline in the company's shares. However, in order to make an informed investment decision regarding FirstGroup, we should look closely at the company's underlying long-term fundamentals. We can assess the company's fundamentals through the use of the StockMarks framework. FirstGroup currently has an overall long-term investment-attractiveness rating (Total StockMark or SMT) of 66, rating the company above the UK market average. This rating places FirstGroup first when compared to ten of the company's closest peers, selected on the basis of similarity of business and market positioning factors such as size.
The complete report breaks down the Total StockMark into its three components – Business, Management and Price, performing a thorough analysis of FirstGroup plc for long-term investors.
A summary of the StockMarks™ ratings for FirstGroup plc is available here:
http://sadifanalytics.com/stockmarks/company.php?ticker=FGP&cod_country=110
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites, from multiple professional platforms including Reuters Knowledge, TheMarkets.com and Thomson Research or directly from SADIF-Investment Analytics SA at:
http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=110
About SADIF-Investment Analytics SA
SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks™ system is based on proven investment principles and is designed to drive long-term shareholder returns.
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