FirstGroup plc (LON:FGP) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. Unfortunately, despite the strong performance over the last month, the full year gain of 8.8% isn’t as attractive.

Even after such a large jump in price, when close to half the companies operating in the United Kingdom’s Transportation industry have price-to-sales ratios (or “P/S”) above 0.8x, you may still consider FirstGroup as an enticing stock to check out with its 0.2x P/S ratio. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s limited.

We check all companies for important risks. See what we found for FirstGroup…