Costain (COST) AI Stock Analysis

• Market Cap: £266.88M
• Dividend Yield: 1.21%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.97
• Revenue Growth: -6.07%
• EPS Growth: 41.18%
• Country: UK
• Employees: 3,270
• Sector: Industrials
• Sector Strength: 63
• Industry: Engineering & Construction
• EPS (TTM): 0.11
• Shares Outstanding: 272,566,100
• 10 Day Avg. Volume: 831,776
• 30 Day Avg. Volume: 1,466,872
• PEG Ratio: 0.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.22
• Price to Cash Flow (P/CF): 9.90
• P/FCF Ratio: 12.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 127.50p
• Price Target Upside: 28.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Costain's strong balance sheet and undervalued status drive its overall score. While profitability improvements are noted, modest margins and declining cash flow highlight areas for enhancement. Positive corporate developments and strategic growth initiatives bolster future prospects.

Costain Business Overview & Revenue Model

Company Description

Costain Group PLC is a leading British construction and engineering company that operates in the infrastructure sector, offering a range of services including consultancy, project management, and delivery for key infrastructure projects. The company focuses on sectors such as transportation, water, energy, and defense, providing integrated solutions to enhance the performance and resilience of critical national infrastructure.

How the Company Makes Money

Costain makes money primarily through contracts for designing, managing, and delivering large-scale infrastructure projects. Its revenue streams are largely derived from public sector projects and partnerships with government entities to improve transportation networks, water systems, and energy infrastructure. The company engages in long-term contracts, often involving complex projects that require Costain's expertise in engineering and project management. Additionally, Costain benefits from strategic partnerships and alliances that enhance its capabilities and expand its market reach, contributing to its earnings.

Costain Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.31B	1.33B	1.42B	1.14B	978.40M	1.16B
	Gross Profit
102.10M	103.50M	82.20M	39.10M	-59.10M	47.90M
	EBIT
33.70M	34.80M	46.30M	-9.50M	-81.10M	15.60M
	EBITDA
57.40M	50.90M	47.20M	4.60M	-65.10M	18.00M
	Net Income Common Stockholders
30.50M	22.10M	25.90M	-5.80M	-78.00M	-2.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
164.40M	164.40M	123.80M	159.40M	150.90M	180.90M
	Total Assets
468.60M	468.60M	482.20M	532.40M	489.90M	552.50M
	Total Debt
24.30M	24.30M	24.10M	66.20M	80.10M	146.00M
	Net Debt
-140.10M	-140.10M	-99.70M	-93.20M	-70.80M	-34.90M
	Total Liabilities
249.20M	249.20M	271.00M	333.40M	333.40M	394.80M
	Stockholders Equity
219.40M	219.40M	211.20M	199.00M	156.50M	157.70M
Cash Flow		Free Cash Flow
50.40M	55.60M	13.60M	27.30M	-50.90M	-38.90M
	Operating Cash Flow
52.20M	55.70M	14.10M	29.50M	-46.80M	-32.00M
	Investing Cash Flow
-4.10M	-100.00K	-1.30M	-2.20M	4.50M	3.80M
	Financing Cash Flow
-14.20M	-15.00M	-48.40M	-18.80M	12.90M	19.80M

Costain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	80 Outperform	£314.11M	7.97	35.97%	5.29%	22.39%	179.53%
BBY	77 Outperform	£2.03B	11.84	15.35%	2.92%	3.02%	-3.23%
COST	73 Outperform	£266.88M	8.80	13.45%	1.21%	-6.07%	41.18%
KIE	68 Neutral	£499.43M	11.67	10.20%	4.41%	8.04%	6.94%
SRP	67 Neutral	£1.63B	38.51	4.71%	2.25%	-0.68%	-78.93%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%
CPI	59 Neutral	£205.40M	2.69	49.03%	―	-10.33%	―

Costain Corporate Events

Costain Group Announces 2025 AGM Details and Annual Report Release

Costain Group PLC has announced the details of its 2025 Annual General Meeting (AGM), scheduled for May 15, 2025, in London. Shareholders are encouraged to participate by voting and submitting questions in advance. The AGM Notice and the Annual Report for the year ending December 31, 2024, are now available online and through the National Storage Mechanism. The Board emphasizes the importance of informed voting and will provide responses to shareholder inquiries prior to the meeting.

Spark’s Take on GB:COST Stock

According to Spark, TipRanks’ AI Analyst, GB:COST is a Outperform.

Costain’s strong balance sheet and undervalued status drive its overall score. While profitability improvements are noted, modest margins and declining cash flow highlight areas for enhancement. Positive corporate developments and strategic growth initiatives bolster future prospects.

To see Spark’s full report on GB:COST stock, click here.

Costain Group PLC Announces New Share Listing

Costain Group PLC has applied for the admission of 3,800,000 new ordinary shares to the UK Listing Authority’s Official List and the London Stock Exchange. This move is part of the company’s Long Term Incentive Plan, with shares expected to be admitted on 7 April 2025, enhancing the company’s capital structure and potentially impacting shareholder value.

Oasis Management Acquires Significant Stake in Costain Group

Oasis Management Company Ltd., a Hong Kong-based entity, has acquired a significant financial instrument stake in Costain Group PLC, crossing the 5% threshold of voting rights. This acquisition could influence Costain’s strategic decisions and impact its market positioning, given Oasis Management’s substantial voting power.

Costain Chosen as Programme Delivery Partner for Urenco’s Infrastructure Upgrade

Costain has been selected by Urenco as the programme delivery partner for a significant infrastructure upgrade at Urenco’s Capenhurst site in Cheshire. This partnership is part of Costain’s strategic focus on growth in strong markets, aiming to deliver a more prosperous, resilient, and decarbonised UK by leveraging their expertise in critical national infrastructure.

Costain Group Reports Strong Financial Performance and Record Forward Work Position

Costain Group PLC reported a robust financial performance for the year ended December 2024, with a record increase in its forward work position to £5.4 billion. Despite a slight decline in revenue to £1,251 million, the company achieved significant growth in adjusted operating profit, operating margins, and earnings per share. The company’s strategic focus on high-quality contracts and investment in chosen markets has resulted in improved financial metrics and increased confidence in future growth prospects. The doubling of the full-year dividend reflects the company’s strong cash position and commitment to enhancing shareholder returns.

Costain Reports Strong FY24 Performance and Growth Prospects

Costain Group PLC reports a successful fiscal year 2024, with adjusted operating profit and net cash aligning with market expectations. The company has made significant strides in strategic markets, evidenced by substantial awards in the water and rail sectors and a growing Tier 1 customer base. With an increase of £1.5bn in its forward work position to £5.4bn, Costain is poised for further growth in operating profits and margins, enhancing its confidence in future performance.