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Costain Group PLCLSE:COST Stock Report

Market Cap UK£563.0m
Share Price
UK£2.07
UK£2.97
30.3% undervalued intrinsic discount
1Y45.8%
7D6.2%
1D
Portfolio Value
View

Costain Group PLC

LSE:COST Stock Report

Market Cap: UK£563.0m

Costain Group (COST) Stock Overview

Provides infrastructure solutions for the transportation, energy, water, and defense sectors in the United Kingdom. More details

COST fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends2/6

COST Community Fair Values

Create Narrative

See what 39 others think this stock is worth. Follow their fair value or set your own to get alerts.

Costain Group PLC Competitors

Price History & Performance

Summary of share price highs, lows and changes for Costain Group
Historical stock prices
Current Share PriceUK£2.07
52 Week HighUK£2.12
52 Week LowUK£1.24
Beta0.89
1 Month Change7.03%
3 Month Change13.36%
1 Year Change45.77%
3 Year Change370.45%
5 Year Change256.90%
Change since IPO-96.77%

Recent News & Updates

Narrative Update Jun 17

COST: Transport And Energy Contracts Will Support Stronger Long Term Earnings Profile

Costain Group's analyst price target has been kept broadly steady at £2.97, with analysts citing unchanged fair value, a similar forward P/E of about 19.6x, and only minor adjustments to discount rate, revenue growth and profit margin assumptions to reflect updated modelling rather than a shift in overall view. What’s in the News for Costain Group Costain Group has been selected by Transport for London as one of three contractors on the Infrastructure Improvement Framework.
Analysis Article Jun 17

Is It Time To Consider Buying Costain Group PLC (LON:COST)?

Costain Group PLC ( LON:COST ), is not the largest company out there, but it saw a decent share price growth of 20% on...
Narrative Update Jun 03

COST: Infrastructure Pipeline And Capital Returns Will Support Stronger Long Term Earnings Profile

Narrative Update on Costain Group The analyst price target for Costain Group has been lifted in line with recent Street moves, including Deutsche Bank's increase to £1.80 and Berenberg's raise to £2.40. Analysts point to updated assumptions for fair value, revenue growth, profit margins and future P/E as the key drivers.
Narrative Update May 19

COST: Higher P/E And New Indices Will Test Contract Delivery And Buybacks

Narrative Update on Costain Group Analysts have lifted their blended price target for Costain Group toward the £1.80 to £2.40 range. This reflects updated assumptions for fair value, a revised discount rate, slightly adjusted profit margin expectations and a higher forward P/E multiple.
Narrative Update May 03

COST: Infrastructure Pipeline And Buybacks Will Support Stronger Long Term Earnings Profile

Costain Group's updated fair value estimate has moved slightly lower to £2.96, even as analysts lift price targets to £1.80 and £2.40, citing refined assumptions for discount rates, revenue growth and future P/E multiples. Analyst Commentary Recent research updates point to a more constructive tone around Costain Group, with several bullish analysts lifting price targets even as the internal fair value estimate edges lower to £2.96.

Recent updates

Narrative Update Jun 17

COST: Transport And Energy Contracts Will Support Stronger Long Term Earnings Profile

Costain Group's analyst price target has been kept broadly steady at £2.97, with analysts citing unchanged fair value, a similar forward P/E of about 19.6x, and only minor adjustments to discount rate, revenue growth and profit margin assumptions to reflect updated modelling rather than a shift in overall view. What’s in the News for Costain Group Costain Group has been selected by Transport for London as one of three contractors on the Infrastructure Improvement Framework.
Analysis Article Jun 17

Is It Time To Consider Buying Costain Group PLC (LON:COST)?

Costain Group PLC ( LON:COST ), is not the largest company out there, but it saw a decent share price growth of 20% on...
Narrative Update Jun 03

COST: Infrastructure Pipeline And Capital Returns Will Support Stronger Long Term Earnings Profile

Narrative Update on Costain Group The analyst price target for Costain Group has been lifted in line with recent Street moves, including Deutsche Bank's increase to £1.80 and Berenberg's raise to £2.40. Analysts point to updated assumptions for fair value, revenue growth, profit margins and future P/E as the key drivers.
Narrative Update May 19

COST: Higher P/E And New Indices Will Test Contract Delivery And Buybacks

Narrative Update on Costain Group Analysts have lifted their blended price target for Costain Group toward the £1.80 to £2.40 range. This reflects updated assumptions for fair value, a revised discount rate, slightly adjusted profit margin expectations and a higher forward P/E multiple.
Narrative Update May 03

COST: Infrastructure Pipeline And Buybacks Will Support Stronger Long Term Earnings Profile

Costain Group's updated fair value estimate has moved slightly lower to £2.96, even as analysts lift price targets to £1.80 and £2.40, citing refined assumptions for discount rates, revenue growth and future P/E multiples. Analyst Commentary Recent research updates point to a more constructive tone around Costain Group, with several bullish analysts lifting price targets even as the internal fair value estimate edges lower to £2.96.
Narrative Update Apr 19

COST: Index Inclusions And New Contracts Will Support Future Re Rating

Narrative update The updated fair value estimate for Costain Group moves from £2.04 to £2.25 per share, reflecting analysts' higher price targets and assumptions for stronger revenue growth and a modestly higher future P/E multiple, partly offset by slightly lower profit margin expectations and a small change in the discount rate. Analyst Commentary Recent research updates on Costain Group show a cluster of higher price targets, pointing to a mix of optimism on execution and some ongoing caution about the risk and reward balance at current levels.
Narrative Update Apr 04

COST: Higher P/E Assumptions Will Test Execution Against New Contracts And Buybacks

Narrative update on Costain Group The analyst fair value estimate for Costain Group has been revised from £1.50 to £1.80, reflecting higher Street price targets around £1.80 to £2.40 and analyst comments that reference adjusted assumptions for revenue growth, profit margins, discount rate and future P/E multiples. Analyst Commentary Recent Street research shows a cluster of price target adjustments around £1.80 and £2.40, with differing views on how much upside, if any, remains from current levels.
Narrative Update Mar 21

COST: Major Infrastructure Wins Will Support Stronger Long Term Earnings Profile

Narrative Update on Costain Group The updated analyst price targets for Costain Group, including moves to £1.80 and £2.40 from previous levels of £1.50 and £2.10, support a higher fair value estimate of £2.97 as analysts factor in revised assumptions on revenue growth, margins and future P/E. Analyst Commentary Recent Street research points to a more constructive stance on Costain Group, with higher price targets clustering between £1.80 and £2.40.
Narrative Update Mar 06

COST: Index Inclusions And New Motorway Contract Will Support Re Rating

Analysts have raised their price target on Costain Group by £0.20 to reflect updated fair value assumptions, slightly higher projected revenue growth, modestly stronger profit margins, and a higher future P/E multiple. Analyst Commentary Recent Street research, including the latest £0.20 increase in the price target, gives a clearer view of how analysts are thinking about Costain Group’s valuation, execution and growth profile.
Narrative Update Feb 20

COST: Higher P/E Assumptions Will Likely Expose Contract Execution Risk

Analysts have nudged their price target on Costain Group up by £0.20, reflecting updated views on the discount rate, revenue growth, profit margin and future P/E assumptions that are broadly in line with Berenberg's recent target move. Analyst Commentary Bearish analysts are treating the higher price target as a cautious reset rather than a strong endorsement, focusing on how updated assumptions about discount rates, revenue growth and margins could still leave limited room for error.
Narrative Update Feb 06

COST: Raised Expectations On Nuclear Framework Will Likely Expose Execution Risk

Narrative update on Costain Group Analysts have lifted their price targets on Costain Group, including a £0.20 increase cited in recent research. This reflects adjusted assumptions around discount rates, revenue growth, profit margins and future P/E expectations.
Narrative Update Jan 22

COST: Extended Nuclear Framework Will Support Stronger Long Term Earnings Profile

Analysts have nudged their price target for Costain Group slightly higher to £2.15, reflecting small adjustments to assumptions on the discount rate, expected revenue growth, profit margin and future P/E multiple. What's in the News Costain secured a new five year framework contract with EDF to continue providing project controls services at eight UK nuclear power stations, extending the existing arrangement through to 2030 (Key Developments).
Narrative Update Jan 08

COST: Nuclear Contracts And Utilities Partnership Will Support Steady Longer Term Prospects

Analysts have raised their price target for Costain Group from £1.15 to £1.50, citing updated assumptions in their models. These include expectations of higher revenue growth, a slightly adjusted discount rate, modestly lower profit margins and a higher future P/E multiple.
Narrative Update Dec 14

COST: Long-Term Nuclear Framework Wins Will Support Stronger Future Outlook

Analysts have raised their price target on Costain Group from £2.15 to £2.50, citing upgraded long term revenue growth expectations that more than offset slightly higher discount rates and marginally softer margin assumptions. What's in the News Won a new five year framework extension with EDF worth approximately £75 million to provide project controls services at eight UK nuclear power stations through 2030, supporting safe operations, life extension, and future defueling and decommissioning (Client Announcements) Selected by Sellafield Ltd as Utilities Delivery Partner under its Infrastructure Delivery Partnership, a contract expected to be worth up to £1 billion over an initial nine year term with options to extend by up to six more years, focused on refurbishing and replacing critical utility distribution systems (Client Announcements) Valuation Changes Consensus Analyst Price Target has held steady at £2.15 per share, with higher growth expectations offsetting valuation headwinds.
Analysis Article Aug 23

Costain Group's (LON:COST) Dividend Will Be £0.01

The board of Costain Group PLC ( LON:COST ) has announced that it will pay a dividend of £0.01 per share on the 17th of...
Narrative Update Aug 22

GBP 54 Billion In Secured Contracts Will Ensure Future Stability

The consensus analyst price target for Costain Group has increased to £1.82, primarily reflecting an improved revenue growth outlook, with growth forecasts rising from 4.0% to 8.1% per annum. What's in the News Deutsche Bank raised its price target for Costain Group to 150 GBp from 115 GBp while maintaining a Hold rating.
Analysis Article Jun 17

Is Costain Group PLC (LON:COST) Trading At A 40% Discount?

Key Insights Using the 2 Stage Free Cash Flow to Equity, Costain Group fair value estimate is UK£2.28 Costain Group's...
Analysis Article Apr 09

Costain Group (LON:COST) Will Pay A Larger Dividend Than Last Year At £0.02

Costain Group PLC ( LON:COST ) has announced that it will be increasing its dividend from last year's comparable...
Analysis Article Mar 24

Costain Group (LON:COST) Has Announced That It Will Be Increasing Its Dividend To £0.02

The board of Costain Group PLC ( LON:COST ) has announced that it will be paying its dividend of £0.02 on the 29th of...
User avatar
New Narrative Mar 17

GBP 54 Billion In Secured Contracts Will Ensure Future Stability

A robust secured work pipeline indicates a stable, long-term revenue stream, bolstering confidence in growth and profitability.
Analysis Article Mar 13

Costain Group PLC (LON:COST) Analysts Are Pretty Bullish On The Stock After Recent Results

Costain Group PLC ( LON:COST ) last week reported its latest annual results, which makes it a good time for investors...
Analysis Article Sep 05

Costain Group PLC (LON:COST) Surges 29% Yet Its Low P/E Is No Reason For Excitement

The Costain Group PLC ( LON:COST ) share price has done very well over the last month, posting an excellent gain of...
Analysis Article Aug 22

Is There An Opportunity With Costain Group PLC's (LON:COST) 50% Undervaluation?

Key Insights Costain Group's estimated fair value is UK£2.01 based on 2 Stage Free Cash Flow to Equity Current share...
Analysis Article May 10

We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Costain Group PLC's (LON:COST) CEO For Now

Key Insights Costain Group to hold its Annual General Meeting on 16th of May Salary of UK£463.2k is part of CEO Alex...
Analysis Article Apr 03

Costain Group PLC (LON:COST) Stock Rockets 26% But Many Are Still Ignoring The Company

The Costain Group PLC ( LON:COST ) share price has done very well over the last month, posting an excellent gain of...
Analysis Article Mar 20

Investors Can Find Comfort In Costain Group's (LON:COST) Earnings Quality

The market for Costain Group PLC's ( LON:COST ) shares didn't move much after it posted weak earnings recently. Our...
Analysis Article Mar 15

Costain Group PLC Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Last week, you might have seen that Costain Group PLC ( LON:COST ) released its full-year result to the market. The...
Analysis Article Mar 08

Return Trends At Costain Group (LON:COST) Aren't Appealing

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Analysis Article Jan 12

Is There An Opportunity With Costain Group PLC's (LON:COST) 32% Undervaluation?

Key Insights Costain Group's estimated fair value is UK£1.06 based on 2 Stage Free Cash Flow to Equity Costain Group is...
Analysis Article Nov 21

Costain Group's (LON:COST) Returns Have Hit A Wall

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Analysis Article Jun 13

Return Trends At Costain Group (LON:COST) Aren't Appealing

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...
Analysis Article Jun 22

Is Costain Group (LON:COST) Weighed On By Its Debt Load?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article Dec 14

Costain Group (LON:COST) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article Sep 02

Costain Group (LON:COST) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

Costain Group PLC's ( LON:COST ) robust earnings report didn't manage to move the market for its stock. Our analysis...
Analysis Article Mar 24

Is Costain Group (LON:COST) Weighed On By Its Debt Load?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

COSTGB ConstructionGB Market
7D6.2%2.5%-1.3%
1Y45.8%39.7%17.3%

Return vs Industry: COST exceeded the UK Construction industry which returned 40.5% over the past year.

Return vs Market: COST exceeded the UK Market which returned 17.7% over the past year.

Price Volatility

Is COST's price volatile compared to industry and market?
COST volatility
COST Average Weekly Movement4.4%
Construction Industry Average Movement3.9%
Market Average Movement5.5%
10% most volatile stocks in GB Market11.2%
10% least volatile stocks in GB Market3.0%

Stable Share Price: COST has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: COST's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18653,266Alex Vaughanwww.costain.com

Costain Group PLC provides infrastructure solutions for the transportation, energy, water, and defense sectors in the United Kingdom. The company operates in two segments, Transportation and Natural Resources. It operates in the road, rail, and integrated transport markets, as well as in the water, energy, defense, and nuclear energy markets.

Costain Group PLC Fundamentals Summary

How do Costain Group's earnings and revenue compare to its market cap?
COST fundamental statistics
Market capUK£562.97m
Earnings (TTM)UK£37.30m
Revenue (TTM)UK£1.05b
14.8x
P/E Ratio
0.5x
P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
COST income statement (TTM)
RevenueUK£1.05b
Cost of RevenueUK£931.90m
Gross ProfitUK£113.80m
Other ExpensesUK£76.50m
EarningsUK£37.30m

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

Aug 13, 2026

Earnings per share (EPS)0.14
Gross Margin10.88%
Net Profit Margin3.57%
Debt/Equity Ratio0%

How did COST perform over the long term?

See historical performance and comparison

Dividends

2.0%
Current Dividend Yield
30%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/19 14:26
End of Day Share Price 2026/06/19 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Costain Group PLC is covered by 14 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harry GoadBerenberg
Edward Hugh PrestBerenberg
Ian McInallyCavendish