Costain Group
Market Cap
UK£187.8m
Last Updated
2019/10/22 21:26 UTC
Data Sources
Company Financials +
Executive Summary
Costain Group PLC provides engineering solutions for various energy, water, and transportation infrastructures in the United Kingdom, Spain, and internationally.
Snowflake
Fundamentals
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Costain Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-0.6%
COST
1.0%
GB Construction
0.08%
GB Market
1 Year Return
-53.1%
COST
-27.9%
GB Construction
3.5%
GB Market
Return vs Industry: COST underperformed the UK Construction industry which returned -27.9% over the past year.
Return vs Market: COST underperformed the UK Market which returned 3.5% over the past year.
Shareholder returns
| COST | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 1.0% | 0.08% |
| 30 Day | 7.3% | 0.2% | -1.3% |
| 90 Day | 2.0% | 4.9% | -2.2% |
| 1 Year | -50.7%-53.1% | -25.1%-27.9% | 9.0%3.5% |
| 3 Year | -46.2%-52.0% | -29.8%-39.2% | 18.1%3.1% |
| 5 Year | -28.3%-40.0% | -9.4%-32.1% | 36.2%5.3% |
Price Volatility Vs. Market
How volatile is Costain Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Consider Costain Group PLC (LON:COST)?3 weeks ago | Simply Wall St
Does Costain Group PLC’s (LON:COST) ROCE Reflect Well On The Business?1 month ago | Simply Wall St
Costain Group PLC (LON:COST) Has A ROE Of 14%Valuation
Is Costain Group undervalued compared to its fair value and its price relative to the market?
20.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: COST (£1.73) is trading below our estimate of fair value (£2.19)
Significantly Below Fair Value: COST is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: COST is good value based on its PE Ratio (7.7x) compared to the Construction industry average (9.6x).
PE vs Market: COST is good value based on its PE Ratio (7.7x) compared to the UK market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: COST is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: COST is good value based on its PB Ratio (1x) compared to the GB Construction industry average (1.3x).
Next Steps
Future Growth
How is Costain Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
12.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: COST's forecast earnings growth (12.2% per year) is above the savings rate (1.2%).
Earnings vs Market: COST's earnings (12.2% per year) are forecast to grow slower than the UK market (12.4% per year).
High Growth Earnings: COST's earnings are forecast to grow, but not significantly.
Revenue vs Market: COST's revenue is expected to decline over the next 3 years (-1% per year).
High Growth Revenue: COST's revenue is forecast to decline over the next 3 years (-1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: COST's Return on Equity is forecast to be low in 3 years time (15.6%).
Next Steps
Past Performance
How has Costain Group performed over the past 5 years?
11.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: COST's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: COST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: COST had negative earnings growth (-32.6%) over the past year, making it difficult to compare to the Construction industry average (-9.7%).
Return on Equity
High ROE: COST's Return on Equity (13.6%) is considered low.
Return on Assets
ROA vs Industry: COST's Return on Assets is below or equal to the Construction industry average last year.
Return on Capital Employed
ROCE Improving: COST has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Costain Group's financial position?
Financial Position Analysis
Short Term Liabilities: COST's short term assets (£443.4M) exceeds its short term liabilities (£328.6M)
Long Term Liabilities: COST's short term assets (443.4M) exceeds its long term liabilities (76.6M)
Debt to Equity History and Analysis
Debt Level: COST's debt to equity ratio (50.3%) is considered high
Reducing Debt: COST's debt to equity ratio has increased from 1.1% to 50.3% over the past 5 years.
Debt Coverage: COST's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: COST's interest payments on its debt are well covered by EBIT (19.3x coverage).
Balance Sheet
Inventory Level: COST has a low level of unsold assets or inventory.
Debt Coverage by Assets: COST's debt is covered by short term assets (assets are 4.943140x debt).
Next Steps
Dividend
What is Costain Group's current dividend yield, its reliability and sustainability?
7.96%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: COST's dividend (7.96%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).
High Dividend: COST's dividend (7.96%) is in the top 25% of dividend payers in the UK market (5.37%)
Stable Dividend: COST's dividend payments have been volatile in the past 10 years.
Growing Dividend: COST's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61%), COST's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: COST's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).
Next Steps
Management
What is the CEO of Costain Group's salary, the management and board of directors tenure and is there insider trading?
0.9yrs
Average management tenure
CEO
Alex Vaughan 0
0.4yrs
Tenure
Mr. Alexander John Vaughan, also known as Alex, BSc (Hons), MRICS, Dip IoD, FIoD, has been the Chief Executive officer at Costain Group Plc since May 7, 2019 and has been its Member of Group Executive Boar ...
Management Age and Tenure
0.9yrs
Average Tenure
51yo
Average Age
Experienced Management: COST's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Age and Tenure
4.4yrs
Average Tenure
60yo
Average Age
Experienced Board: COST's board of directors are considered experienced (4.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 1,201 |
| Max Price | UK£3.33 |
Ownership Breakdown
Management Team
Alex Vaughan
CEO & Member of Group Executive Board
- Tenure: 0.4yrs
Martin Hunter
Group Financial Controller & Member of Group Executive Board
- Tenure: 20.5yrs
Tony Bickerstaff (55yo)
CFO, Member of Group Executive Board & Director
- Tenure: 13.6yrs
- Compensation: UK£1.04m
Darren James (51yo)
COO & Member of Executive Board
- Tenure: 0.8yrs
Tracey Wood (50yo)
General Counsel
- Tenure: 11.3yrs
David Taylor
Group Commercial Director & Member of Group Executive Board
- Tenure: 4.8yrs
Catherine Warbrick
Group HR Director & Member of Executive Board
- Tenure: 0.08yrs
Bryony Livesey
Head of Technology and Consultancy
- Tenure: 0yrs
Maxine Mayhew
MD of Natural Resources Division & Member of Executive Board
- Tenure: 0.9yrs
Ian Parker
MD of Transportation & Member of Executive Board
- Tenure: 0.4yrs
Board Members
David McManus (66yo)
Independent Non-Executive Director
- Tenure: 5.4yrs
- Compensation: UK£45.84k
W. L. L. Alison Wood (56yo)
Independent Non-Executive Director
- Tenure: 5.7yrs
- Compensation: UK£52.84k
Paul Golby (68yo)
Non-Executive Chairman
- Tenure: 3.4yrs
- Compensation: UK£163.00k
Jacqueline de Rojas (56yo)
Independent Non-Executive Director
- Tenure: 1.9yrs
- Compensation: UK£45.84k
Tony Bickerstaff (55yo)
CFO, Member of Group Executive Board & Director
- Tenure: 13.6yrs
- Compensation: UK£1.04m
Jane Lodge (64yo)
Senior Independent Director
- Tenure: 1.4yrs
- Compensation: UK£59.55k
Company Information
Costain Group PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Costain Group PLC
- Ticker: COST
- Exchange: LSE
- Founded: 1865
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: UK£187.763m
- Shares outstanding: 108.28m
- Website: https://www.costain.com
Number of Employees
Location
- Costain Group PLC
- Costain House
- Vanwall Business Park
- Maidenhead
- Berkshire
- SL6 4UB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| COST | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| COSTl | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
Biography
Costain Group PLC provides engineering solutions for various energy, water, and transportation infrastructures in the United Kingdom, Spain, and internationally. It operates in two segments, Infrastructure ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 21:26 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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 here.