LSE:COST

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Executive Summary

Costain Group PLC provides infrastructure solutions for the energy, water, transportation, and defense markets in the United Kingdom and Spain. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


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

Stable Share Price: COST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

COST

1.9%

GB Construction

0.1%

GB Market


1 Year Return

-77.4%

COST

-22.2%

GB Construction

-15.4%

GB Market

Return vs Industry: COST underperformed the UK Construction industry which returned -23.8% over the past year.

Return vs Market: COST underperformed the UK Market which returned -16.2% over the past year.


Shareholder returns

COSTIndustryMarket
7 Day2.6%1.9%0.1%
30 Day-3.5%0.08%1.1%
90 Day-31.1%-4.3%-2.0%
1 Year-77.4%-77.4%-11.3%-22.2%-12.1%-15.4%
3 Year-90.0%-90.8%-33.8%-47.5%-8.4%-19.7%
5 Year-88.0%-89.6%-22.7%-44.8%16.4%-9.7%

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

Valuation

Is Costain Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COST (£0.38) is trading below our estimate of fair value (£1.2)

Significantly Below Fair Value: COST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: COST is unprofitable, so we can't compare its PE Ratio to the GB Construction industry average.

PE vs Market: COST is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COST's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COST is good value based on its PB Ratio (0.6x) compared to the GB Construction industry average (1x).


Next Steps

Future Growth

How is Costain Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

106.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COST is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: COST is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COST's is expected to become profitable in the next 3 years.

Revenue vs Market: COST's revenue (6.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: COST's revenue (6.1% per year) is forecast to grow slower than 20% 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 (12.6%).


Next Steps

Past Performance

How has Costain Group performed over the past 5 years?

-33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COST is currently unprofitable.

Growing Profit Margin: COST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COST is unprofitable, and losses have increased over the past 5 years at a rate of 33.4% per year.

Accelerating Growth: Unable to compare COST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COST is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-13.9%).


Return on Equity

High ROE: COST has a negative Return on Equity (-47.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Costain Group's financial position?


Financial Position Analysis

Short Term Liabilities: COST's short term assets (£437.7M) exceed its short term liabilities (£334.7M).

Long Term Liabilities: COST's short term assets (£437.7M) exceed its long term liabilities (£64.4M).


Debt to Equity History and Analysis

Debt Level: COST's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: COST's debt to equity ratio has increased from 0.8% to 34.5% over the past 5 years.

Debt Coverage: COST's debt is well covered by operating cash flow (26.8%).

Interest Coverage: Insufficient data to determine if COST's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Costain Group current dividend yield, its reliability and sustainability?

5.42%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate COST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate COST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: COST is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COST's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Alex Vaughan

1.42yrs

Tenure

UK£453,214

Compensation

Mr. Alexander John Vaughan, also known as Alex, BSc (Hons), MRICS, Dip IoD, FIoD, has been the Chief Executive Officer and Director at Costain Group Plc since May 7, 2019 and has been its Member of Group E ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD595.60K) is above average for companies of similar size in the UK market ($USD354.96K).

Compensation vs Earnings: Insufficient data to compare Alex's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Vaughan
CEO, Member of Group Executive Board & Director1.42yrsUK£453.21k0.078%
£ 83.7k
Anthony Bickerstaff
CFO, Member of Group Executive Board & Director14.58yrsUK£407.67k0.17%
£ 181.4k
Martin Hunter
Group Financial Controller & Member of Group Executive Board21.5yrsno datano data
David Taylor
Group Commercial Director & Member of Group Executive Board5.75yrsno datano data
Catherine Warbrick
Group HR Director & Member of Executive Board1.08yrsno datano data
Maxine Mayhew
MD of Natural Resources Division & Member of Executive Board1.92yrsno datano data
Nathan Marsh
Chief Digital Officer & Member of Executive Board1yrno datano data
Sue Kershaw
Managing Director of Transportation Division & Member of Executive Board0.58yrno datano data
Bryony Livesey
Head of Technology and Consultancyno datano datano data
Carolyn Rich
Corporate Development & Investor Relations Directorno datano datano data
Sharon Harris
Interim General Counsel & Company Secretary0.083yrno datano data
Sara Lipscombe
Group Communications Director4.17yrsno datano data

1.7yrs

Average Tenure

Experienced Management: COST's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alexander Vaughan
CEO, Member of Group Executive Board & Director1.42yrsUK£453.21k0.078%
£ 83.7k
Anthony Bickerstaff
CFO, Member of Group Executive Board & Director14.58yrsUK£407.67k0.17%
£ 181.4k
W. L. L. Alison Wood
Independent Non-Executive Director6.67yrsUK£53.82k0.0070%
£ 7.5k
Paul Golby
Independent Non-Executive Chairman4.42yrsUK£166.46k0.043%
£ 46.1k
Jacqueline de Rojas
Independent Non-Executive Director2.92yrsUK£46.82k0.0047%
£ 5.0k
Jane Lodge
Senior Independent Director2.42yrsUK£62.82k0.024%
£ 25.8k
Bishoy Emad Gendi
Non-Executive Director0.33yrno datano data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: COST's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 153.9%.


Top Shareholders

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£107.093m
  • Shares outstanding: 274.95m
  • Website: https://www.costain.com

Number of Employees


Location

  • Costain Group PLC
  • Costain House
  • Vanwall Business Park
  • Maidenhead
  • Berkshire
  • SL6 4UB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COSTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
CSGQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
COSTlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
5JYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980

Biography

Costain Group PLC provides infrastructure solutions for the energy, water, transportation, and defense markets in the United Kingdom and Spain. It operates in two segments, Transportation and Natural Resou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 21:46
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.