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COST

Costain Group LSE:COST Stock Report

Last Price

UK£0.42

Market Cap

UK£116.9m

7D

0.1%

1Y

-27.0%

Updated

27 Sep, 2022

Data

Company Financials +
COST fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends0/6

COST Stock Overview

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

Costain Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Costain Group
Historical stock prices
Current Share PriceUK£0.42
52 Week HighUK£0.61
52 Week LowUK£0.32
Beta2.77
1 Month Change3.66%
3 Month Change20.48%
1 Year Change-26.98%
3 Year Change-73.00%
5 Year Change-90.44%
Change since IPO-99.87%

Recent News & Updates

Jun 22
Is Costain Group (LON:COST) Weighed On By Its Debt Load?

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...

Shareholder Returns

COSTGB ConstructionGB Market
7D0.1%-4.6%-3.1%
1Y-27.0%-18.2%-14.5%

Return vs Industry: COST underperformed the UK Construction industry which returned -18.2% over the past year.

Return vs Market: COST underperformed the UK Market which returned -14.6% over the past year.

Price Volatility

Is COST's price volatile compared to industry and market?
COST volatility
COST Average Weekly Movement7.7%
Construction Industry Average Movement4.4%
Market Average Movement5.3%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: COST is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: COST's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
18653,500Alex Vaughanhttps://www.costain.com

Costain Group PLC provides smart infrastructure solutions for the energy, water, transportation, and defense markets in the United Kingdom. The company operates through two segments, Transportation and Natural Resources. The Transportation segment operates in the road, rail, and integrated transport markets.

Costain Group Fundamentals Summary

How do Costain Group's earnings and revenue compare to its market cap?
COST fundamental statistics
Market CapUK£116.91m
Earnings (TTM)-UK£6.20m
Revenue (TTM)UK£1.24b

0.1x

P/S Ratio

-18.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COST income statement (TTM)
RevenueUK£1.24b
Cost of RevenueUK£1.20b
Gross ProfitUK£47.00m
Other ExpensesUK£53.20m
Earnings-UK£6.20m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.023
Gross Margin3.78%
Net Profit Margin-0.50%
Debt/Equity Ratio16.4%

How did COST perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is COST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for COST?

Other financial metrics that can be useful for relative valuation.

COST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.04x
Enterprise Value/EBITDA-9.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does COST's PS Ratio compare to its peers?

COST PS Ratio vs Peers
The above table shows the PS ratio for COST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
GFRD Galliford Try Holdings
0.1x6.5%UK£173.6m
NEXS Nexus Infrastructure
0.5x13.1%UK£70.7m
SFR Severfield
0.4x5.7%UK£160.3m
SMJ J. Smart (Contractors)
6.7xn/aUK£65.6m
COST Costain Group
0.09x3.5%UK£116.9m

Price-To-Sales vs Peers: COST is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does COST's PE Ratio compare vs other companies in the European Construction Industry?

Price-To-Sales vs Industry: COST is good value based on its Price-To-Sales Ratio (0.1x) compared to the European Construction industry average (0.4x)


Price to Sales Ratio vs Fair Ratio

What is COST's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

COST PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.09x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: COST is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).


Share Price vs Fair Value

What is the Fair Price of COST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: COST (£0.43) is trading below our estimate of fair value (£1.34)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


47.7%

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 (0.9%).

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 is expected to become profitable in the next 3 years.

Revenue vs Market: COST's revenue (3.5% per year) is forecast to grow slower than the UK market (4.6% per year).

High Growth Revenue: COST's revenue (3.5% 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 (9.6%).


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Past Performance

How has Costain Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-47.5%

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 47.5% 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 (17.7%).


Return on Equity

High ROE: COST has a negative Return on Equity (-2.83%), as it is currently unprofitable.


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Financial Health

How is Costain Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: COST's short term assets (£335.2M) exceed its short term liabilities (£253.1M).

Long Term Liabilities: COST's short term assets (£335.2M) exceed its long term liabilities (£49.6M).


Debt to Equity History and Analysis

Debt Level: COST has more cash than its total debt.

Reducing Debt: COST's debt to equity ratio has reduced from 64.1% to 16.4% over the past 5 years.

Debt Coverage: COST's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.20%

Forecast Dividend Yield

Dividend Yield vs Market

Costain Group Dividend Yield vs Market
How does Costain Group dividend yield compare to the market?
SegmentDividend Yield
Company (Costain Group)0%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Construction)4.0%
Analyst forecast in 3 Years (Costain Group)5.2%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as COST has not reported any payouts.


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Management

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

1.4yrs

Average management tenure


CEO

Alex Vaughan

15.92yrs

Tenure

UK£980,793

Compensation

Mr. Alexander John Vaughan, also known as Alex, BSc (Hons), FRICS, 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...


CEO Compensation Analysis

Alex Vaughan's Compensation vs Costain Group Earnings
How has Alex Vaughan's remuneration changed compared to Costain Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-UK£6m

Mar 31 2022n/an/a

-UK£6m

Dec 31 2021UK£981kUK£431k

-UK£6m

Sep 30 2021n/an/a

UK£200k

Jun 30 2021n/an/a

UK£6m

Mar 31 2021n/an/a

-UK£36m

Dec 31 2020UK£448kUK£393k

-UK£78m

Sep 30 2020n/an/a

-UK£82m

Jun 30 2020n/an/a

-UK£85m

Mar 31 2020n/an/a

-UK£44m

Dec 31 2019UK£453kUK£275k

-UK£3m

Compensation vs Market: Alex's total compensation ($USD1.05M) is above average for companies of similar size in the UK market ($USD326.24K).

Compensation vs Earnings: Alex's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: COST's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: COST's board of directors are not considered experienced ( 2 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

LSE:COST Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
09 Nov 21BuyUK£11,158Neil CrockettIndividual20,000UK£0.56
01 Nov 21BuyUK£4,362Alexander VaughanIndividual8,093UK£0.54

Ownership Breakdown

What is the ownership structure of COST?
Owner TypeNumber of SharesOwnership Percentage
Public Companies343,1460.1%
Employee Share Scheme474,0870.2%
Individual Insiders990,1700.4%
VC/PE Firms15,466,8125.6%
Private Companies42,537,82415.5%
General Public55,589,01620.2%
Institutions159,683,68658.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 70.87% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
15.15%
ASGC Construction LLC
41,666,666£17.7m0%no data
9.62%
J O Hambro Capital Management Limited
26,472,381£11.3m0.65%0.07%
8.01%
Ennismore Fund Management Limited
22,022,829£9.4m0%3.17%
5.62%
Gresham House Asset Management Limited
15,466,812£6.6m0%0.79%
4.92%
Amundi Asset Management
13,545,855£5.8m-0.59%no data
3.69%
Kleinwort Benson Private Bank Limited, Asset Management Arm
10,147,474£4.3m0%1.66%
3.33%
Jupiter Fund Management Plc
9,146,777£3.9m0%0.01%
3.02%
Artemis Investment Management LLP
8,316,918£3.5m0%0.02%
2.63%
HBOS Investment Fund Managers Limited
7,240,399£3.1m-9.93%0.03%
1.99%
Barclays Bank PLC, Wealth and Investment Management Division
5,471,625£2.3m-4.27%0.03%
1.58%
Legal & General Investment Management Limited
4,358,560£1.9m-2.11%no data
1.34%
A J Bell Holdings Limited, Asset Management Arm
3,691,398£1.6m-3.21%0.02%
1.27%
Charles Stanley & Co. Ltd, Asset Management Arm
3,486,165£1.5m-6.41%0.02%
1.05%
BlackRock, Inc.
2,886,134£1.2m33.4%no data
1.04%
HSBC Global Asset Management (UK) Limited
2,874,216£1.2m-0.84%no data
0.95%
Ninety One UK Limited
2,625,900£1.1m0%no data
0.91%
Close Asset Management Limited
2,504,726£1.1m2.29%0.01%
0.73%
Bank Hapoalim B.M., Banking and Securities Investments
1,995,724£848.2k0.74%0.22%
0.71%
Fleming Family & Partners Ltd.
1,941,190£825.0k0%0.03%
0.7%
Teviot Partners LLP
1,937,142£823.3k-7.79%0.64%
0.66%
Societe Generale Group, Banking Investments
1,803,237£766.4k0%0.01%
0.51%
The Vanguard Group, Inc.
1,406,731£597.9k-9.04%no data
0.49%
Sun Life Global Investments Inc.
1,343,458£571.0k0%0.03%
0.48%
Dimensional Fund Advisors LP
1,308,060£555.9k11.55%no data
0.47%
Northern Trust Global Investments
1,279,344£543.7k0%no data

Company Information

Costain Group PLC's 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
  • Implied Market Cap: UK£116.911m
  • Shares outstanding: 275.08m
  • 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
CTNG.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.