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Costain Group PLC (GB:COST)
LSE:COST
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Costain (COST) AI Stock Analysis

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GB:COST

Costain

(LSE:COST)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
170.00p
▲(10.25% Upside)
Costain's overall stock score is driven by its stable financial performance and positive technical indicators. The company's strong balance sheet and effective debt management are significant strengths. However, modest margins and declining cash flow generation are areas for improvement. The stock's valuation is fair, with potential for moderate returns.

Costain (COST) vs. iShares MSCI United Kingdom ETF (EWC)

Costain Business Overview & Revenue Model

Company DescriptionCostain 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. The Natural Resources segment operates in the water, energy, and defense markets. It offers future shaping strategic consultancy, consultancy and advisory, digital technology, asset optimization, and complex program delivery solutions and services. The company was founded in 1865 and is headquartered in Maidenhead, the United Kingdom.
How the Company Makes MoneyCostain generates revenue primarily through the provision of engineering and construction services, which include project management, consultancy, and specialized technical services. The company engages in long-term contracts with public and private sector clients, delivering large-scale infrastructure projects. Key revenue streams include fixed-price contracts, cost-reimbursable contracts, and framework agreements with major clients in sectors such as transportation, water, and energy. Additionally, strategic partnerships and collaborations with other firms and governmental bodies enhance Costain's ability to secure projects and expand its market reach, contributing significantly to its earnings.

Costain Financial Statement Overview

Summary
Costain demonstrates a stable financial outlook with improvements in profitability and a strong balance sheet. The company has effectively managed its debt, maintaining low leverage while achieving a healthy ROE. Despite the positive income trajectory, the margins remain modest, and cash flow generation has seen a decline, indicating areas for future enhancement.
Income Statement
75
Positive
Costain has shown a positive trajectory in its income statement metrics over the recent years. The Gross Profit Margin for 2024 is approximately 8.26%, while the Net Profit Margin sits at 2.44%. The company has managed a slight revenue growth from 2023 to 2024, indicating stability. Notably, the EBIT Margin is 2.49%, and the EBITDA Margin is 3.71%, reflecting operational efficiency improvements. However, the margins are relatively low compared to industry standards, suggesting room for further profitability enhancements.
Balance Sheet
80
Positive
The balance sheet reveals a strong equity position with an Equity Ratio of 43.06% in 2024, supported by a manageable Debt-to-Equity Ratio of 0.11. These metrics indicate a solid capital structure with low leverage, which reduces financial risk. Return on Equity (ROE) is healthy at 12.98%, showcasing effective use of shareholders' equity to generate profits. The company's financial stability is robust, providing a strong foundation for future growth.
Cash Flow
70
Positive
Cash flow analysis shows a decline in Free Cash Flow from 2023 to 2024, with a significant Free Cash Flow of £37.2M in 2024. The Operating Cash Flow to Net Income Ratio is 1.4, indicating solid cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is 1.22, reflecting a decrease in cash flow efficiency compared to previous years. The company needs to focus on improving its free cash flow generation to sustain strong liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.14B1.25B1.33B1.42B1.14B978.40M
Gross Profit110.60M103.30M103.50M82.20M39.10M-59.10M
EBITDA48.10M52.60M50.90M47.20M4.60M-65.10M
Net Income31.30M30.60M22.10M25.90M-5.80M-78.00M
Balance Sheet
Total Assets535.30M547.20M468.60M482.20M532.40M489.90M
Cash, Cash Equivalents and Short-Term Investments144.90M158.50M164.40M123.80M159.40M150.90M
Total Debt23.30M25.80M24.30M29.50M66.20M80.10M
Total Liabilities291.80M311.50M249.20M271.00M333.40M333.40M
Stockholders Equity243.50M235.70M219.40M211.20M199.00M156.50M
Cash Flow
Free Cash Flow12.10M37.20M55.60M13.60M27.30M-50.90M
Operating Cash Flow15.90M42.70M55.70M14.10M29.50M-46.80M
Investing Cash Flow-5.00M-9.00M-100.00K-1.30M-2.20M4.50M
Financing Cash Flow-27.70M-25.60M-15.00M-48.40M-18.80M12.90M

Costain Technical Analysis

Technical Analysis Sentiment
Positive
Last Price154.20
Price Trends
50DMA
138.54
Positive
100DMA
145.03
Positive
200DMA
126.14
Positive
Market Momentum
MACD
4.31
Positive
RSI
66.83
Neutral
STOCH
63.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:COST, the sentiment is Positive. The current price of 154.2 is above the 20-day moving average (MA) of 149.85, above the 50-day MA of 138.54, and above the 200-day MA of 126.14, indicating a bullish trend. The MACD of 4.31 indicates Positive momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 63.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:COST.

Costain Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
£911.12M16.8610.87%3.34%4.40%31.59%
£2.19B14.3224.19%2.54%6.93%21.50%
£732.99M16.1922.62%2.09%3.23%2.00%
£413.94M13.2113.21%1.95%-12.98%5.51%
£3.28B18.7616.34%1.92%9.97%-15.46%
£499.38M15.0927.48%3.34%5.78%-8.32%
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:COST
Costain
154.20
47.10
43.98%
GB:BBY
Balfour Beatty
674.00
249.34
58.72%
GB:GFRD
Galliford Try
509.00
130.42
34.45%
GB:KIE
Kier Group plc
215.50
81.50
60.82%
GB:MGNS
Morgan Sindall
4,595.00
974.94
26.93%
GB:RNWH
Renew Holdings plc
936.00
-122.37
-11.56%

Costain Corporate Events

Business Operations and StrategyDividends
Costain Group PLC Announces Scrip Dividend Option for Shareholders
Neutral
Oct 14, 2025

Costain Group PLC announced that shareholders have opted to receive 111,520 ordinary shares in lieu of cash for their interim dividend for the year ending 31 December 2025. This decision follows the approval of the scrip dividend scheme at the 2025 Annual General Meeting. The new shares will be admitted to the UK Listing Authority’s Official List and traded on the London Stock Exchange starting 17 October 2025, aligning with the company’s strategic financial management and offering flexibility to its investors.

The most recent analyst rating on (GB:COST) stock is a Hold with a £145.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and Strategy
Costain Group Grants Sharesave Options to Employees
Neutral
Oct 13, 2025

Costain Group PLC has announced the granting of options over 3,071,313 ordinary shares under its 2022 Sharesave Plan to eligible employees, including key executives. The options, with an exercise price of £1.02 per share, are set to vest on 1 December 2028, potentially impacting the company’s employee retention and motivation strategies.

The most recent analyst rating on (GB:COST) stock is a Hold with a £145.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and Strategy
Costain Secures £1bn Contract with Sellafield for Utilities Delivery
Positive
Oct 13, 2025

Costain Group PLC has been selected as the Utilities Delivery Partner for Sellafield Ltd’s Infrastructure Delivery Partnership, a contract valued at up to £1bn. This long-term agreement, which includes refurbishing and replacing utility systems to support Sellafield’s decommissioning program, highlights Costain’s strategic focus on building strong relationships and its integral role in the civil nuclear energy market, reinforcing its position as a key player in the UK’s nuclear decommissioning efforts.

The most recent analyst rating on (GB:COST) stock is a Hold with a £145.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Dividends
Costain Announces Scrip Dividend Reference Price for 2025
Neutral
Sep 18, 2025

Costain Group PLC has announced the Scrip Dividend Reference Price for its interim dividend for the year ending December 31, 2025, set at 127.28 pence per ordinary share. This price is calculated based on the average market quotations of the company’s shares over five consecutive days starting from the ex-dividend date. Shareholders who wish to receive the scrip dividend must submit a mandate form by September 26, 2025. The interim dividend, including the scrip dividend, will be paid on October 17, 2025, to shareholders on record as of September 12, 2025.

The most recent analyst rating on (GB:COST) stock is a Buy with a £175.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Regulatory Filings and Compliance
Costain Group PLC Updates Share Capital Structure
Neutral
Sep 1, 2025

Costain Group PLC announced that as of August 31, 2025, its issued share capital consists of 266,603,375 ordinary shares, with each share granting one vote. This update aligns with the FCA’s Disclosure Guidance and Transparency Rules, allowing shareholders to accurately calculate their interests in the company. This announcement ensures transparency and aids stakeholders in maintaining compliance with regulatory requirements.

The most recent analyst rating on (GB:COST) stock is a Hold with a £142.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Costain Directors Increase Shareholdings, Signaling Confidence in Growth
Positive
Aug 28, 2025

Costain Group PLC announced that its Non-Executive Chair, Kate Rock, and Non-Executive Director, Amanda Fisher, have purchased 15,000 and 10,000 Ordinary Shares respectively, reflecting their confidence in the company’s future prospects. These transactions, following the recent publication of the company’s half-year results, indicate a strong alignment of interests between the directors and shareholders, suggesting optimism about the group’s growth potential.

The most recent analyst rating on (GB:COST) stock is a Hold with a £142.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Other
Costain’s Non-Executive Chair Increases Shareholding
Positive
Aug 22, 2025

Kate Rock, the Non-Executive Chair of Costain Group PLC, has purchased 10,000 ordinary shares of the company at £1.37501 per share, increasing her total shareholding to 110,000 shares, which represents 0.04% of the company’s issued share capital. This transaction reflects confidence in the company’s prospects and may positively influence stakeholder perception of Costain’s market positioning.

The most recent analyst rating on (GB:COST) stock is a Hold with a £142.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Costain Group Reports Strong H1 2025 Performance Amid Strategic Growth
Positive
Aug 20, 2025

Costain Group PLC reported strong financial performance for the first half of 2025, with an increase in operating profit and margin despite a decrease in revenue. The company is confident in achieving its operating margin target for the fiscal year 2025, supported by a robust forward work position of £5.6 billion and high bidding activity levels. The government’s new Infrastructure Strategy and regulatory investments in key sectors provide significant growth opportunities for Costain, enhancing its market positioning and shareholder value.

The most recent analyst rating on (GB:COST) stock is a Buy with a £189.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Stock Buyback
Costain Completes £10 Million Share Buyback Program
Positive
Aug 18, 2025

Costain Group PLC has completed its £10 million share buyback program, purchasing a total of 6,395,100 ordinary shares for cancellation. This move reduces the company’s total number of shares in issue to 266,603,375, potentially enhancing shareholder value and indicating a strong financial position.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Strategy
Positive
Aug 15, 2025

Costain Group PLC has announced the purchase of 167,773 of its ordinary shares as part of its ongoing share buyback program. The shares, bought at a weighted average price of 163.24 pence, will be canceled, reducing the total number of shares in issue to 266,829,275. This move is part of Costain’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Program
Positive
Aug 14, 2025

Costain Group PLC has announced the purchase of 179,220 of its own ordinary shares as part of its ongoing share buyback program. This move is part of a broader strategy to optimize the company’s capital structure, potentially increasing shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Program
Positive
Aug 13, 2025

Costain Group PLC has announced the purchase and cancellation of 173,096 of its ordinary shares as part of its ongoing share buyback program. This move is part of a larger strategy to optimize the company’s capital structure, with a total of 5,822,207 shares purchased for cancellation to date, reducing the total number of shares in issue to 267,176,268. This initiative is likely to impact the company’s financial metrics positively and reflects a commitment to returning value to shareholders.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Stock Buyback
Costain Advances Share Buyback Programme with Latest Purchase
Positive
Aug 11, 2025

Costain Group PLC has announced the purchase of 169,296 of its ordinary shares as part of its ongoing share buyback programme. This move, which brings the total number of shares purchased for cancellation to over 5.4 million, aims to optimize the company’s capital structure and potentially enhance shareholder value. The cancellation of these shares will reduce the total number of shares in issue, which may impact the company’s stock market performance and investor perception.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Stock Buyback
Costain Group Advances Share Buyback Programme
Positive
Aug 8, 2025

Costain Group PLC, a leading UK-based infrastructure solutions company, announced the purchase and cancellation of 169,780 of its own ordinary shares as part of its ongoing share buyback programme. This transaction, conducted through Panmure Liberum on the London Stock Exchange, is part of a larger initiative that has seen the company buy back a total of 5,316,814 shares. The move is expected to reduce the number of shares in circulation, potentially increasing the value of remaining shares and reflecting the company’s commitment to returning value to shareholders.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Program with Latest Purchase
Positive
Aug 7, 2025

Costain Group PLC announced the purchase and cancellation of 154,884 of its ordinary shares as part of its ongoing share buyback program. This move is part of a larger strategy to optimize the company’s capital structure, having already cancelled over 5 million shares, potentially increasing shareholder value and impacting its market positioning.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Programme
Positive
Aug 6, 2025

Costain Group PLC has announced the purchase and cancellation of 163,485 of its ordinary shares as part of its ongoing share buyback programme. This move, which aligns with the company’s strategic financial management, reduces the total number of shares in issue to 268,006,325, potentially enhancing shareholder value and reflecting confidence in the company’s market position.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Executes Share Buyback to Optimize Capital Structure
Positive
Aug 5, 2025

Costain Group PLC has executed a share buyback transaction, purchasing 123,653 of its ordinary shares at an average price of 163.02 pence per share. This transaction is part of the company’s ongoing buyback program, which has seen a total of 4,828,665 shares repurchased for cancellation, reducing the total number of shares in issue to 268,169,810. This strategic move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Stock Buyback
Costain Group Advances Share Buyback Program with Latest Purchase
Positive
Aug 4, 2025

Costain Group PLC has announced the purchase and cancellation of 166,244 ordinary shares as part of its ongoing share buyback program. This transaction, executed through Panmure Liberum, is part of a larger initiative that has seen the company cancel a total of 4,705,012 shares, reducing the total number of shares in issue to 268,293,463. The buyback program is designed to optimize the company’s capital structure, potentially increasing shareholder value and demonstrating confidence in the company’s future performance.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Stock BuybackRegulatory Filings and Compliance
Costain Group Updates on Total Voting Rights and Share Capital
Neutral
Aug 1, 2025

Costain Group PLC has announced its total voting rights and capital as of July 31, 2025, with an issued share capital comprising 269,649,530 ordinary shares, each carrying one vote. This update is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules, reflecting all shares bought back and canceled to date.

The most recent analyst rating on (GB:COST) stock is a Hold with a £105.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Programme
Positive
Jul 31, 2025

Costain Group PLC has announced the purchase and cancellation of 361,774 of its ordinary shares as part of its ongoing share buyback programme. This move, which is part of a larger strategy to repurchase a total of 4,249,340 shares, reduces the company’s total number of shares in issue to 268,749,135. The buyback is expected to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Group Advances Share Buyback Program with Latest Share Purchase
Positive
Jul 30, 2025

Costain Group PLC announced the purchase and cancellation of 269,339 ordinary shares as part of its ongoing share buyback program. This move is part of a broader strategy to optimize the company’s capital structure and potentially enhance shareholder value, reflecting Costain’s commitment to maintaining a robust financial position.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Stock Buyback
Costain Group Advances Share Buyback Program
Positive
Jul 29, 2025

Costain Group PLC announced the purchase of 269,282 of its own ordinary shares as part of its ongoing share buyback program. This transaction, conducted on the London Stock Exchange, is part of a larger initiative that has seen the company buy back a total of 3,618,227 shares for cancellation. The move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Financial DisclosuresShareholder Meetings
Costain Group Announces Investor Q&A for 2025 Half Year Results
Neutral
Jul 29, 2025

Costain Group PLC announced an investor Q&A session for their 2025 Half Year Results, to be hosted by CEO Alex Vaughan and CFO Helen Willis on August 21, 2025. This session, accessible via Investor Meet Company, invites existing and potential shareholders to engage and submit questions, reflecting Costain’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Business Operations and StrategyStock Buyback
Costain Completes First Tranche of Share Buyback Program
Positive
Jul 28, 2025

Costain Group PLC has announced the completion of the first tranche of its share buyback program, purchasing 63,883 ordinary shares on the London Stock Exchange. The company has now bought back a total of 3,348,945 shares for cancellation, reducing its total number of shares in issue to 269,649,530. This move is part of a strategic effort to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (GB:COST) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025