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Costain
(LSE:COST)
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Rating:75Outperform
Price Target:
292.00 p
▲(26.68% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving profitability, strong balance-sheet positioning, and solid cash-flow quality, which indicate a materially healthier business than in 2020–2021. Technicals add support as the stock trades above key moving averages with positive MACD and neutral momentum. Valuation is reasonable but not especially cheap, while the multi-year revenue decline remains the key offsetting risk to the otherwise improving fundamentals.
Positive Factors
Profitability turnaround
The shift from losses in 2020–2021 to sustained profitability through 2025 indicates a meaningful operational turnaround. Improving gross and net margins suggest better project execution and earnings conversion, creating a stronger base for continued profitability over the next several quarters.
Negative Factors
Persistent revenue contraction
A three-year decline in revenue is a durable challenge because it can limit scale, reduce operating leverage, and constrain the company’s ability to build on its margin recovery. If contraction continues, improving profitability may not translate into sustained earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
The shift from losses in 2020–2021 to sustained profitability through 2025 indicates a meaningful operational turnaround. Improving gross and net margins suggest better project execution and earnings conversion, creating a stronger base for continued profitability over the next several quarters.
Read all positive factors
Costain (COST) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£673.20M
Dividend Yield2.02%
Average Volume (3M)1.64M
Price to Earnings (P/E)17.9
Beta (1Y)0.67
Revenue Growth-6.49%
EPS Growth22.41%
CountryUK
Employees3,266
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.14
Shares Outstanding260,930,900
10 Day Avg. Volume1,287,300
30 Day Avg. Volume1,635,843
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.66
Price to Sales (P/S)0.41
P/FCF Ratio8.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£275.00Price Target Upside19.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.15
Revenue Forecast (FY)£1.24B
Costain Business Overview & Revenue Model
Company Description
Costain Group PLC, established in 1865 and headquartered in Maidenhead, UK, specializes in providing intelligent infrastructure solutions. Serving the United Kingdom's energy, water, transportation, and defense markets, the company operates throug...
How the Company Makes Money
Costain primarily makes money by delivering contracted infrastructure services for clients, earning revenue from project and program work across design, engineering, construction, and long-term support. Its key revenue streams typically include: (...
Costain Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.05B | 1.25B | 1.33B | 1.42B | 1.14B |
| Gross Profit | 114.50M | 112.70M | 103.30M | 103.50M | 82.20M | 39.10M |
| EBITDA | 62.30M | 61.00M | 52.60M | 50.90M | 47.20M | 4.60M |
| Net Income | 38.00M | 37.30M | 30.60M | 22.10M | 25.90M | -5.80M |
Balance Sheet | ||||||
| Total Assets | 583.10M | 561.90M | 547.20M | 468.60M | 482.20M | 532.40M |
| Cash, Cash Equivalents and Short-Term Investments | 202.70M | 215.30M | 158.50M | 164.40M | 123.80M | 159.40M |
| Total Debt | 32.50M | 25.00M | 25.80M | 24.30M | 29.50M | 66.20M |
| Total Liabilities | 325.40M | 303.70M | 311.50M | 249.20M | 271.00M | 333.40M |
| Stockholders Equity | 257.70M | 258.20M | 235.70M | 219.40M | 211.20M | 199.00M |
Cash Flow | ||||||
| Free Cash Flow | 73.80M | 49.90M | 37.20M | 55.60M | 13.60M | 27.30M |
| Operating Cash Flow | 75.20M | 51.30M | 42.70M | 55.70M | 14.10M | 29.50M |
| Investing Cash Flow | -2.90M | -2.80M | -9.00M | -100.00K | -1.30M | -2.20M |
| Financing Cash Flow | -43.20M | -30.10M | -25.60M | -15.00M | -48.40M | -18.80M |
Costain Technical Analysis
Positive
230.50
Price Trends
242.59
Positive
226.65
Positive
205.04
Positive
Market Momentum
4.05
Negative
58.33
Neutral
69.80
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 230.5 is below the 20-day moving average (MA) of 251.33, below the 50-day MA of 242.59, and above the 200-day MA of 205.04, indicating a bullish trend. The MACD of 4.05 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 69.80 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £4.04B | 16.32 | 22.88% | 1.68% | 12.13% | 47.64% | |
77 Outperform | £695.25M | 17.24 | 32.45% | 2.83% | 2.98% | 23.40% | |
75 Outperform | £673.20M | 17.89 | 14.73% | 2.02% | -6.49% | 22.41% | |
73 Outperform | £2.10B | 14.00 | 24.09% | 2.57% | 9.58% | 14.74% | |
68 Neutral | £1.93B | 10.13 | 24.83% | 4.00% | 10.84% | 24.56% | |
65 Neutral | £1.30B | 22.66 | 11.95% | 2.49% | 6.75% | 11.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GB:COST
Costain
258.00
106.81
70.64%
GB:BBY
Balfour Beatty
865.00
205.98
31.26%
GB:GFRD
Galliford Try
707.00
206.79
41.34%
GB:KLR
Keller Group plc
3,150.00
1,618.82
105.72%
GB:KIE
Kier Group plc
313.40
100.61
47.28%
GB:MGNS
Morgan Sindall
4,072.00
-417.61
-9.30%
Costain Corporate Events
Business Operations and Strategy
Costain Adds Berenberg as Joint Corporate Broker to Bolster Market Reach
Positive
Oct 22, 2026
Costain Group PLC has appointed Joh. Berenberg, Gossler Co. KG, London Branch as a joint corporate broker with immediate effect, alongside its existing broker Investec Bank plc. The move is likely aimed at broadening Costain’s capital marke...
DividendsRegulatory Filings and Compliance
Costain Issues New Shares Under Scrip Dividend Scheme
Neutral
Oct 20, 2026
Costain has confirmed that shareholders elected to receive 465,937 new ordinary shares under its renewed scrip dividend scheme, in lieu of a cash interim dividend for the year ending 31 December 2026. The interim dividend is scheduled for payment ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Costain completes £20m share buyback and cancels 9.3m shares
Positive
Oct 19, 2026
Costain Group PLC has completed a £20m share buyback programme, acquiring a total of 9,291,059 ordinary shares on the London Stock Exchange through Investec between 14 and 16 October 2026. The company intends to cancel all repurchased shares ...
Business Operations and StrategyStock Buyback
Costain advances share buyback, cancels 8.9m shares
Positive
Oct 14, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 7 and 13 October 2026 at volume-weighted average prices ranging from about 239p to 248p....
Business Operations and StrategyRegulatory Filings and Compliance
Costain Extends 2022 Sharesave Options to Staff and Senior Executives
Positive
Oct 12, 2026
Costain has granted options over 2,510,060 ordinary shares under its 2022 Sharesave Plan, following an offer made to all eligible employees in mid-September. The options, exercisable at £1.82 per share, are scheduled to vest on 1 December 202...
Business Operations and StrategyShareholder Meetings
Costain addresses shareholder concerns over political donations authority
Neutral
Oct 9, 2026
Costain has provided an update on the shareholder vote at its May 2026 annual general meeting regarding authority to make political donations and expenditure. While the resolution passed with the required majority, a significant minority of 20.57%...
Business Operations and StrategyStock Buyback
Costain advances share buyback, cutting share count to 261.5m
Positive
Oct 7, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 30 September and 6 October 2026 at volume-weighted average prices ranging from about 252...
Business Operations and Strategy
Costain wins key role on £4.29bn Pagabo infrastructure framework
Positive
Oct 2, 2026
Costain Group PLC has been appointed to Pagabo’s National Framework for Civil Engineering, Infrastructure and Enabling Works 2026, an infrastructure procurement programme with an estimated value of £4.29bn running to 2030. The company i...
Regulatory Filings and Compliance
Costain director Tony Quinlan increases shareholding with market purchase
Positive
Oct 1, 2026
Costain Group PLC has disclosed that non-executive director Tony Quinlan acquired 5,692 ordinary shares in the company on 30 September 2026 at a price of £2.6216 per share. Following this purchase, Quinlan’s total holding has increased ...
Regulatory Filings and Compliance
Costain Confirms Share Capital and Voting Rights for FCA Disclosure
Neutral
Oct 1, 2026
Costain Group PLC has confirmed that, as of 30 September 2026, its issued share capital consists of 262,325,926 ordinary shares of 1 pence each, with each share carrying one voting right and no shares held in treasury. This disclosure clarifies th...
Stock Buyback
Costain Reduces Share Count With Ongoing Buyback Programme
Positive
Sep 30, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, purchasing a total of 469,? ??6 ordinary shares between 23 and 29 September on the London Stock Exchange through Investec. The trades were executed at vol...
Dividends
Costain Sets 253.4p Scrip Reference Price for 2026 Interim Dividend
Neutral
Sep 24, 2026
Costain has set the scrip dividend reference price for its interim dividend for the year ending 31 December 2026 at 253.4 pence per ordinary share. The price reflects the average middle market closing price over five trading days starting on the 1...
Business Operations and StrategyStock Buyback
Costain advances share buyback, cancels over 7.2 million shares
Positive
Sep 23, 2026
Costain has continued to execute its previously announced share buyback programme, repurchasing 78,822 ordinary shares on the London Stock Exchange between 16 and 22 September 2026 at volume-weighted average prices of about 231p and 255p. The comp...
Business Operations and StrategyStock Buyback
Costain Cuts Share Count Further with Ongoing Buyback Programme
Positive
Sep 16, 2026
Costain Group PLC has continued to execute its share buyback programme, purchasing a total of 281,517 ordinary shares between 9 and 15 September 2026 on the London Stock Exchange via Investec at volume‑weighted average prices around 225 penc...
Business Operations and StrategyStock Buyback
Costain Advances Share Buyback, Cuts Share Count to 262.9 Million
Positive
Sep 9, 2026
Costain Group has continued executing its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 2 and 8 September 2026 through Investec. The company intends to cancel all shares bought back...
Business Operations and StrategyStock Buyback
Costain Reduces Share Count with Ongoing Buyback Programme
Positive
Sep 2, 2026
Costain Group PLC has continued to execute its share buyback programme, repurchasing a series of ordinary shares on the London Stock Exchange between 26 August and 1 September 2026. The transactions, carried out through Investec at volume-weighted...
Regulatory Filings and Compliance
Costain updates market on total voting rights and share capital
Neutral
Sep 1, 2026
Costain Group PLC has confirmed that, as of 28 August 2026, its issued share capital consists of 263,448,699 ordinary shares of 1 pence each, with every share carrying one voting right and no shares held in treasury. This updated share count provi...
Stock Buyback
Costain advances share buyback, cuts share count to 263 million
Positive
Aug 26, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, purchasing its own ordinary shares on the London Stock Exchange through Investec between 19 and 25 August 2026. The trades were carried out at volume-weig...
Business Operations and StrategyStock Buyback
Costain advances share buyback, cancelling over 6m shares
Positive
Aug 19, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 12 and 18 August 2026 at volume-weighted average prices ranging from about 223p to 232p....
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Costain’s Cash Strength and Record Order Book Set Up Step-Change in Growth
Positive
Aug 13, 2026
Costain reported another strong first-half performance for 2026, with revenue up 3.4% to £543.1m and adjusted operating profit rising 3% while maintaining a 3.2% margin, marking what management describes as an inflection point ahead of a plan...
Business Operations and StrategyStock Buyback
Costain reduces share capital through ongoing buyback
Positive
Aug 12, 2026
Costain Group PLC has continued to execute its share buyback programme, purchasing a total of 205, – wait this must be precise. Costain Group PLC has continued to execute its share buyback programme, acquiring ordinary shares on the London S...
Business Operations and StrategyStock Buyback
Costain Reduces Share Capital Through Ongoing Buyback Programme
Positive
Aug 5, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, purchasing ordinary shares on the London Stock Exchange between 29 July and 4 August 2026 via Investec. The acquisitions were made at volume‑weighte...
Regulatory Filings and Compliance
Costain Confirms Total Voting Rights and Share Capital
Neutral
Aug 3, 2026
Costain Group PLC has confirmed that, as of 31 July 2026, its issued share capital consists of 264,266,847 ordinary shares of 1 pence each, with every share carrying one voting right. The company holds no ordinary shares in treasury, meaning all i...
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.