Totally agree Sophia so undervalued still. Have a large holding but may add some more at these prices if it doesn't start moving north.As before when some of us patiently awaited when languishing around 50p levels, same here this will rise again to higher levels starting to reflect a proper evaluation. My initial target is 150 to 180p range for next 12 months.FYI 4 analysts covering this stock. All Strong Buy ratings with targets with min estimate of 115p and max 187p, with average 139p 12 month share price forecast.https://www.tradingview.com/symbols/LSE-COST/forecast/Sit tight and hopefully we will all have made a nice 50% increase in the value of our Costain holding by Christmas. Let's see how the year pans out. Good luck a?l. |
Please note: 7.9% of NAV!. That is huuge conviction |
 From Ennismore Fund's newsletter
Costain Group Plc – UK engineering and construction company (7.9% NAV)
Costain Group Plc is a GBP 288m market capitalised UK construction company focussed on infrastructure and regulated
sectors, especially in the Transportation segment i.e. mainly road and rail (71% of 2023 revenue) with the remainder in
the Natural Resources segment; water, energy, and defence. The increasing capex requirements for the water industry to
upgrade their Victorian era infrastructure should be a key tailwind going forward, as well as work linked to carbon capture
projects in the longer term. The decision to finish the HS2 project in Euston rather than Old Oak Common is also helpful.
They don’t have any fixed price work and lean to open book framework contracts, which should lead to stable margins
overall. They target over 5% medium term operating margin, helped by higher margin consultancy and engineering work
and we think these targets are attainable. Their margin is also assisted by exposure to “green” areas such as the multi-
GBP billion carbon capture and storage project recently confirmed where they tend to be on the consultancy and project
management side rather than contract delivery.
We see operating profit of around GBP 48m this year, growing by over 10% and with sector leading margins. They are
currently buying back stock which we see as sustainable and alongside the dividend leads to return to shareholders of
around 5 percent a year, but we think these could easily step up. We expect around net cash of GBP 150m adjusted for
the negative working capital on the balance sheet. Placing a multiple of 8 times operating profit post tax plus adjusted
cash gives upside of over 45% to 160p to the end of 2025. |
What was the outcome? |
Hopefully Reeves announcements today on increased infrastructure spending to get UK growth started will be furtger good news for Costain |
Do you actually have any clue what these organisations do? Surely any business that aims to welcome all gets the best possible talent. |
Thanks KKT. That was an informative read. |
That's one positive about Trump, he's put a stop to all this woke rubbish. |
Surely it's a bit extreme to write off a company with good fundamentals just because they've signed up to a diversity charity. |
I was tempted to buy COST but I see they are Stonewall Diversity Champions and signed up to all the woke DEI rubbish.
If they's just doing this for show - to pass muster with the banks - fair enough, but if the directors are dim enough to take DEI seriously then this is one to avoid IMHO. |
I agree Sophia. The EV relative to profits is absurd. |
I believe that 2024 adj EPS will be in excess of 13p, as there will be a nice financial income from cash. The stock remains extremely undervalued on all metrics. Perhaps one of the cheapest stock in the UK market. I am also surprised that there are apparently no interested parties in buying the whole company. EV is about 90mm for an EBIT of 42... |
Panmure haven't changed any of their numbers following the trading statement. 2024 EPS 12.4p (adjusted) v 11.9p in 2023. They are, however, looking for 14.3p this year and suggest that COST is closing in on its margin targets a year early. For me, the best feature of the statement was the strong growth in the Order Book which pretty much guarantees growth for several years after a dull 2024.
I am at a loss to understand why COST isn't being acquired. |
I'm in for a trade averaging at 92p.
-Fears overdone
-Price retreats from 110p
-Statement confirms continued bullish trading with highly encouraging order book growth
-This very short term chart blip aside, this is a standout performer in our smaller cap market. You don't see too many charts like this.
-Barring some major crash in the US on the back of AI competition concerns, expecting the price to at least head back into that 100p-110p range on the back of this.
-Intraday was pinging about between 90p and 92p with a buyer in size at 90p picking up blocks in 10k icebergs.
Yeah, that is about it for now.
All imo
DYOR |
Think this is a bargain at these levels. An impressive order book increase of GBP1.8 bn (30% increase). FY23 future order book was 3.9 Billion and now FY24 is 5.46 billion.At good margins as well now restructuring over last few years has been completed |
Yes it is all wrong what do these people know about running a business At least Trump and Musk for all there negatives know how to run a business and make money. I always worked in the private sector and had to make money for my company to stay employed along with the rest of the workforce. I live with 2 civil servants family members and how different my mindset is to there's |
Agree. Shame we don't follow the American system and appoint people actually qualified to the top jobs. Rather than people who go into politics because they were useless at a proper job. |
What she needs to do on Wednesday is resign But they will only have an even less qualified muppet available |
Chancellor to announce big building contracts on Wednesday |
As i said a few days ago, all pluses intact |
Happy to be back in again here. The recent drop may have been the catalyst for them to issue a well overdue trading update. Either way the sharp increase in their forward work position to £5.4bn (FY 23: £3.9bn) should provide confidence to the market. |
What a show of strength by the Team and Company. That'll put the naysayers in their box. No rumours to be spread here. Move along. |
Well done the management team Great RNS |
Well done Paul and Costain. Thank you for listening to your shareholders.Trading Update with Strong Forward Work PositionCostain Group PLC ("Costain" or the "Group") today confirms that it will announce its full year results on 11 March 2025. Trading for FY 24 has been positive with Group adjusted operating profit expected to be in line with market expectations and net cash at the end of the year in line with market consensus1. Costain finished the year strongly:· Growing in strategic markets with further significant Water and Rail awards announced in H2 24.· Continuing to broaden and grow its Tier 1 customer base.· Growing its consultancy services, including the engineering, procurement and construction (EPCm) award following the FEED contract for the bp joint ventures Net Zero Teesside Power and the Northern Endurance Partnership, and a second hydrogen FEED contract.Costain has seen a substantial increase of £1.5bn in its high-quality forward work position to £5.4bn (FY 23: £3.9bn) at the end of FY 24. This, together with growth on existing frameworks and attractive levels of bidding activity, gives the Group increasing confidence in its ability to deliver further growth in operating profits and margins.1 Market expectations for FY 24 adjusted operating profit is between £41.9m and £43.3m with market consensus for net cash of £160.0m. |
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